Insurance policy claims

Hi,

Does any company include insurance coverage in its receivables?

eg., if a shop insurance policy was purchased for an amount, and it has a coverage of 1,00,000₹ amount from damage/fire/theft, then is it included in receivables?

I don’t think so right?

txs.

Replies (2)
Quick Summary
This discussion explores whether insurance policy coverage, specifically for damage, fire, or theft, is considered part of a company's receivables. The consensus is that it is not, as it doesn't meet the definition of an asset but rather a contingent asset. While receivables are financial instruments, insurance coverage itself is not recognised as a receivable because it's a potential future benefit rather than a current right to receive funds.

This doesn't meet the definition of asset, instead it mets the definition of contingent asset.
So the same can't be recognised.

I am still confused because Receivables fall under financial instruments and they, financial instruments, don’t fall under the scope of Provisions. Anyways, your right because a contingent asset is not a receivable. Thank you.

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