The Group KD Group and KD Group dd

The Group KD Group Annual Report 2009
Notes to Consolidated Financial Statements as at and for the year ended 31 December 2009
include profits which the policyholder was unable to realise during the halt in production. Insurance of events covers damages
incurred by the organiser in the event of cancellation of an event due to weather, and by special agreement also if the
cancellation occurs as a result of natural or administrative force majeure, or due to fire or explosion.
Transport insurance includes coverage of goods in domestic and international transport, comprehensive insurance of boats
and airplanes, liability insurance of the owner or authorised user of the boat or airplane, insurance of the transporter’s liability
in road traffic, insurance of the forwarding agent’s liability and insurance of maritime agents. The quote is also customised to
fit the needs of the policyholder in the field of liability insurance, or in case of damage to goods under the FIATA bill of lading,
and we also design and provide more specific insurance policies such as liability coverage for repairers of boats, marina and
harbour managers, and insurance of risk borne by constructors of boats and shipyards.
Credit insurance marketed by the Group covers failure to pay contractual obligations for whatever reason and comprises
insurance of commercial loans, insurance of loans for investment in real property, bank overdraft limits, etc. In the segment of
suretyship insurance, the policyholder is provided with a guarantee for earnest deposits, good performance of works, repair of
malfunctions during the warranty period, payment of customs duties, for the event of insolvency of tourist organisations, for
ensuring the payment of goods and services acquired through use of a credit card, guarantees for TIR carnets, etc.
Insurance of assistance costs provides the policyholder with emergency assistance either in relation to vehicles in the event of
malfunction or traffic accident, or in relation to an apartment or house when normal residence is impossible due to the sudden
emergence of events, or when emergency assistance is needed when travelling abroad. In insuring the costs of procedures,
the most important feature is the insurance of legal aid, which provides the policyholder with coverage of attorney fees.
In all of the above contracts, premiums accrue when they become payable by the policyholder. Premiums contain all costs in
addition to premiums, including the agency fee, except taxes. The part of the premiums from valid insurance contracts which
refers to unexpired insurance coverage on the balance sheet date is presented as unearned premium reserve and represents
a liability of the Group. Accrued premiums less changes in unearned premium reserves are recognised as revenue.
The amounts of damage and appraisal costs are recognised as liabilities at the time the claim was incurred. Claims incurred
but not fully resolved as at the balance sheet date are recognised as provisions for claims. Liabilities for claims incurred and
reported as at the balance sheet date are formed on the basis of individual appraisal of claims. Liabilities for claims incurred
but not reported as at the balance sheet date are assessed through statistical analysis. Liabilities for claims are further
increased by the estimated costs of resolving such claims. Accrued indemnifications/insurance amounts, including costs of
appraisal and resolution of cliams, increased by the difference of provisions for claims, are recognised as an expense.
2.14.1.3 Health insurance contracts
The Group offers three of the four types of optional health insurance as set forth by the Health Care and Health Insurance Act
(ZZVZZ), namely supplementary health insurance, extra health insurance and parallel health insurance.
Supplementary health insurance covers the difference between the health care costs under Art. 23 of ZZVZZ and the share of
these costs which is covered under mandatory health insurance or part of this difference where the extra payable amount
relates to the right to medical products included on the list of interchangeable medical products, medical aids and technical
accessories.
Extra health insurance covers the costs of health services and related services and supply of medical products and medical
aids and technical accessories, and the costs involved in cash payouts which are not part of mandatory health insurance and
are not covered under supplementary or substitute health insurance.
Parallel health insurance covers the costs of health services and related services, and supply of medical products and
medical aids and technical accessories which, although they constitute entitlement under mandatory health insurance, are
pursued by the insured under alternative procedures and under different conditions than those regulated under mandatory
health insurance.
The Group concludes long-term insurance contracts on the basis of monthly or annual premiums.
In addition to the above, the Group also offers travel insurance abroad with assistance from CORIS, which covers the costs of
medical treatment and emergency transport. These insurance policies are short term in nature.
The premium is recognised as revenue when the policyholder’s obligation to pay falls due. Premiums contain all costs in
addition to premiums, including the agency fee, except taxes. The part of the premiums from valid insurance contracts which
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