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KD Holding Group
Notes to Consolidated Financial Statements as at and for the year ended 31 December 2007
emergence of events, or when emergency assistance
2.14.1.3 Health insurance contracts
is needed when traveling abroad. In insuring the
costs of procedures, the most important feature is the
insurance of legal aid which provides the policy holder
with coverage of attorney fees.
The Group offers three of four types of optional
health insurance as set by the Health Care
and Health Insurance Act (ZZVZZ), namely
supplementary health insurance, extra health
In all of the above contracts, premiums accrue
insurance and parallel health insurance.
when they become payable by the policy holder.
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 coverages on the balance
sheet date is presented as unearned premium reserve
and represents a liability of the Group. Recognised
as revenue are accrued premiums less changes in
unearned premium reserves.
Supplementary health insurance covers the difference
between the healthcare costs under Art. 23 of the
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 in the list of
interchangeable medical products, medication aids
and technical accessories.
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The amounts of damage and appraisal costs are
recognised as liability at the time the damage was
incurred. Damages incurred but not fully resolved as
at the balance sheet date are recognised as liabilities
for damages. Liabilities for damages incurred and
reported as at the balance sheet date are formed on
the basis of individual appraisal of damages. Liabilities
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 the cash
payouts which are not part of mandatory health
insurance and are not covered under supplementary
or substitute health insurance.
for damages incurred but not reported as at the
balance sheet date are assessed through statistical
analysis. Liabilities for damages are further increased
by the estimated costs of resolving such damage
cases. Accrued indemnifications/insurance amounts,
including costs of appraisal and resolution of damage
cases, increased by the difference of liability for
damages, are recognised as an expense.
Parallel health insurance covers the costs of health
services and related services, and supply 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 that regulated
under mandatory health insurance.