Motor Comprehensive Premium Written
Recording the annual premium for a comprehensive motor policy covering own damage and TPL.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Premium Receivable (Motor Comprehensive) | Asset (+) | 850.00 | - |
| Written Premium — Motor Comprehensive | Revenue (+) | - | 850.00 |
💡 Accountant's Note
Comprehensive motor covers own damage, theft, fire, and TPL. It is the highest-premium motor product. In Jordan, the comprehensive rate is typically 2-4% of the vehicle value.
Practitioner & Systems Framework
💻 ERP Architecture
Comprehensive motor premiums are calculated by the policy admin system based on the vehicle's agreed value (or market value), the rate applied by the underwriter, and applicable loadings or discounts (NCB, driver age, usage type). The agreed value must be confirmed by a vehicle assessment or market valuation at inception. The premium includes the mandatory TPL component plus the own damage premium. The system issues the comprehensive certificate alongside the mandatory TPL certificate.
⚠️ Audit Flags
Auditors test the accuracy of the sum insured (vehicle value) against market valuations — overstatement of vehicle value inflates both the premium and potential claims exposure. Verify that the NCB discount applied matches the claims history for the vehicle or driver. Test the application of the agreed rate to vehicle value across a sample of policies. Confirm that instalment arrangements have proper credit terms and that overdue instalments are tracked and escalated.
📄 Required Documentation
Vehicle valuation report or market value confirmation, policy schedule with agreed value and premium computation, NCB certificate or claims history from prior insurer, and instalment schedule if applicable.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.