Insurance

Motor Policy Excess Collected from Insured

Collecting the policy excess (deductible) from the insured before releasing the claim payment.

Account NameTypeDebit ($)Credit ($)
Cash in Bank (Excess Received)Asset (+)500.00-
Claims Reserve (Gross Claim Reduced)Liability (-)500.00-

💡 Accountant's Note

The excess is the first amount of any claim borne by the insured. Collecting it reduces the net claim payment. The claims reserve should reflect the gross loss; the excess collection offsets part of the settlement.

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