Net Non-Life Insurance Premiums
Net non-life insurance premiums comprise both the actual premiums payable by policyholders to obtain insurance cover during the accounting period (premiums earned) and the premium supplements payable out of the investment income attributed to insurance policyholders less the service charges payable to the insurance corporation.
The way in which the service charges are calculated. After deducting the service charges from the sum of non-life insurance premiums and premium supplements, the remainder is described as net non-life insurance premiums. Only the net non-life insurance premiums constitute current transfers and are recorded in the secondary distribution of income account. The service charges constitute purchases of services by the policyholders and are recorded as intermediate or final consumption, as appropriate.