polica

1. (a single board) shelf
   Knjige stoje na gornjoj polici. — The books are on the top shelf.
   Mleka više nema na policama prodavnica. — There's no more milk on the store shelves.
2. (piece of furniture) shelving unit; bookcase
   Kupili smo novu policu za knjige u dnevnu sobu. — We bought a new bookcase for the living room.

An insurance policy in Serbian is polisa, not polica.