COLLECTION OF LEVY ON INSURANCE PREMIUM
With effect from 1 January 2018, if a contract of insurance relates to a prescribed class of insurance business or a type of contract of insurance, a prescribed levy is payable to the Insurance Authority ("IA") for the contract by its policyholder.
The levy rates prescribed under the Insurance (Levy) Order are follows:
Please swipe left/right within the table to scroll through the information.
|A policy inception date*, or a policy inception anniversary date
(as the case maybe) which marks the beginning of a policy year
|Rate %||General Business and Class I policies of specific business nature (maximum levy)||Long Term Business, except policies of specific business nature (maximum levy)|
|From 1 January 2018 till 31 March 2019 (both dates inclusive)||0.040%||$2,000||$40|
|From 1 April 2019 till 31 Mar 2020 (both dates inclusive)||0.060%||$3,000||$60|
|From 1 Apr 2020 till 31 March 2021 (both date inclusive)||0.085%||$4,250||$85|
|From 1 Apr 2021 onwards (date inclusive)||0.100%||$5,000||$100|
*Inception date, in relation to a contract of insurance, means the date on which the first premium under the contract becomes payable
Commencement date for collection of levy is 1 January 2018. For a general individual policy with annual premium of HK$10,000 with an inception date of 1 Jul 2017, the following would apply:
|Applicable Levy Rate (%)||Maximum Levy (HKD)||Levy Payable (HKD)
(Annual Premium x Applicable Levy Rate)
|1st anniversary date||1.7.2018||0.040%||2,000||4||Below max levy|
|2nd anniversary date||1.7.2019||0.060%||3,000||6||Below max levy|
|3rd anniversary date||1.7.2020||0.085%||4,250||8.5||Below max levy|
|4th anniversary date||1.7.2021||0.100%||5,000||10||Below max levy|
You may want to refer to the website of IA (www.ia.org.hk) for further details as regards collection of levy on insurance premium.