COLLECTION OF LEVY ON INSURANCE PREMIUM TO INSURANCE AUTHORITY
Effective from 1 January 2018, the Insurance Authority (IA) started collecting a premium levy from the policyowner of all new or in-force life insurance policies via insurance companies in accordance with Insurance (Levy) Regulation and Insurance (Levy) Order under the Insurance Ordinance (Cap.41). The prescribed levy rate and cap shall be subject to change from time to time.
The policyowner is required pay the levy along with the premium payment. If the policyowner does not pay the required levy, the IA may impose on the policyowner a pecuniary penalty of up to $5,000 under section 3(4) of the Insurance Levy Regulation. The IA may recover the outstanding levy as a civil debt due to it.
The levy rates and caps prescribed under the Insurance (Levy) Order are set out below:
| Policy Effective Date or Policy Anniversary Date |
Levy Rate (%) |
Levy Cap* (HK$) |
|---|---|---|
| 1 January 2018 to 31 March 2019 (Both dates inclusive) |
0.040 | 40 |
| 1 April 2019 to 31 March 2020 (Both dates inclusive) |
0.060 | 60 |
| 1 April 2020 to 31 March 2021 (Both dates inclusive) |
0.085 | 85 |
| April 2021 onwards (Date inclusive) |
0.100 | 100 |
*Levy Cap is calculated with single payment or annualized premium.
For further information, please visit IA’s webpage (https://www.ia.org.hk).