With effect from 1 January 2018, the Insurance Authority has started collecting levy on insurance premiums pursuant to the Insurance (Levy) Regulation ("Levy Regulation") and Insurance (Levy) Order ("Levy Order") from policy owners through insurance companies each time when a premium is paid.
The amount of levy payable for each premium payment under an insurance policy will be the amount of premium multiplied by a levy rate and a cap will apply on the levy. The levy rates and maximum levy prescribed under the Levy Order are reproduced as follows:
| Policy Date or Policy Anniversary | Levy Rate % | Maximum Levy per policy per policy year (HKD)* |
|---|---|---|
| From 1 January 2018 till 31 March 2019 (both dates inclusive) |
0.04% | 40 |
| From 1 April 2019 till 31 March 2020 (both dates inclusive) |
0.06% | 60 |
| From 1 April 2020 till 31 March 2021 (both dates inclusive) |
0.085% | 85 |
| From 1 April 2021 onwards (inclusive of that date) |
0.1% | 100 |
*Except Booster Investment Premium which is per premium basis.
Note: For further information, please visit www.ia.org.hk or contact our Customer Services Executives at 22902882.
It is important to note that policyowners who failed to pay the prescribed levy within the timeframe as required by law shall commit an offence under section 3(4) of Levy Regulation and be liable to a pecuniary penalty not exceeding HKD5,000.