COLLECTION OF PREMIUM LEVY TO INSURANCE AUTHORITY
From 1 January 2018 onwards, policyholders of new or in-force insurance policies1 are required to pay premium levy to the Insurance Authority (IA) via the insurance companies in accordance with the law2. For further information, please visit https://www.ia.org.hk/.
Premium levy amount is a specific percentage to each premium payment subject to a levy cap3 applied per policy per policy year4. The levy rates and caps prescribed by the IA are set out below:1
Phase 1 | Phase 2 | Phase 3 | Phase 4 | |
1 January 2018 to31-Mar-19 | 1 April 2019 to31-Mar-20 | 1 April 2020 to31-Mar-21 | 1-Apr-21onwards | |
Levy rate | 0.04% | 0.06% | 0.085% | 0.10% |
Levy cap (HK$) | ||||
Life insurance | 40 | 60 | 85 | 100 |
General insurance | 2,000 | 3,000 | 4,250 | 5,000 |
If you have any questions regarding premium levy on insurance policies, please contact us at [email protected] or +852 2521 0707 for enquiry.