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 to
31-Mar-19
1 April 2019 to
31-Mar-20
1 April 2020 to
31-Mar-21
1-Apr-21
onwards

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 info@generali.com.hk or +852 2521 0707 for enquiry.

Notes:
1.Reinsurance business, policies underwritten by authorized captive insurers, and marine, aviation and goods-in-transit business are exempt from the levy.
2.The Insurance (Levy) Regulation and the Insurance (Levy) Order under the Insurance Ordinance (Cap. 41).
3. Group life insurance policies with medical protection offered by employers will be subject to the levy cap for general insurance policies.
4. For life insurance policy without a predetermined premium payment schedule, the levy cap is applicable on a per premium basis instead.