Premium Levy

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:

 

Phase 1

Phase 2

Phase  3

Phase 4

 

1 January 2018 to
31 March 2019

1 April 2019 to
31 March 2020

1 April 2020 to
31 March 2021

1 April 2021
onwards

Levy rate

0.04%

0.06%

0.085%

0.1%

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.