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Insurance & MPF > Prescribed Levy to Insurance Authority (“IA”)
Prescribed Levy to Insurance Authority (“IA”)

 

Effective from 1 January 2018, the Insurance Authority (“IA”) will impose a prescribed levy on your insurance policy pursuant to section 134 of the Insurance Ordinance (Cap. 41). Such levy payment should be made together with the premium payment to the insurer for direct remittance to the IA within the remittance period as specified by the IA. Subject to the applicable levy cap, the amount of levy payable for each premium payment is the amount of premium multiplied by the applicable levy rate as prescribed in the table below:

- Life insurance plans – levy will be collected by Hang Seng Insurance Company Limited ("Hang Seng Insurance") on behalf of the IA

- Medical insurance plans – For all insurance contracts issued by Bupa (Asia) Limited (“Bupa”) with an effective date that falls between 1 January 2018 and 1 June 2018, Bupa will pay the prescribed levy for the first whole contract year.
For contracts effective from 1 January – 1 June 2018 (“Special Arrangement Period”):
New and renewing members don’t need to pay the prescribed levy until the next contract year. Bupa will pay for the first year’s levy for contracts effective within this period. This arrangement is applicable to all payment frequency, e.g. yearly payment, monthly payment, etc.
For contracts effective from 1 July 2018 or onwards:
After the Special Arrangement Period, new and renewing members will need to pay for the prescribed levy together with the subscription of each insurance contract. Bupa will then remit the levy payment to the IA.
To know more about the levy, please visit the website of Insurance Authority at www.ia.org.hk.

- General insurance plans – Levy collected by the Insurance Authority has been imposed on relevant policy at the applicable rate and would be remitted in accordance with the prescribed arrangements. For new or renewal policies with inception date in the period from 1 January 2018 to 30 September 2018, QBE General Insurance (Hong Kong) Limited(“QBE”) will settle the IA levy on customer’s behalf. For the new or renewal policies with inception date commence from 1 October 2018 onward, customers shall bear the IA levy. For further information in relation to the levy payment, please visit www.qbegihk.com or www.ia.org.hk.

 
Policy effective date or policy anniversary date which marks the beginning of a policy year
Levy Rate %
Levy Cap in HKD
Specified General Business (General Insurance)
Specified Long Term Business (Life Insurance)
 
From 1 January 2018 till 31 March 2019 (both dates inclusive)
0.040%
HKD2,000
HKD40
From 1 April 2019 till 31 March 2020 (both dates inclusive)
0.060%
HKD3,000
HKD60
From 1 April 2020 till 31 March 2021 (both dates inclusive)
0.085%
HKD4,250
HKD85
From 1 April 2021 onwards (date inclusive)
0.100%
HKD5,000
HKD100

For more details about the levy matter, please refer to the Frequently Asked Question or you may visit www.ia.org.hk/en/levy

 

Medical insurance: The health insurance schemes are underwritten by Bupa which is authorised and regulated by the Insurance Authority in Hong Kong. Hang Seng Bank Limited (“Hang Seng Bank”) is an insurance agent authorised by Bupa for the exclusive distribution of the Hang Seng Bupa PreciousHealth Series health insurance schemes and package group schemes.
General insurance: The general insurance plans are underwritten by QBE which is authorised and regulated in Hong Kong by the Insurance Authority. Hang Seng Bank Limited (“Hang Seng Bank”) is an insurance agent authorised by QBE for the distribution of the plans.