Prescribed Levy to Insurance Authority (“IA”)

About prescribed Levy to Insurance Authority (“IA”)

Effective from 1 January 2018, the Insurance Authority (“IA”) imposed 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:

 

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