Friday, January 19, 2018

HK to collect levy from insurance policyholders

Starting next year, Hong Kong’s Insurance Authority will start collecting a levy from policyholders through premium payments to insurers.

The move is provided for under the Insurance (Levy) Regulation and the Insurance (Levy) Order under the Insurance Ordinance (Cap 41).

The levy will be incremental in nature and divided into four phases. It will start at 0.04% during the first phase between January 1, 2018 and March 31, 2019, and will gradually increase to 0.06% between April 1, 2019 and March 31, 2020.

An increase of 0.085% will be further collected between April 1, 2020 and March 21, 2021. Finally, the rate of 0.1% will be collected from April 1, 2021 onwards.

Under the law, the amount of levy imposed on each policy will be subject to a cap.

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