Axis Underwriting announce their approach to the changes
June 24, 2016
IMPORTANT CHANGES TO THE NEW SOUTH WALES EMERGENCY SERVICES LEVY
The New South Wales Government has passed legislation to abolish the Emergency Services Levy (ESL) – known also as Fire Services Levy (FSL) – from insurance premiums with effect from 1 July 2017 and replace it with a property-based levy as part of council rates.
The government believes this is a fairer and more equitable approach.
The Fire Services Levy component of insurance premiums relates to the financial year the policy was taken out and not to the policy period, however, insurers are still required to meet their full FSL obligations for the 1 July 2016 to 30 June 2017 financial year.
To ensure Axis can meet our collection obligations, we have determined that the FSL charges should be revised and the following new rates will be effective from 16 July 2016.
We will review these rates on a regular basis through the financial year to ascertain any possible adjustments with the intention of reducing the rates over the year to 0% prior to July 2017, however, further steps to ensure we meet our collection obligations include:-
FSL refunds will not apply to cancellations except where –
there is a full cancellation (ie. from inception of cover or within the cooling-off period)
Axis cancels the cover where we are permitted to do so.
Due date extensions will not be permitted
AMENDMENT TO YOUR POLICY WORDING: The following endorsement is added to Your Policy:-
Cancellation: If You cancel this Policy for any reason, where You are entitled to a refund under General Conditions Cancellation the premium component relating to NSW Emergency/ Fire Services Levy will not be refunded to You.
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