Victorian insurance brokers have been urged to check their policies after the state’s Fire Services Levy (FSL) Monitor offered amnesty to brokers who may of unlawfully added FSL charges to policies after 30 June 2013.
The Fire Services Levy Monitor released a statement last week announcing that at least 20 brokers have been identified by the Monitor, Professor Allan Fels, as having charged the levy after the cut-off date.
In most cases, the policies were taken out to cover for construction and building projects commencing in 2013, but Fels says he was still surprised to see insurance professionals charging FSL.
“I have advised brokers and underwriters that the charging of any FSL after 30 June 2013 may constitute a breach of the law,” Fels says.
“Penalties for price exploitation, false representation or misleading or deceptive conduct are considerable: up to $10 million for corporations and $500,000 for individuals.
“I’m not satisfied that brokers concerned have paid sufficient attention to their obligations under the law to avoid charging FSL after 30 June 2013.
“Any broker or their underwriters who have charged FSL after 30 June 2013 and do not arrange for refunds to policyholders by 31 October may be subject to enforcement action.”
For the full statement, click here.