Broker Alert: NSW Emergency Service Insurance Levy

The Emergency Services Levy Insurance Monitor has expressed concern regarding information being given to clients by some insurance brokers.

Apparently some clients have been told that where the period of the insurance policy extends beyond 1 July 2017, there is a chance the client will be paying twice for their emergency services – once via the insurance levy, and later via the property levy.  This is not correct, and information of this nature should not be provided to clients.

Clients taking out or renewing insurance during the 2016/2017 financial year will have an ESL component included in the insurance premium.  This will be their ESL contribution for that financial year.  They will receive an emergency services property levy for the 2017/2018 financial year.  That will be their ESL contribution for that financial year.  ESL contributions will be made once each financial year.

NIBA strongly recommends that if clients have questions or concerns regarding the changes to the emergency services levy, they should be referred to the ESL Monitor’s web site, where there are extensive “Frequently Asked Questions” explaining the changes.

Please note that the Monitor has extensive powers where they believe clients have been provided with false and misleading information.  Penalties can apply where this occurs.

NIBA continues to liaise with the ESL Monitor’s office during the phasing out of the ESL insurance levy.  If members have concerns about this matter, please contact NIBA CEO Dallas Booth at dbooth@niba.com.au.