The office of the NSW Emergency Services Levy Insurance Monitor will close on 30 June 2020 due to the repeal of the Emergency Services Levy Insurance Monitor Act 2016 (ESLIM Act), which establishes the role, functions and powers of the monitor.
The Emergency Services Levy Act 2017 which establishes the requirement to pay an emergency services insurance contribution in respect of premiums for relevant insurance and sets out the methods of assessment and calculation for these contributions, will however continue in force.
This provides the treasurer with some oversight functions including the ability to request certain information from insurers regarding the payment of premiums and monitor of over-collection of ESL after the date of repeal.
National Insurance Brokers Association (NIBA) Legal Adviser, Mark Radford has provided a legal note for insurance brokers offering an indepth explanation about information that pertain to intermediaries.
The ESL Act also enables the Chief Commissioner of Revenue NSW to provide information to the treasurer on whether insurers have over-collected ESL after they submit their annual Return of Premiums for the financial year. This power is currently in effect.
These provisions of the ESL Act will practically replace the general oversight functions of the Monitor after the date of repeal.
It is also worth noting that members of the Insurance Council of Australia and subscribers to the updated 2020 General Insurance Code of Practice will be subject to the part of the code which will apply from the earlier of the time an insurer adopts the new Code or 1 January 2021.
You can access Radford’s complete explanation on the NIBA website here.