COLLECTION OF LEVY ON INSURANCE PREMIUM BY INSURANCE AUTHORITY
Starting from 1 January 2018 onwards, a levy on insurance premiums for all new and in-force Hong Kong policies will be payable to the Insurance Authority (“IA”). Levy payable is calculated as a percentage of the premium. The percentage and the maximum levy prescribed by IA are listed in the table below.
At Cigna we are taking a staged approach on levy collection. Initially we are charging levy on only a number of products under Cigna Global Health Options – Cigna Global Platinum, Cigna Global Gold, Cigna Global Silver, and Cigna Global Horizon. Full implementation on all products will be in 2019 at the earliest.
The levy rates prescribed under the Insurance (Levy) Order are as follows:
|Policy inception date(1) or inception anniversary date||Levy rate %||Maximum levy per policy year(2) (HKD)|
|General Business||Long Term Business|
|From 1 Jan 2018 till 31 Mar 2019 (both dates inclusive)||0.040%||2,000||40|
|From 1 Apr 2019 till 31 Mar 2020 (both dates inclusive)||0.060%||3,000||60|
|From 1 Apr 2020 till 31 Mar 2021 (both date inclusive)||0.085%||4,250||85|
|From 1 Apr 2021 onwards (date inclusive)||0.100%||5,000||100|
(1) Inception date in relation to a contract of insurance, means the date on which the first premium under the contract becomes payable.
(2) Group life policies with medical protection will be subject to the maximum levy for “General Business”.
Commencement date for collection of levy is 1 January 2018. For a general business policy with annual premium of HK$10,000 with an inception date of 1 July 2017, the following would apply:
|Policy inception date or inception anniversary date||Applicable Levy Rate %||Applicable Levy Rate %||Levy Payable (HKD)|
(Annual Premium x Applicable Levy Rate)
|1st anniversary date||1.7.2018||0.040%||2,000||4||Below max levy|
|2nd anniversary date||1.7.2019||0.060%||3,000||6||Below max levy|
|3rd anniversary date||1.7.2020||0.085%||4,250||8.5||Below max levy|
|4th anniversary date||1.7.2021||0.100%||5,000||10||Below max levy|
You may want to refer to the website of IA（www.ia.org.hk）for further details as regards collection of levy on insurance premium. Or you may contact us for more information at 2560 1990.
FREQUENTLY ASKED QUESTIONS
|Q:||When does Insurance Authority (IA) starts to collect levy?|
|A:||Levy is applicable to all insurance policies with start or anniversary date starting from January 1, 2018.|
|Q:||Who is bearing and paying levy to the Insurance Authority (IA)?|
|A:||At Cigna we are taking a staged approach on levy collection. Initially we are charging levy on only a number of products under Cigna Global Health Options – Cigna Global Platinum, Cigna Global Gold, Cigna Global Silver and Cigna Global Horizon. Full implementation on all products will be in 2019 at the earliest.|
|Q:||How do I know if Cigna has paid the levy for me?|
|A:||Cigna will bear and pay the required levy amount on behalf of the policy holders. We will also issue SMS message or letter to notify you on the levy arrangement.|