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    Levy

    Collection of Levy on Insurance Premium

    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.

    LEVY RATES

    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 (HKD)
    From 1 Jan 2018 till 31 Mar 2019 (both dates inclusive) 0.040% 2,000
    From 1 Apr 2019 till 31 Mar 2020 (both dates inclusive) 0.060% 3,000
    From 1 Apr 2020 till 31 Mar 2021 (both date inclusive) 0.085% 4,250
    From 1 Apr 2021 onwards (date inclusive) 0.100% 5,000

    (1) Inception date in relation to a contract of insurance, means the date on which the first premium under the contract becomes payable.

    ILLUSTRATIVE EXAMPLE

    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)    		 Remarks
    Inception date 1 July 2017 - - - -
    1st anniversary date 1 July 2018 0.040% 2,000 4 Below max levy
    2nd anniversary date 1 July 2019 0.060% 3,000 6 Below max levy
    3rd anniversary date 1 July 2020 0.085% 4,250 8.5 Below max levy
    4th anniversary date 1 July 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. For additional information, please refer to the Frequently Asked Questions section below or contact us at 2560 1990.
    Frequently Asked Questions
    What is insurance levy and when does it become effective?From 1 January 2018 onwards, a levy on insurance premiums for insurance policies will be payable to the Insurance Authority by policyowners via insurance companies under Insurance (Levy) Order and Insurance (Levy) Regulation in order to support the operational costs of IA. Levy is calculated based on the levy rate on the premium payable per policy with a cap on the levy per policy per policy year. Who is responsible for paying the levy to the Insurance Authority (IA)?Levy has to be paid at the same time as the premium. The policyowner must pay levy via the insurance company together with premium. Can a policyowner pay the Levy alone in advance?No. A policyowner can pay the levy together with the premium in advance, but cannot pay the levy alone in advance. When do I need to pay levy? What will be the consequence if I do not pay levy on time?Levy is due when the premium is paid. Policyowners must pay the levy together with the premium. As stated in the law, if a Policyowner fails to pay the required levy on time, the Insurance Authority (IA) may impose a pecuniary penalty of up to HK$5,000 and has the authority to recover the outstanding levy as a civil debt. For autopay payment, will you collect the Levy with the premium? If it is noted that the respective policy has an overdue levy, will this outstanding amount be collected at the same time?Yes. For all policy owners who pay premiums through autopay, unless they have informed us in writing that they would arrange to pay the levy separately, we will collect both premium and levy in one go via autopay, but an overdue levy will not be collected. We therefore advise our policy owners to have sufficient funds in their bank account and adjust the autopay withdrawal limit with the bank (if applicable) to avoid additional bank charges. Can I pay levy to IA directly?Cannot. Under Insurance (Levy) Regulation, policyowners have to pay levy to the Insurance Authority via insurance company. Any impact on my policy coverage and return after the implementation of levy?Levy will not affect your insurance coverage or returns. Will my policy be terminated If I didn’t pay the levy?The implementation of levy does not affect the continuity of insurance coverage. If you pay your premium only without the levy, your policy will not be terminated. However, if a policyowner fails to pay the required levy on time, the Insurance Authority (IA) may impose a pecuniary penalty of up to HK$5,000 and has the authority to recover the outstanding levy as a civil debt. Can I apply for addition of benefits / policy changes if I do not pay levy? These changes may affect the premium amount, will levy be adjusted correspondingly? And do I need to pay the levy difference to complete the application?If the policy change request results a premium adjustment, the difference in premium will be subject to levy. Furthermore, the policy change request will only be completed upon settlement of any outstanding levies. Any Levy Rate & Cap Per Policy Per Policy Year will be posted in Cigna Healthcare website?Yes, information regarding the Levy Rate & Cap will be available on the Cigna Healthcare website: https://www.cigna.com.hk/en/levy Will levy be refunded to policy holders?A refund of levy is allowed if the corresponding premium becomes refundable, e.g. cancellation of policies, cooling-off, etc. However, there will not be refund of levy if the amount of levy payable on premium after refund has reached the levy cap and for cancellation of policies that do not constitute any premium refunds.

    Cigna Worldwide General Insurance Company Limited has been authorized and regulated by the Insurance Authority to carry out general insurance business in or from the Hong Kong SAR. Cigna Worldwide General Insurance Company Limited ("Cigna Healthcare"), © 2025 Cigna Healthcare. All rights reserved

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