1
The fresh approach to rural insurance The Emergency Ser vices Lev y (ESL) On the 30th May 2017, the NSW Government decided to defer the introduction of the Emergency Services Levy (ESL) as an annual levy for all landowners in NSW, opting instead to retain the current system of collecting the ESL as an additional charge on insurance policies pending a review of the policy. With the commencement of the Emergency Services Levy Act 2017, insurers are now again permitted to charge ESL on insurance policies. PO Box 236 Gordon NSW 2072 T 02.9496.9300 | F 02.9496.9308 | www.ruralaffinity.com.au ABN 72 119 838 854 AFS Licence No. 302182 Disclaimer This update is correct as at 19 October 2017. The information may change anytime without notice. This update is not a substitute of legal advice and Rural Affinity, Talbot Underwriting Australia or their related entities will not be liable for any action taken, or omitted to be taken, in reliance upon the contents of this document. Update 19 October 2017 What does this mean for you? ESL will be charged for all renewals and new business quotations with effect from 1st September 2017. For renewals and new business incepting between 1 July 2017 and 1 September 2017, terms already issued will not be amended to include ESL. However, ESL will be charged (where applicable) for any alteration to the cover during the policy period. For example: A Farm Pack renewal has been bound for the period 15 July 2017 to 15 July 2018 with no ESL charged. If the same policy is endorsed to increase Domestic Contents with effect from 1 November 2017, ESL will apply to the additional premium applicable for the period 1 November 2017 to 15 July 2018. How is the ESL calculated? Talbot Underwriting Australia have advised that with effect from 8 October 2017 ESL rates are to be applied as follows: Fire 36.00% Domestic 19.00% Vehicles 1.00% Static Plant and Machinery 36.00% How is the ESL calculated? As was the case under the previous system, the NSW Government advises insurers the total amount of ESL it requires from each of them (a lump sum), based on each insurers market share of premiums for specified insurance classes. In order to meet that obligation, each insurer then determines what percentage they need to charge for ESL on insurance policies, which is why rates can vary between insurers. More Information If you would like more information please contact us on 02 9496 9300. More information regarding the Monitor can be found at http://www.eslinsurancemonitor.nsw.gov.au/node/42. U U U U Up p p p pd d d d d da a a a a at t t t t t t e e e e e e 1 1 1 9 9 9 9 9 9 O O O O Oc c c c ct t t t t o o o o ob b b b b b be e e e e er r r r r 2 2 2 2 20 0 0 0 0 1 1 1 1 7 7 7 Update 19 October 2017

Emergency Services Levy rv13.7.17 - ruralaffinity.com.aururalaffinity.com.au/downloads/ESL Update 191017_FINAL.pdf · The fresh approach to rural insurance The Emergency Services

  • Upload
    vuquynh

  • View
    214

  • Download
    0

Embed Size (px)

Citation preview

Page 1: Emergency Services Levy rv13.7.17 - ruralaffinity.com.aururalaffinity.com.au/downloads/ESL Update 191017_FINAL.pdf · The fresh approach to rural insurance The Emergency Services

The fresh approach to rural insurance

The Emergency Services Levy (ESL)

On the 30th May 2017, the NSW Government decided to defer the introduction of the Emergency Services Levy (ESL) as an annual levy for all landowners in NSW, opting instead to retain the current system of collecting the ESL as an additional charge on insurance policies pending a review of the policy.

With the commencement of the Emergency Services Levy Act 2017, insurers are now again permitted to charge ESL on insurance policies.

PO Box 236 Gordon NSW 2072 T 02.9496.9300 | F 02.9496.9308 | www.ruralaffi nity.com.au ABN 72 119 838 854 AFS Licence No. 302182

Disclaimer This update is correct as at 19 October 2017. The information may change anytime without notice. This update is not a substitute of legal advice and Rural Affi nity, Talbot Underwriting Australia or their related entities will not be liable for any action taken, or omitted to be taken, in reliance upon the contents of this document.

Update 19 October 2017

What does this mean for you?

ESL will be charged for all renewals and new business quotations with effect from 1st September 2017.

For renewals and new business incepting between 1 July 2017 and 1 September 2017, terms already issued will not be amended to include ESL. However, ESL will be charged (where applicable) for any alteration to the cover during the policy period. For example:

A Farm Pack renewal has been bound for the period 15 July 2017 to 15 July 2018 with no ESL charged. If the same policy is endorsed to increase Domestic Contents with effect from 1 November 2017, ESL will apply to the additional premium applicable for the period 1 November 2017 to 15 July 2018.

How is the ESL calculated?

Talbot Underwriting Australia have advised that with effect from 8 October 2017 ESL rates are to be applied as follows:

Fire 36.00%

Domestic 19.00%

Vehicles 1.00%

Static Plant and Machinery 36.00%

How is the ESL calculated?

As was the case under the previous system, the NSW Government advises insurers the total amount of ESL it requires from each of them (a lump sum), based on each insurers market share of premiums for specifi ed insurance classes. In order to meet that obligation, each insurer then determines what percentage they need to charge for ESL on insurance policies, which is why rates can vary between insurers.

More Information

If you would like more information please contact us on 02 9496 9300.

More information regarding the Monitor can be found at http://www.eslinsurancemonitor.nsw.gov.au/node/42.

UUUUUpppppddddddaaaaaattttttteeeeee 111999999 OOOOOccccctttttooooobbbbbbbeeeeeerrrrr 22222000001111777Update 19 October 2017