From 1 January 2018 a premium levy on Hong Kong insurance policies will be payable to the Insurance Authority by policyholders in line with new regulations. The levy is a percentage of the premium payable, with a cap applied per policy per policy year. The Insurance Authority has provided further information on their website https://www.ia.org.hk and in their leaflet.
As policyholders must pay the levy with each premium payment, the levy will be collected when premium is paid. Insurers will then remit (pay) the levy to the Insurance Authority. If policyholders fail to pay the levy, policyholders will commit an offence and be liable to a pecuniary penalty of up to HKD5,000.
AXA will calculate the levy on policies for customers as prescribed by the Insurance Authority, using the following information:
1. Policy Inception date for new polices, or Policy Anniversary / Renewal date for existing policies, and type of business to identify the applicable levy rate and cap from the table below; then take
2. The levy amount as the lower of the:
a. Applicable levy rate multiplied by premium amount; or
b. Levy cap per policy, per policy year
Policy Inception date or
General Insurance business
Life Insurance business
Applicable levy cap (HKD)
From 1 January 2018 till 31 March 2019
From 1 April 2019 till 31 March 2020
From 1 April 2020 till 31 March 2021
From 1 April 2021 onwards
How will AXA collect the levy for my policy?
How do I find out the exact amount of premium levy on my policy?
When will I see my documents updated with levy information?
What is the inception date?
Will the levy impact my policy benefits or terms and conditions?
How often do I need to pay the levy?
Can the levy be refunded?
Where can I find out more about the levy?