What is IA Levy?
The Insurance Authority (IA) is the regulator of the Hong Kong insurance industry. A portion of the new IA’s funding will come from a premium Levy to be applied to all insurance policies (apart from certain exempted classes of business) with policy periods beginning on or after 1 January 2018. The levy will be collected by insurance compaines like Min Xin. Policy holders must pay the levy in accordance with the law.
Starting from the policy year commencing on or after April 1, 2021, the IA Levy will be collected by Min Xin at the applicable rate and cap.
By law, levy is payable together with each premium payment. The Insurance Authority may impose a penalty of up to HK$5,000 on policy owners who do not pay the levy as required on time. If you have any query or different instructions, you may contact Min Xin Insurance Company Ltd. Hong Kong Customer Services Hotlines (852) 2826 3673.
For further information about Levy, please visit:
https://www.ia.org.hk/en/aboutus/role/financial_arrangements.html
What is the rate of IA Levy?
The levy rate and the maximum levy payable per policy year is set out below:
| Policy date and policy anniversary date | Levy Rate | Maximum levy to be applied per policy (general insurance) |
|---|---|---|
| From 1 January 2018 to 31 March 2019 (both dates inclusive) |
0.04% | HKD 2,000 |
| From 1 April 2019 to 31 March 2020 (both dates inclusive) |
0.06% | HKD 3,000 |
| From 1 April 2020 to 31 March 2021 (both dates inclusive) |
0.085% | HKD 4,250 |
| From 1 April 2021 onwards | 0.1% | HKD 5,000 |