Car Insurance
Allianz is unable to calculate in advance the exact amount we need to allocate to particular policies and, as a consequence, may either over-recover or under-recover these amounts in any particular year. The under- and over-recoveries are reported to the Victorian fire authorities but no adjustment will be made to your premium by reference to any such under- or over-recovery. Allianz may take into account the under- or over-recovery in respect to our calculation of the allocation to policies in future years.
The FSL contributions payable by an insurer constitutes a tax upon the insurance companies themselves and in broad terms is collected by a process of advance payments which are subsequently adjusted to reflect the amount of the contribution allocated to a particular insurer at the end of each year.
How much do insurers contribute to Victorian Fire Services?
Insurers insuring against fire property in Victoria are required to contribute 75% of the annual budget for Victorian fire services.
What additional taxes or charges are customers required to pay on top of the FSL estimate?
GST and Stamp Duty are calculated over and above the FSL estimate in accordance with government requirements.
Why is additional information being provided on Allianz schedules in relation to FSL?
The provisions of the Victorian State Emergency Services Act 2005 require better disclosure to customers in respect to the way FSL is estimated (and not calculated) by insurers.
Is the FSL amount billed to a customer the actual or estimated amount that will be remitted to the Victorian fire services?
The amount is an estimate only and the actual amount is not known at the date of issue of the policy. Allianz has estimated the amount it will be required to pay towards their contribution.
If Allianz over or under- estimates the FSL contribution in any given year, is the customer entitled to a refund at the end of the year?
No, Allianz will take into account the under- or over-recovery in respect to our calculation in future years.
How does Allianz estimate the FSL contribution in any given year?
There is no method by which an insurer can determine the exact amount which should be allocated to a particular policy at the time of its issue, without providing an adjustment at the end of the year once the final allocation contributions to the particular insurer are known. As this is not practical to do on a ‘policy by policy’ basis, Allianz applies and FSL rate by class of business as recommended by the Insurance Council of Australia. Allianz will take into account the under- or over-recovery in respect to our calculations in future years.
Why does similar information in respect to FSL not appear on policy schedules for risks in NSW?
State laws in NSW have no such disclosure requirements like those imposed in Victoria. However Allianz will continually monitor the situation to ensure it not only complies with relevant law but also provides an appropriate level of information regarding all charges to its customers.
