Under the Metropolitan Fire Brigades Act 1958 (VIC) and the Country Fire Authority Act 1958(VIC) insurers insuring against fire property in Victoria are required to contribute to the annual budget of the Metropolitan Fire and Emergency Services Board the Country Fire Authority.
The amount Allianz is required to pay is determined by reference to the percentage of premium we collect compared to the premium of all other insurers insuring fire property in Victoria. This percentage is not known at the date of issue of an insurance policy and therefore Allianz allocates to all relevant policies our estimate of the amount that we will be required to pay towards this contribution. The amount (if any) that we have estimated for relevant Allianz policies is shown in the "Premium Details" section of the policy schedule and is described as "Emergency and/or Fire Levies".
From 1 July 2013, insurers will no longer be required to contribute to the funding of Victorian fire services and so policies issued on or after this date will not include any amounts referable to the Victorian fire services levy.
During the 12 months leading up to 1 July 2013, Allianz will adjust the relevant rates of FSL applied to applicable policies. The timing and amount of the adjustments to FSL rates during this year will be based on the objective of minimising to the greatest extent possible any over- or under-collection of the total amount of FSL Allianz will be required to contribute to the fire authorities for the 2012-13 financial year.
FSL on premiums paid by monthly instalment
The funds collected from FSL charges on policies commencing during the 2012-13 financial year (1 July 2012 to 30 June 2013) are used to meet Allianz’s funding obligations to the Victorian Fire Services for that period.
The FSL is an annual charge that is calculated and applied to the premium as at the date of commencement of a policy. The amount of FSL is unaffected by whether the premium is paid in full at the time of renewal or whether the premium is paid through monthly instalments. Thus, an insurer’s contribution to the fire services is, other things being equal, the same regardless of whether a policyholder pays their insurance premium in a single payment or by monthly instalments.
From 1 July 2013, insurers will no longer be required to contribute to the funding of Victorian fire services and so policies which commence on or after this date will not include an FSL charge. However, in the lead up to 1 July, it would be inequitable if some policyholders were able to avoid contributing their fair share of FSL simply because they pay their premium by instalments rather than in full at the time of renewal.
Therefore if you're paying your premium in instalments and the policy was issued prior to 1 July 2013, any FSL component will be collected through all of the instalments during the period of insurance (normally 12 months), even though some of those instalments may only become payable after 1 July 2013.
Enquires and Complaints
If, in relation to their insurance policy, any Allianz customers have further enquiries or wish to make a complaint in relation to the Victorian Fire Services Levy, please phone the Allianz Call Centre on 13 1000.