Motor Insurance Levy
Tue Oct 23 2018
From 1st December 2018 Additional 2% Government Levy to be Applied on all Motor Insurance Policies.
A new 2% levy will apply on all motor insurance policies from 1st December 2018.
This comes from the Insurance (Amendment) Act 2018, which was signed into law in September resulting in an additional 2% levy on all motor insurance policies (including commercial, fleet etc) to be charged to a new compensation fund; Motor Insurers Insolvency Compensation Fund (MIICF).
This 2% is in addition to the existing levies required to be applied.
However, due to the short lead in time to implement this change, it currently appears that the additional levy may not be reflected separately in Insurer renewal and New Business Quote documentation.
Meanwhile, we suggest you amend your motor letter templates to advise that an additional government levy of 2% will be included in the premium for all motor policies from 1st December onwards.
We will keep you updated as further developments occur.
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