Following recommendations from the 2009 Bushfire Royal Commission, the Victorian Government will abolish the Fire Services Levy (FSL) charge from insurance premiums with effect from 1 July 2013 and replace with a property levy that will not form part of the insurance premium.

The Victorian Government requires insurers to pay a Fire Services Levy each financial year and all insurers are required to meet their full obligations for the 2012/13 financial year.

The Fire Service Levy component of insurance premiums relates to the financial year the policy was taken out and not to the policy period.

To ensure Axis Underwriting can meet FSL collection obligations, we have determined that Metropolitan and Country Fire Authority FSL charges should be revised.

The following new rates will be implemented with effect from 1 February, 2013:-

Product Current New
Victoria – Metro
Fire | ISR | Consequential Loss  51%  42%
Bed and Breakfast  22%  20%
Victoria – Country
Fire | ISR | Consequential Loss  72%  47%
Bed and Breakfast  35%  27%

We will review our FSL collection on a regular basis through the financial year to ascertain any possible adjustments, however, further steps to ensure we meet our FSL collection obligations include:

FSL refunds will not apply to cancellations except where

  • there is a full cancellation (i.e. from inception of cover or within the cooling-off period)
  • Axis cancels the cover where we are permitted to do so.

Due date extensions will not be permitted.

Amendment to your policy wording:

The following endorsement is added to your policy:

Cancellation:

If You cancel this Policy for any reason, where You are entitled to a refund under General Conditions.  Cancellation the premium component relating to Victorian Fire Services Levy will not be refunded to You.