In accordance with the schedule set out in the Insurance (Levy) Order under the Insurance Ordinance , starting from 1 April 2021, the premium levy rate would be adjusted from 0.085% to 0.1% of the insurance premium per policy year. The levy cap would be adjusted from HK$85 to HK$100 for life insurance policies, and from HK$4,250 to HK$5,000 for general insurance policies.
Save for a few types of policies exempted by law, policy holders of all new or in-force life insurance policies and general insurance policies have to pay the levy together with their premium payment. The Insurance Authority (IA) collects the premium levies from policy holders through the insurance companies. The levies, together with other fees collected by the IA, are used to finance the IA’s operations.
For more information, please refer to the IA’s website.