Last year, the NSW Government signaled plans to replace the Emergency Services Levy (ESL) paid on insurance, with a new Fire and Emergency Services Levy (FESL) which would be collected with council rates effective from 1 July 2017.
However, the NSW Government has since delayed these changes and on 30 May 2017 announced that insurers would again be required to collect ESL from policy holders, recommencing from 1 July 2017.
We've prepared some information about the update to the ESL and the impacts to your policy.
The ESL is a charge added by an insurance company to the cost of your property insurance to recover its required contribution to emergency services agencies in NSW. The ESL paid with any premium on a policy is used to fund emergency services in NSW in the financial year in which the policy commences.
In line with the original changes in 2016, we previously advised policy holders that we would be removing the ESL for all property insurance policies. However, given the deferral of the new FESL legislation, an ESL will be reintroduced on all NSW property insurance policies.
This change simply means that you will continue to pay the ESL on your insurance policy, rather than funding of NSW emergency services agencies through the proposed FESL in council rates.
If your policy has incurred a charge for the ESL, this amount is your contribution to the NSW emergency services for the financial year in which your policy commenced, and this amount will be outlined in your policy renewal ( if applicable).
Nothing. Simply follow the payment instructions provided with your renewal. The ESL will be collected with your policy and will be used to fund NSW emergency services. Your policy documentation will detail your contribution.
No. With the deferral of the FESL legislation, councils should not be charging the ESL yet as it will be collected via insurance policies.
If you have any questions about this change to your policy, please contact your CCI Client Relationship Executive on 1800 011 028.
If you would like more information on how the ESL is required to be collected by insurers, you can contact the Emergency Services Levy Insurance Monitor on 1300 607 723 or visit www.eslinsurancemonitor.nsw.gov.au
If you would like more information on the changes made to the ESL and FESL by the NSW Government, you can contact the NSW Treasury by email at FESL.firstname.lastname@example.org
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