We use cookies to give you the best possible experience on our website. By continuing to browse this site, you give consent for cookies to be used. For more details, please read our Online Terms & Conditions, Privacy Policy, Cookies Policy and Personal Information Collection Statement.
We recommend using a computer web browser or Hang Seng Mobile App to log on for enhanced security. Please visit "Security Information Centre" for more security tips.
Effective from 1 January 2018, the Insurance Authority (“IA”) imposed a prescribed levy on your insurance policy pursuant to section 134 of the Insurance Ordinance (Cap. 41). Such levy payment should be made together with the premium payment to the insurer for direct remittance to the IA within the remittance period as specified by the IA.
Subject to the applicable levy cap, the amount of levy payable for each premium payment is the amount of premium multiplied by the applicable levy rate as prescribed in the table below:
| Policy effective date or policy anniversary date which marks the beginning of a policy year | Levy Rate % | Levy Cap in HKD | |
|---|---|---|---|
| Specified General Business (General Insurance) |
Specified Long Term Business (Life Insurance) |
||
From 1 January 2018 till 31 March 2019 (both dates inclusive) |
0.040% |
HKD2,000 |
HKD40 |
From 1 April 2019 till 31 March 2020 (both dates inclusive) |
0.060% |
HKD3,000 |
HKD60 |
From 1 April 2020 till 31 March 2021 (both dates inclusive) |
0.085% |
HKD4,250 |
HKD85 |
From 1 April 2021 onwards (date inclusive) |
0.100% |
HKD5,000 |
HKD100 |
For more details about the levy matter, please refer to the Frequently Asked Question or you may visit www.ia.org.hk/en/levy
Levy is collected by Hang Seng Insurance Company Limited ("Hang Seng Insurance") on behalf of the IA.
Life insurance: The life insurance plans are underwritten by Hang Seng Insurance which is authorised and regulated in Hong Kong by the Insurance Authority. Hang Seng Bank Limited (“Hang Seng Bank”) is an insurance agent authorised by Hang Seng Insurance for the distribution of the plans.
IA levy collected by the Insurance Authority has been imposed on relevant policy (except for certain exempted insurance classes) at the applicable rate and would be remitted in accordance with the prescribed arrangements. For further information, please visit www.ia.org.hk.
New and renewing customers will need to pay the prescribed levy together with the subscription for each insurance contract. HSBC Life will then remit the levy payment to the IA.
To learn more about the levy, please visit the website of the IA at www.ia.org.hk.
Medical insurance: The medical insurance plans are underwritten by HSBC Life, which is authorised and regulated by the Insurance Authority in Hong Kong. We're the insurance agency authorised by HSBC Life for the distribution of the Voluntary Health Insurance Plan series and group schemes.
The costs for establishing and operating the Insurance Authority (IA) in its initial years are being covered by government funding. In the long run, the IA has to be financially independent and recover its operating costs through a premium levy from policy holders and fees payable by insurance companies, intermediaries and users for specific services. Starting from 1 January 2018, the IA will collect a levy on insurance premiums from policy holders through insurance companies. The levy rate in the first phase will be 0.04% of the insurance premium and there will be a levy cap. Policy holders must pay the levy in accordance with the law. For details of the levy matter, please visit www.ia.org.hk/en/levy
The law provides for the IA to collect premium levy from policy holders in an incremental approach with levy caps to reduce the impact on policy holders.
Effective from 1 January 2018, the Insurance Authority imposed a prescribed levy on all new or in-force life insurance policies and general insurance policies pursuant to section 134 of the Insurance Ordinance (Cap. 41).
The law stipulates that premium levy is applicable to new or in-force policies with inception date or policy anniversary date on or after 1 January 2018.
Policy holders of all new or in-force life insurance policies and general insurance policies must pay the levy along with their premium payment. Reinsurance business, policies underwritten by authorized captive insurers, and marine, aviation and goods-in-transit business are exempt from the levy.
No. The Insurance (Levy) Regulation stipulates that policy holders must pay the levy to insurance companies.
To avoid unintended termination of the policy, insurance companies will not deduct the levy from the premium. The above scenario will result in non-payment of levy. If a policy holder does not pay the required levy, the IA may impose on the policy holder a pecuniary penalty of up to $5,000. The IA may recover outstanding levy as a civil debt due to it.
Policy holders of all new or in-force life insurance policies and general insurance policies must pay the levy along with their premium payment. Reinsurance business, policies underwritten by authorized captive insurers, and marine, aviation and goods-in-transit business are exempt from the levy. If a policy holder does not pay the required levy, the IA may impose on the policy holder a pecuniary penalty of up to $5,000. The IA may recover the outstanding levy as a civil debt due to it.
Insurance companies must submit audited annual remittance reports to the IA, as required by the law. If an insurance company has collected excessive levy from a policy holder, the IA may impose on the insurance company a pecuniary penalty of up to $10,000.
Policy holders can enjoy full refund of levy for policies cancelled during the cooling-off period, no matter a full refund of premium is made or not.
Refund of levy is allowed if the corresponding premium becomes refundable. However, cancellation of policies that do not constitute any premium refund do not necessitate the refund of levy.
If a policy holder does not pay the required levy, the IA may impose on the policy holder a pecuniary penalty of up to $5,000. The IA may recover the outstanding levy as a civil debt due to it.
IA will collect levy from the following insurance features:
1. Automatic premium loan
2. Premium for ILAS
3. Premium for Universal Life
4.Premium offset by dividend
IA will not collect levy from the following insurance features:
5.Extended term insurance
6.Paid up addition
7.Premium holiday
8.Reduced paid up
You'll need to pay the levy together with the premium payment, and you can pay the premium via autopay using either your bank account or credit card. If you choose to set up a direct debit, HSBC Life will send you a pre-authorisation letter seeking your agreement to collect premiums and levies from your designated bank account or credit card.
If you are the applicant of new policy, your insurance sales consultant will advise the total payable amount. If you are the member of existing policy, the total payable amount will be shown in the Subscription Invoice enclosed with your renewal pack.
Customer can refer to the Subscription and Levy Details or Subscription and Levy Invoice in which the premium and levy amount will be stated.
Levy shall be paid according to the monthly or annual payment mode together with the premium to Chubb Insurance Hong Kong Limited (“Chubb”) and then paid directly to IA. Subsequent premium payments will also be subject to the levy. For policy renewal with premium paid via autopay services, Chubb will debit the premium due together with applicable levy from the designated bank account or credit card.
For new policies with inception date on or after 1 October 2018, the levy payable will be indicated on Hang Seng website and Hang Seng Personal e-banking site for online application, or on relevant product leaflet and proposal form for branch application, and also mentioned during the selling process for phone application. As for renewal policies, the levy payable will be indicated on policy schedule and debit note. You can find out the prescribed amount by following link www.ia.org.hk/en/levy.
Premium payment and levy applicable will be indicated on the debit note or payment page of online application. For details of applicable levy rate, policyholder may refer to Insurance Authority website www.ia.org.hk/en/levy.