From 1 January 2018 onwards, a levy on insurance premiums for insurance policies will be payable to the Insurance Authority by policyowners via insurance company under Insurance (Levy) Order and Insurance (Levy) Regulation in order to support the operational cost of IA. Levy is calculated based on the levy rate on the premium payable per policy. There is a levy cap per policy per policy year.
New business: Any policies with policy inception date (which is the Commencing Date in the Certificate of Life Assurance) on or after 1 Jan 2018 are subject to levy.
In force policy: For all in force and premium paying policies, first levy is payable for the policy when it reaches its anniversary date in 2018.
Levy has to be paid when the premium is paid. Policyowner must pay levy together with premium. Policyowners shall commit an offence and be liable to a pecuniary penalty not exceeding HK$5,000 for failure to pay the levy in a timely manner.
Prudential will issue written notification to existing clients for levy between Oct and Dec 2017 to notify the levy arrangement.
Premium Notice, Premium Reminder and Overdue Notice will list out the total sum of premium and levy payable to facilitate policyowner to arrange payment. myPrudential will be enhanced to show the total payable (including premium and levy payable) to ease policyowner reference. And Policy Anniversary Statement will display the premium and levy amount separately.
Cannot. Under Insurance (Levy) Order and Insurance (Levy) Regulation, policyowner have to pay levy to Insurance Authority via insurance company.
You may request to reset the withdrawal limit with the bank, change autopay account, or change payment method for for future premium and levy.
Levy is subject to administrative fee if you use overseas credit card for premium and levy.
Levy will not affect your insurance coverage or return.
Implementation of levy does not affect the continuity of insurance coverage. If you pay premium only without levy, policy will not be terminated. However, Policyowners shall commit an offence and be liable to a pecuniary penalty not exceeding HK$5,000 for failure to pay the levy in a timely manner.
If the policy change request incurs a premium adjustment, the difference in premium will be subject to levy. Furthermore, the policy change request will only be completed upon settlement of all outstanding levy, if any.
Prudential shall deduct levy by Automatic Premium Loan ("APL") if any renewal premium of the policy is being paid by APL and such levy shall be part of APL on which interest shall be charged in accordance with the policy provisions. However, if the cash value of the policy is insufficient to settle both premium and levy, only premium will be deducted by APL. You have to settle all levies separately.
No. According to the law, policyowner must pay levy when premium is paid, therefore, policyholder is not able to pay levy in advance, except that advance levy is paid together with the advance premium.
Prudential Corporation Asia
VHIS Provider Registration No: 00026
(effective from 28 February 2019)
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