Victoria’s Fire Services Levy (FSL) Monitor Allan Fels will give brokers a month’s amnesty to ensure they have not applied the charge following its abolition on July 1 last year.

He says brokers have until October 31 to refund policyholders.

Professor Fels says at least 20 brokers have been involved in, or potentially involved in, charging the FSL after it was removed, with most cases relating to cover for construction projects that started in the 2012/13 financial year.

Policies were adjusted due to changes in estimates of amounts insured upon completion of the projects or the period of the building works, extending past July 1 last year.

In one case, the FSL was being charged 11 months after abolition.

“I’m not satisfied the brokers concerned have paid sufficient attention to their obligations under the law to avoid charging the FSL after June 30 2013,” Professor Fels said.

He has written to 20 brokers and six insurers that provided cover.

The National Insurance Brokers Association (NIBA) has alerted members to the amnesty.

CEO Dallas Booth says brokers have time to identify any discrepancies.

“We understand the numbers [overcharging] are quite low, but it is an opportunity for brokers to review transactions and correct any errors that have occurred,” he told insuranceNEWS.com.au.

Oversight of the FSL’s removal is in its final stage, with the monitor’s role due to finish on December 31.

Mr Booth says NIBA campaigned for the levy’s removal for many years.

Corporations can be fined up to $10 million for overcharging and individuals can be fined $500,000. Professor Fels says whether overcharging is negligent or inadvertent is irrelevant to determining a breach of the law.