Insurers are beginning to remove the Victorian fire services levy (FSL) entirely, a year after the outcry when charges of up to 95% were applied to commercial policies.

QBE, CGU and Lumley have named dates when they will stop applying the levy to policies, under staged withdrawals of the levy. Vero announced in December that it will drop the FSL on country policies from February 1.

QBE will remove the FSL on both new rural and metropolitan policies from April 20. From March 23 it will lower the levy to 12.5% from 50% for country commercial business and drop it altogether for rural householders, who are currently being levied 20%.

The rate for metropolitan commercial customers will drop to 15% from 45% in March and to 10% from 15% for households.

CGU reduced its rates in December and last week announced it would again reduce its FSL collection rate on both new and renewed policies from February 28 and drop the levy entirely on April 27.

From February 28, rural commercial rates will drop to 40% and rural homeowners’ to 10%.

Metropolitan commercial levies will be 35% and metropolitan homeowners will pay 10%.

The rates will drop again on March 31, to 30% for rural commercial and 8% for rural homeowners and to 25% for metropolitan commercial and 7% for metropolitan homeowners.

CGU says it is committed to collecting only enough FSL from customers to comply with its statutory obligations to pay the levy.

It will issue a supplementary product disclosure statement, not allow short-terming of policies and will not refund FSL except for specific cases such as sale of the asset.

Suncorp dropped the FSL on country commercial and household policies entirely on February 1 and has been gradually reducing the levy for metropolitan consumers.

Metro commercial policyholders paid 40% in January, 30% from this month and will pay 15% from March while metro householders paid 22% in January and in March will pay 15%.

Lumley’s rates at March 1 will be 46% for metropolitan commercial and 21% for households and landlords and for country commercial 21% and for households and landlords 10.5%.

On April 1, metropolitan commercial rates will fall to 45% and households/landlords to 20%.

Victorian country commercial rates will fall to 20% and the FSL will be dropped entirely for rural householders and landlords.

Last April insurers raised their levies, with many companies applying a levy of 95% to rural and 54% to metro commercial clients.

Many rural households were charged a levy of 46% and metropolitan households paid 28%.

The government-appointed Fire Services Levy Monitor is investigating consumers’ complaints about rises in the levy over the past few months.