NIBA warns brokers on FSL phase-out
The National Insurance Brokers Association (NIBA) has warned members to implement systems that guard against charging the Victorian fire services levy on policies renewed after July 1.
NIBA President David Wyner, Victorian Division Committee Chairman Mark Laudrum and CEO Dallas Booth met Deputy Fire Services Levy Monitor David Cousins last month after the monitor warned consumers who use brokers to check they are no longer charged the levy.
The monitor is investigating about 10 complaints concerning brokers.
The NIBA representatives pointed out brokers led the calls for levy reform, Mr Booth told insuranceNEWS.com.au.
The monitor has criticised the insurance industry for not providing enough information on the levy and its removal, but Mr Booth says brokers inform clients over the phone or in meetings.
NIBA has now prepared a flyer on the levy changes for brokers to give clients.
The levy legislation allows for fines of up to $10 million for false representation and misleading or deceptive conduct.
Mr Booth says even an inadvertent error would be a breach, so it is important brokers have systems in place to prevent the levy from being applied.