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‘Double charging’ worries callers to FSL Monitor

The Victorian Fire Services Levy (FSL) Monitor’s office received 578 calls to its hotline between its launch on January 30 and March 31.

Policyholders who feared being charged the levy twice this year accounted for 48% of calls, while concerns about FSL rate rises made up 5%, according to monitor Allan Fels’ first report to Consumer Affairs Minister Heidi Victoria.

The report notes that before January 30, when Consumer Affairs Victoria was fielding calls, about 44% concerned increases.

Insurers raised their FSL rates early last fiscal year but most removed the levy in February, indicating they had already collected their estimated year’s contribution.

“This suggests their early FSL rate increases could have been smaller while still allowing a tapering of their FSL rates to 0% by the end of the financial year,” the report says.

The monitor says insurers’ communication with policyholders about levy changes has been “limited and inadequate”.

The office’s media strategy conveyed the message that “the monitor is putting insurers on notice that they will be closely scrutinised in relation to their conduct, and any action that appears to be a potential breach of the [removal legislation] will be investigated”.

It says it aimed to inform and educate policyholders and insurers about their rights and obligations as the FSL was replaced by a charge on property owners.

At the end of the March quarter, the office’s full-time staff comprised a director, three price monitoring staff, a communications adviser, a compliance and enforcement adviser and an administrative officer.