A small group of Victorian brokers face fines of up to $10 million after Victoria’s Fire Services Levy (FSL) Monitor said it is investigating complaints from people who say they were charged the levy after it was dropped from premiums on July 1.

Monitor Allan Fels says about 10 brokers face fines for giving consumers false and misleading information about the levy’s removal.

Last week the monitor placed advertisements telling consumers to check policies taken out through brokers.

Professor Fels says any broker which charges the FSL on premiums after July 1 is likely to have broken the law, including if they are party to an insurer charging the levy.

He says if consumers are in doubt “they should seek written confirmation from their brokers that the FSL has not been included in their premiums for policies after 1 July… and contact my office if they believe they have been hit with the charge”.

Refunding such charges will be a priority, according to he says.

National Insurance Brokers Association CEO Dallas Booth says he would be “very, very surprised” if brokers were still charging the levy, but the monitor has told him complaints have been received.

Mr Booth says if a broker places business with a foreign insurer, the broker may become primarily liable for the FSL, or if a broker invoices on behalf on an insurer, it may seem that the broker is charging the levy.

He says the association and Victorian brokers led calls for reform of the levy, which has been replaced by a property charge collected by councils.