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港險通Hong Kong Insurance Connect
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Information, not advice; we refer to a licensed Hong Kong broker.

Why is there an insurance levy on my premium?

Hong Kong Insurance Connect: The premium levy funds the Insurance Authority and is separate from insurer charges. Most life and general policies are covered, with exemptions. Refunds depend on the cancellation or premium-refund circumstances. Checked on . [C1, C2, C3]

Checked on · Public sources; general information, not advice.

Is the levy an insurer’s administration charge?

No. IA explains that premium levies help support its operating expenses and financial independence. Policyholders pay the levy through insurers. Ask for the premium notice to distinguish the premium, statutory levy and any insurer charge, rather than treating every extra line as a service fee. [C2]

Which policies and caps should I check?

IA states a levy rate of 0.1%. The stated caps are HK$100 for long-term insurance based on single or annualised premiums, and HK$5,000 for general insurance based on annual premiums. Employer-provided group life policies with medical protection follow the general insurance cap. For scheduled payments more than a year apart, the cap is adjusted proportionately. These cap amounts limit the levy, not premiums or benefits; ask the insurer to explain your payment-period calculation. [C1, C2]

Are all insurance contracts subject to the levy?

No. IA identifies exemptions for reinsurance, policies underwritten by authorized captive insurers, and marine, aviation and goods-in-transit insurance. Do not infer an exemption from the policyholder’s nationality or from a policy being bought for business use. Ask the insurer to identify the applicable exempt category if its notice shows no levy. [C1]

What happens if premiums are refunded?

IA’s collection note provides for a full levy refund when a policy is cancelled during its cooling-off period. Other premium refunds require the applicable calculation, including the cap: a partial premium refund may leave the levy unchanged where the remaining premium still attracts the maximum levy. Request separate premium and levy figures and the insurer’s explanation. This does not determine your policy’s premium refund or cancellation rights. [C3]

What do readers ask?

Does the levy fund the regulator?

Yes. IA identifies it as part of its funding arrangements. [C2]

Is the rate 0.1%?

That is the rate stated by IA; the applicable cap also matters. [C1, C2]

Is HK$100 the cap on my premium?

No. It is the stated levy cap for single or annualised long-term insurance premiums; longer payment intervals require a proportionate cap adjustment. [C2]

Do group medical life policies use the life cap?

Employer-provided group life policies with medical protection use the general insurance levy cap. [C1]

Are marine policies exempt?

Marine insurance is among the exemptions identified by IA. [C1]

Is the levy refundable during cooling-off?

IA’s collection note provides for a full levy refund on cooling-off cancellation. [C3]

Does every partial premium refund reduce the levy?

No. The cap can mean no levy refund is due; ask for the calculation. [C3]

Where can I read more or ask a process question?

How do I pay Hong Kong insurance premiums? How do I cancel during cooling-off? Country guides Trust checks Historical fulfillment ratios Life-stage hub Ask a general process question

We provide information and referrals to a licensed Hong Kong broker; regulated advice and arrangements belong with that broker. Mainland visitors must sign in Hong Kong. Do not send identity, tax or medical documents through the general enquiry form. [C4]

General information, not advice.

Where are the sources?

Checked on . Public official sources; linked documents remain on their publishers’ sites.

Information, not advice; we refer to a licensed Hong Kong broker.

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