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Submitted by admin on Wed, 05/10/2017 - 05:25

Guidelines 

The Emergency Services Levy Insurance Monitor (ESLIM) will be closely monitoring pricing by insurers during the period of transition from an insurance-based levy to a property-based levy, ensuring policy holders receive the full benefit of the removal of the Emergency Services Levy (ESL) from policies.

Under section 21 of the Act, the Monitor has the ability to issue guidelines to insurers about when conduct may be regarded as constituting prohibited conduct. Two separate guidelines have been issued: 1, Guidelines on the prohibition against price exploitation, and 2, Guidelines on the prohibition on engaging in false or misleading conduct in relation to the emergency services levy reform.  The Guidelines provide advice to insurers on how to avoid breaching the Act.  Substantial penalties exist for breach of the Act, including penalties of up to $10 million for a body corporate and $500,000 for an individual.

Prior to issuing the final guidelines, the Monitor undertook a community consultation process.  A letter was sent to all insurance companies that contribute to the ESL outlining the proposed guidelines and inviting discussions to help clarify intentions and provide greater certainty. The feedback received assisted the Monitor in preparing the final Guidelines, which are attached below. 

Guidelines effective:9 September 2016. Revised Guidelines on the prohibition against price exploitation issued 28 April 2017.

  • 9 September 2016

    Guidelines on the prohibition against price exploitation and Guidelines on false or misleading conduct in relation to the emergency services levy reform (attached above) published in NSW Government Gazette.

  • 12 April 2016

    Guidance letter sent to insurance companies [PDF size: 84KB]. 
    Response date: 6 May 2016

  • 5 July 2016

    Draft guidelines issued: Guidelines on the prohibition against price exploitation and Guidelines on false or misleading conduct in relation to the emergency services levy reform (attached above).
    Response date: 2 August 2016.

  • 2 August 2016

    Deadline for the receipt of submissions on the draft guidelines.

  • 9 September 2016

    Finalised Guidelines issued.

  • 28 April 2017

    Revised Guidelines on the prohibition against price exploitation issued.