The Emergency Services Levy Insurance Monitor has completed investigations of all accounts relating to companies registered for ESL contribution purposes. These investigations covered 161 accounts registered with the New South Wales Department of Justice (DOJ) for the 2015/16 and 2016/17 financial years (first tranche), and 156 accounts registered with the Revenue NSW for the 2017/18 and 2018/19 financial years (second tranche).
The first tranche of over-collection investigations resulted in 32 insurance companies being assessed for just over $2.0 million of over-collected ESL, although $0.38 million of this was only recently assessed due to late reporting of previously undisclosed premiums by one entity. These funds have been either returned to policyholders or paid to the Chief Commissioner of State Revenue. Payments to the Chief Commissioner have the effect of reducing the insurance contribution target for fire and emergency services in a future year.
The second tranche of over-collection investigations resulted in 87 insurance companies being assessed for approximately $12.7 million of over-collected ESL.
|Year||ESL Collected (as declared to the Monitor)||Insurance Contribution target||No. entities assessed for net 2-year ESL over-collection||Amount of net 2-year ESL over-collection|
A refund undertaking sets out the terms and conditions agreed with the Insurance Monitor, under which an insurance company determined by the Monitor to have over-collected ESL will refund that amount to policyholders, or pay it to Revenue NSW for payment into the Consolidated Fund.
Where an insurance company conceded the existence of an over-collection amount, accepted liability for that amount and provided an appropriate refund proposal, the refund proposal formed the basis of a refund undertaking accepted by the Monitor under section 31H of the Act. If breached, refund undertakings are enforceable by the Monitor in the New South Wales Supreme Court.
A refund undertaking register is available on this website.