AGY-7205 | Emergency Services Levy Insurance Monitor

Full description

The Emergency Services Levy Insurance Monitor was established on 7 June 2016 under the Emergency Services Levy Insurance Monitor Act 2016 (Act No.23, 2016). (1)

The Insurance Monitor was established as an independent body to oversee the removal of the ESL (Emergency Services Levy) from regulated contracts of insurance from 1 July 2017. The ESL was replaced by the Fire and Emergency Services Levy (FESL). All land holders will be charged the FESL which will be payable alongside local council rates. This system brought New South Wales into line with all other mainland States, which had already moved away from an insurance-based levy to a land-based levy. A fundamental purpose of the Insurance Monitor was to ensure that the full impact of the abolition of the insurance-based funding was passed on to policyholders in the form of lower insurance premiums. (2)

The Monitor had the following functions: (a) to provide information, advice and guidance in relation to the emergency services levy reform and prohibited conduct, (b) to monitor prohibited conduct and compliance with this Act and the regulations, (c) to monitor prices for the issue of regulated contracts of insurance, (d) to monitor the impact of the emergency services levy reform on the insurance industry and levels of insurance coverage, (e) to prepare and publish guidelines relating to the operation and enforcement of this Act and the regulations, (f) to receive complaints about prohibited conduct and to deal with them in accordance with this Act, (g) to investigate and institute proceedings in respect of prohibited conduct or any contravention of this Act or the regulations. (3) The Act (and the Monitor) was legislated to be repealed on 1 January 2019. This date was updated to be repealed on 1 July 2020 or on a later date as appointed by the regulations. (4)

On the 1 July 2020, the Emergency Services Levy Insurance Monitor was abolished at the repeal of the Emergency Services Levy Insurance Monitor Act 2016. (4)

Endnotes
1. Emergency Services Levy Insurance Monitor Act 2016 (Act No.23, 2016), s.5; NSW Government Gazette No.47, 10 June 2016, p.1318.
2. NSW Government Gazette No.46, 7 April 2017, p.1189.
3. Ibid, s.9.
4. Emergency Services Levy Act 2017 (Act No.32, 2017), Sch.3, s.20.
4. Emergency Services Levy Insurance Monitor Act 2016 (Act No.23 2016), s.79.