Levy is payable on all contracts of insurance against the risk of fire where assets in New Zealand is covered. Levy is currently calculated at 7.6c per $100 sum insured. This is subject to upper limits & special calculations for a number of items such as residential buildings, domestic contents, motor vehicles (under 3.5T gross laden weight), marine cargo & contract works. Where the indemnity value of the assets is less than the sum insured, levy may be paid on the indemnity value of the assets insured.
GST is payable in addition to any amount of levy. The current rate of GST is 15%.
Levy payable on motor vehicles
Levy is payable at the flat rate of $6.08 per motor vehicle not exceeding 3.5T gross laden weight. Definitions of the terms are in the Land Transport Act and Road User Charges Act.
Levy on all other vehicles is calculated in the normal way.
Levy payable on residential buildings and residential contents
Please refer to our guide for definitions on these items.
Residential buildings are calculated at the normal levy rate to a maximum levy payable of $76
Residential contents is calculated at the normal levy rate to a maximum levy payable of $15.20
Levy payable on marine cargo
Policies that cover sendings within New Zealand, also known as marine cargo policies have levy calculated at the normal rate, but can be pro-rated to a minimum of 1 week e.g. 1/52 of levy payable.