Domina Insurance Brokers
BCiB

Victorian FSL Rise

The Royal Commission inquiry in to the tragic Victorian bushfires received 62 submissions from the insurance industry containing a number of recommendations. Among those recommendations:

  • Removing the Fire Services Levy (FSL) from insurance policies and replacing it with a fairer system of raising money for fire fighting. Insurers argue that the FSL substantially raises the final cost of insurance which may deter people from taking out insurance or insuring in full. In Victoria, the FSL rate is 84%, so by the time you add stamp duty and GST the cost of insurance is almost double what it should be.
  • Offering reductions in insurance costs to policy holders who fire proof their homes
Given that under insurance or lack of insurance is one area identified by the Royal Commission as an area of great concern, it is surprising then that the Victorian Government took the step to increase the FSL, making insurance even dearer.