Instructions for Insurance Intermediaries(Brokers)
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SCHEDULE 3 - Section 44A Metropolitan Fire Brigades Act
INSTRUCTIONS – Insurance Intermediaries (Brokers)
Assuming that the policy of insurance is a class of insurance that is subject to contribution ie. Property, Construction, Domestic etc that covers the risk of fire then the following action is required to complete the form of Return to arrive at the contribution payable,
1) Where the total amount of the premium is required on the form insert the gross premium (including any administration fee’s, amounts relating to “net rating”, where applicable terrorism premium, commissions, bonuses and excluding that charged as FSL) (ie $1000) for any insurance of property located within the metropolitan fire district.
2) Ascertain from Schedule 4, reproduced on the rear of the attached form what portion of the above premium is subject to a contribution (in the case of this example 80%). Insert that percentage of the premium as the “portion of the total premium that is properly attributable to insurance against fire”. (ie $1000 x 80% = $800).
3) Multiply the above calculated amount by the rate of contribution payable, (Currently 66.46% - inclusive of the 1% and the attachment date of the policy is in the period 1 July 2011 to 30 September 2011). MFB/CFA contribution rates prior to 1 July 2011 can be viewed on the MFB website under “Information pack for insurance intermediaries and owners”. This will represent the amount of contribution “as required” to be inserted on the form and lodged with the Return. (ie $800 X 66.46%= $531.68).
4) Complete all other sections of the return as required and lodge same with the Board together with a cheque in payment of the required contribution (as calculated above) within 14 days of receipt of the premium payment from your client.
Please note:
(a) The term Property extends to include all contents, fixtures & fittings, stock, plant & equipment and Consequential Loss, Business Interruption insurances.
(b) Where the policy covers multiple situations, a schedule of the risk locations should be attached.
(c) The contribution rate applicable is that which applied at the date the policy was effected or renewed. In the case of an extra premium the applicable rate is the rate at the attachment date of the endorsement. In relation to refunded premium, it is recommended the original contribution rate be applied.
(d) That a separate form of return is required for each individual premium payment to an overseas insurer.
(e) That the sum insured and premium is to relate specifically to property within the Metropolitan Fire District. All other premiums for property in the outer metropolitan and all country districts are to be returned to the Country Fire Authority. A copy of the MFB postcode listing is on the MFB website under “Metropolitan Fire District”.
(f) Deductibles/excesses – the deductible applicable to each risk location for the class of insurance for which the Return relates is to be included in the Return or on the schedule attaching to the Return. Please note; where multiple deductibles apply on the policy, only disclose that relevant to the fire/property section/cover.
(g) All monetary amounts are to be shown in Australian Dollars by use of the bank conversion rate applicable at the date of inception of the applicable policy transaction.
It is to be noted that the rate of contribution varies as from 1 July and 1 October each year, dependent on the amount of the contributions required and the total of all premiums returned by the insurance industry each year. Advice will be provided as each change occurs.