Instructions for Property Owners
Instructions for completing Statutory Returns for Property Owners 2012
SCHEDULE 3 - Section 44A Metropolitan Fire Brigades Act 1958
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 fees, where applicable terrorism premium, commissions and bonuses) paid to insurance company or insurance intermediary (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 62.35% - inclusive of the 1% on attachment date of the policy being in the period 1 July 2012 to 30 September 2012). MFB/CFA contribution rates prior to 1 July 2012 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 62.35% = $498.80).
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 the premium payment to the insurance intermediary or insurer, whichever occurs first.
(a) The term Property extends to include all contents, fixtures & fittings, stock, plant & equipment and Consequential Loss, Business Interruption insurances.
(b) 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.
(c) Where the policy covers multiple situations, a schedule of the situations should be attached.
(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 the payment of the premium to the underwrite/insurer.
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.
Funding Review of the Victorian Fire Services
The Victorian Government announced a move to a property based levy which is anticipated to commence on 1 July 2013.
In relation to transitional arrangements, no final decision has yet been announced by the Victorian Government, accordingly it is recommended that all contributors continue to adhere to the current funding model and comply with Victorian fire services Acts and Regulations.