The Insurance Council of New Zealand has announced its support of the government’s decision to exempt travel insurance and insurance on certain types of property from having to pay the Fire Service Levy.
Insurance Council Chief Executive Tim Grafton said while the body opposes using insurance levies for the public good, the Insurance Council was “pleased to see common sense reign on the decision.”
“Without this decision, people who took out travel insurance to holiday overseas would have been taxed even though there was no way the FENZ would have provided any service at all,” Grafton said. “Ironically, most people buy travel insurance to cover themselves for health costs, theft and cancellations, none of which involve the FENZ.”
According to Grafton, the need for an exemption arose following requirements by the act to tax any insurance policy that covers people for material damage to property.
“Travel insurance does cover people for damage to property amongst many other things,” he said. “We now expect a similar common sense approach to apply to liability insurance, which provides cover for any loss, not just material damage, to third parties.”
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