Victorian Consolidated Legislation

Metropolitan Fire Brigades Act 1958 - SECT 44A

Contributions by owners and brokers

44A. Contributions by owners and brokers











(1) This section applies if property in the metropolitan district is insured
against fire with a person carrying on a business of insurance against fire,
not being an insurance company required to make a return under section 40.

(2) If this section applies, within 14 days after the owner of the property
insured has paid the premium-

   (a)  the insurance intermediary through whom the insurance is arranged; or

   (b)  if the insurance is not arranged through an insurance intermediary or
        is arranged through an insurance intermediary who does not carry on
        business in Victoria, the owner of the property insured-

must lodge with the Board a return in the prescribed form showing the portion
of the total amount of the premium paid to the insurance intermediary or
insurance company as is properly attributable to insurance against fire.
Penalty: 10 penalty units and an additional penalty of double the amount that
would have been payable under subsection (3) if subsection (3) had been
complied with.

(3) The insurance intermediary or owner of the property insured must within 14
days after the owner of the property insured has paid the premium pay to the
Board as a contribution an amount equal to together with an amount equal to
one per cent of the portion of the premium shown in the return lodged under
subsection (2).

Penalty: 10 penalty units and an additional penalty of double the amount that
would have been payable under this subsection if this subsection had been
complied with.

(3A) If the return under subsection (2) is lodged by an insurance
intermediary, the gross premiums shown in the return must-

   (a)  include any commissions or discounts;

   (b)  include a notional premium for deductibles of $10 000 or more
        calculated in accordance with the prescribed formula;

   (c)  exclude any amounts received or due to the insurance company in
        respect of re-insurance contracts or agreements.

(3B) If subsection (3A)(b) applies, the return must include the prescribed
details in the manner and form prescribed for the purposes of this subsection.

(3C) For the purposes of this section, the return must include as a discount
any reduction in gross premiums as a result of the use of net rating in
relevant policies of insurance against fire issued by the insurance
intermediary.

(3D) In subsection (3C), net rating means any practice or device adopted by an
insurance company involving the waiving of commission or brokerage by an
insurance intermediary which has the effect of reducing the premium payable to
the insurance company.

(4) In subsection (3)-

C is the total amount required to be contributed to the Board by insurance
companies under section 37 in the year in which the insurance is effected or
renewed;

P is the amount comprising the portion of the premium shown in the return
lodged under subsection (3);

T is the total amount of the portions of gross premiums shown in the returns
by insurance companies under section 40-

   (a)  for the previous preceding financial year, if the insurance is
        effected or renewed in the quarter of a financial year beginning 1
        July; or

   (b)  for the preceding financial year, if the insurance is effected or
        renewed in the quarter of a financial year beginning 1 October, 1
        January or 1 April.