Published in Insurance/Reinsurance Bulletin April, 2010.
The recently announced Budget closed a loophole in relation to premium insurance tax. This may result in an increase in the cost of insurance premiums paid by those seeking insurance. Although, consumers have been liable to pay 5% tax when purchasing insurance, it had been common practice to reduce this charge with the underwriters splitting the premiums between the insurance and other services not subject to the tax. This will no longer be possible as a result of the plan announced in the budget.
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