Types of insurance
Duty is charged on the amount of the premium paid for a contract that effects general insurance and on a policy of life insurance.
General insurance refers to all insurance policies, with the exception of life insurance. It includes insurance applying to:
- property in Tasmania;
- risk, contingency or event concerning an act or omission that may occur within or partly within Tasmania; or
- trauma, disabling or incapacitating injury, sickness, condition or disease.
The affect of the
Terrorism Insurance Act 2003
Terrorism Insurance Act 2003 (the Terrorism Act) established a scheme for replacement terrorism insurance coverage for commercial property and business interruption. From 1 October 2003 additional monies, being premiums payable under the Terrorism Act, are collected by insurers.
The premiums collected pursuant to the Terrorism Act fall under the Duties Act definition of premium and attract duty. Insurers should ensure that the correct duty is returned to us.
Refer to the
General insurance premiums and the
Insurance Act 2003 guideline for further information.
Life insurance applies to:
- life/lives of a person whose principal place of residence is Tasmania;
- an event or contingency relating to or depending on a life (or lives) of a person (or persons) whose principal place of residence is Tasmania;
- a policy of mortgage insurance; or
- an annuity.
A policy of mortgage insurance is a temporary policy of life insurance effected on behalf of a borrower for the repayment of a loan in the event of death.
Accident insurance is not included in the definition of life insurance. A policy of accident insurance is insurance against death by accident or otherwise than from a natural cause, and is general insurance for the purposes of the Duties Act 2001.