Insurance Returns and Contributions

Country Area of Victoria

Inspections relating to the appropriate level of contribution payments, pertaining to the MFB Act 1958 and CFA Act 1958 (the Acts), regularly reveal errors regarding premiums.

The most persistent error relates to the incorrect declaration of premium to the respective Fire Service.

The following summary has been prepared to assist both Insurance Companies and Insurance Intermediaries (Brokers) and Owners, to accurately identify the fire service to which the Fire Levy is payable. To further assist the completion of returns and premiums, a listing of all postcodes considered to be located within the Metropolitan Fire District (MFD) is located under 'Postcodes'. Anything which does not appear on this listing is considered to be located in the Country Area of Victoria.

Postcodes are the agreed method of allocating areas on or near the boundary of the MFD. This has proven to be the most consistent and cost-effective method of calculating premium.

Please ensure that where the situation of the insured risk falls within the postcodes listed on the attachment, the total amount of the gross premium (including the “fire services levy”) that is subject to contribution, is allocated to the MFB. If the insured location is not on this listing, the gross premium is to be included in CFA’s Return.

For combined policies such as Industrial Special Risks, which insure properties located within the boundaries of both the MFB and CFA, the postcode data must be available for inspection for all locations insured.

For other Classes of Policy which are subject to contribution, where the insured risk is not static and the postcode system is inappropriate, the method to be used should provide a distribution which is realistic to the location and movement of insured items. Evidence of such allocation must be available for inspection.

It is advised that in respect to all other matters, insurers must lodge returns of premium with CFA strictly in accordance with the appropriate legislation.

Notes:

The boundary of the metropolitan fire district as amended from time to time is shown in "Melways Street Directory of Greater Melbourne" issue 24 onwards.

In the event of any dispute the boundary as proclaimed will prevail, as it does not coincide with postcode boundaries