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2017/2018 Fire Service & Earthquake Commission Levy Increase

Premium changes

There are several different components that make up your premiums: the Trade Me Insurance premium, levies we collect on behalf of the Government, and GST.

The Government levies for Fire and Emergency New Zealand (FENZ) and the Earthquake Commission (EQC) are increasing. Your premium will include the new levy amounts.


Fire and Emergency New Zealand

From 1 July 2017, The New Zealand Fire Service, National Rural Fire Authority and 38 rural fire authorities will merge to become one organisation – Fire and Emergency New Zealand (FENZ).  The creation of FENZ will allow for a more coordinated fire and emergency service across New Zealand.


What is the Fire Levy?

The Fire Levy is paid on insurance for vehicles, contents and property – with the exception of Third Party car insurance. Fire Service Levies cover everything that a Fire Service does in addition to putting out fires; including educating the public, attending vehicle incidents and animal rescue among other things.


Why is the Fire Levy increasing?

To maintain the current level of services provided, and to establish FENZ over the next four years, the Fire Levy will be increasing from 1 July 2017. The Levy is the main source of funding for the new organisation.


How much is my Fire Levy increasing?

The table below will help you understand how much your levy has increased. If your Trade Me Insurance policy provides cover for fire damage, you’ll see a Fire Service Levy amount listed on your invoice. This is available to download online by logging into your My Insurance.


          2017/2018 levy increase                                


What does this mean for me


Motor vehicle policies such as:

Car Insurance Comprehensive or Third Party Fire & Theft

$8.45 flat rate An increase of $2.37 per vehicle per annum

Residential policies such as:

House Insurance and

Contents Insurance

10.60c per $100 insured

(insured amounts capped at $100,000 for residential buildings and $20,000 for contents)

Maximum levy payable per house is $106 and $21.20 for personal property

An increase of 3.0c per $100 insured

(a maximum increase of $30 per annum for residential buildings and $6 per annum for contents)

 You can also find more information on Fire Service Levies by visiting


What is the Earthquake Commission Levy?

The Earthquake Commission Levy (EQC) covers earthquake and other natural disaster cover. This covers the first $100,000 (plus GST) of house damage, the first $20,000 (plus GST) of contents damage and damage to associated residential land, which is not covered by Trade Me Insurance.


Why is the EQC Levies increasing?

Our Government has made a decision to increase the EQC Levy from 1 November 2017. The increase will be reflected on your premiums from your policy renewal date.

 EQC receives income from two sources:

  • Premiums
  • Investment income from money held in the Natural Disaster Fund

At this stage the EQC premium rate of 15 cents is below the break even costs of running the scheme in the long term. The Natural Disaster Fund has decreased significantly as EQC settles its claims from the Canterbury and Kaikoura earthquakes. Increasing the levies will help restore the Natural Disaster Fund.


How much is my EQC Levy increasing?

All house and contents policy levies will increase from 15c to 20c per $100 of insurance cover.

The levy will be capped at a maximum of $240 a year (for house and contents combined), up from the current maximum of $180. Please refer to the table below to help you understand the increases.


Pre 1 November 2017*

Post 1 November 2017*

House Insurance 



Contents Insurance



 *Levy amounts exclude GST


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