The French contribution to Common Fund for Victims of Terrorism is expected to increase in 2016. Although the new rate and the effective date are yet to be confirmed, FiscalReps understands that the announcement should be made in the forthcoming months. It is expected that the contribution will increase from the current rate of €3.30 to at least €4.00 per chargeable contract with a more probable increase to €4.30 per contract.
The Fonds de Garantie, the organisation that administers this contribution alongside other contributions such as specific contributions due on motor third party liability contracts, had officially requested the rate to be increased to €4.00 per chargeable contract; however the final rate increase will be approved and confirmed by the French Ministry of Finance in the Annual Ministerial Decree. According to the Fonds de Garantie, 73 million insurance contracts are subject to the contribution every year. The current rate of €3.30 per contract has been in place since 1 January 2004.