The French contribution to Common Fund for Victims of Terrorism will increase to EUR 4.30 per contract on 1 January 2016.
The new rate has been officialised by Ministerial Decree on 30 October 2015 and should apply on contracts issued on or after 1 January 2016. As this contribution is a fixed fee per contract, it is understood by the Fonds de Garantie (FGA) that it is normally applied on the first instalment and as such the FGA will not expect the old rate to be applied on 2016 returns.
The FGA, the organization that manages 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 EUR 5.20 per contract earlier this year. The demand has then been accepted by the Ministry of finance but with a lower rate of EUR 4.30.
By way of background the Terrorism contribution is due once a year on insurance contracts covering classes of insurance 3 to 9. According to the FGA, the number of contracts subject to that contribution is around 73 million contracts per year. The current rate of EUR 3.30 per contract has been in place since 1 January 2004.
For more details, please contact Christophe Bourdaire:
t: +44 (0)20 7036 8070