1. Are insurance companies required to declare the fee to the customer ?.
Kindly refer to the Insurance Act Cap 21.11 section 228 (3) which states
“Every insurer shall pay to the Accountant General a registration fee of two dollars for every one thousand dollars worth of insurance up to a maximum registration fee of thirty dollars per policy in respect of any insurance policy issued or applicable in Saint Christopher and Nevis.”
2. Will a change in the policy affect the registration fee ?.
Once the endorsement does not result in a change in the value of the policy, the registration fee would not be changed. However, on renewal of policies the registration fee is applicable.
3. How is fee to be described on the invoice?.
Kindly refer to the Insurance Act Cap 21.11 section 228 (3) which states
“Every insurer shall pay to the Accountant General a registration fee of two dollars for every one thousand dollars worth of insurance up to a maximum registration fee of thirty dollars per policy in respect of any insurance policy issued or applicable in Saint Christopher and Nevis.”
4. Is the fee based on payments received or billings?.
The insurance registration fee is based on the value of the policy issued.
5. Is the registration fee to be paid upfront or when payments are received ?.
The insurance registration fee is paid to the Department in the period in which the policy was issued. For example, policies issued in October 2019 would be reported on the tax return covering the period 01 September – 30 November 2019 due December 16, 2019.
6. If after the payment of the registration fee, a policy is cancelled (for example non-payment; sale of motor vehicle). Is it that on cancellation there will be a refund ?.
No, the insurance registration fee is not refundable on cancelled polices.
7. What are the instructions where there is no sum insured (e.g. Motor Third Party Policies)?
For third party policies that do not carry a policy value , the registration fee will be paid on the maximum liability the insurer will cover on the third party policy.
8. How is the fee calculated.
Example: The sum insured is $14,600 (14.6). The correct calculation of the tax: 14 x $2.00 = $28.00. The registration fee for sum insured of $14,600 is 28.00.
9. What is the registration fee payable on? Premium income or sum insured.
The fee is payable on the sum insured (Value of policy).
10. Third party policies do not have a sum insured. What is the registration fee paid on.
For third party policies that do not carry a policy value, the registration fee will be paid on the maximum liability the insurer will cover on the third party policy.
11. If insurance companies were to pay the registration fee for our third party policies on amount of our liability this will not be consistent with our comprehensive policies.
For comprehensive policies which carry a value, the registration fee would be payable on the policy value (sum insured).
12. Will this registration fee be payable only on new policies or all existing policies as well?
This fee is payable on any new policy and on any renewal of a policy. Section 22 of the
Insurance Act states:
(22) Effect of cancellation of registration
(2) For the purpose of subsection (1), an insurance company shall be treated as having entered into a new policy if a policy entered into prior to the date of the notification under section 23 is renewed or varied after that date.
13. Is the Two Dollars ($2.00) per Thousand Insurance Registration Fee to be paid on Policy Premiums or Policy Values?
The registration fee is paid on the value of the policy.
14. If Policy Values, kindly state how the Third Party Insurance Registration Fees are to be determined as Third Party Policies do not carry any values.
For third party policies that do not carry a policy value, the registration fee will be paid on the maximum liability the insurer will cover on the third-party policy.