St. John’s, NL – The Insurance Brokers Association of Newfoundland (IBAN) has received clarification from the Government of Newfoundland and Labrador that the reinstatement of the 15% Retail Sales Tax (RST) on insurance premiums will apply only to property and casualty (P&C) insurance policies issued or renewed on or after July 1, 2016.
"While IBAN is disappointed that consumers will be taxed for protecting their assets, we understand the difficult financial situation facing the province," said Kent Rowe, President of IBAN. "We have been working to confirm how the tax will be implemented in order to provide clarification and direction to our members and our clients."
To date, IBAN has confirmed that:
Insurance policy renewal notices are typically issued 60 days prior to the renewal date. This means consumers receiving renewal notices in the coming days and weeks for policies taking effect on or after July 1, 2016 will see the RST reflected on those renewals. Consumers who may have received renewal notices will receive updated information on the RST application from their broker shortly.
“We appreciate the pressure on consumers to manage finances during this challenging time and have diligently worked to clarify outstanding details on their behalf,” added Rowe. “We encourage consumers to contact their broker to discuss questions and ensure they have the appropriate coverage for their property and vehicles going forward.”
About Insurance Brokers Association of Newfoundland (IBAN)
IBAN is an association of all major insurance brokerages operating in Newfoundland and Labrador, employing more than 1,300 people across the province. IBAN is a member of the Insurance Brokers Association of Canada (IBAC), which represents more than 30,000 brokers across the country. Insurance brokers work on consumers’ behalf to secure the best coverage in the market from the most trusted and secure federally regulated insurance companies.
For more information, contact:
Kent Rowe, President
753-3210 x 375