CGU Insurance last week called upon the Victorian Government to implement a fairer funding
model for fire services that does not discriminate against property insurance holders.
Duncan West, Chief Executive Officer of CGU, said Victorians deserved a fair system for
funding our essential fire services, a view outlined in the company’s response to the Victorian
Government’s Green Paper - Fire Services and The Non-Insured.
“The current funding model for the Victorian fire services is grossly unfair. It unfairly penalises
the members of the community – those with property insurance – by enforcing them to carry
the burden of funding fire services for the broader community.
“The Fire Services Levy is applied to the total premium of property insurance policies. As
these policies are compiled after assessing numerous risks, not solely the risk of fire, it
creates an imbalance between funding levels and potential fire risks.
“The option of replacing the FSL with an across-the-board property tax is a step in the right
direction, but we believe it needs to go further to consider the responsibilities of motor vehicle
owners.
“CGU regularly hears first-hand how excessive taxes and charges on insurance impact our
customers and, in particular, how the resulting increased premiums can discourage people
from taking up full, or in fact any, insurance protection. We hear almost daily from customers
who make claims only to realise they were not adequately insured.
“CGU believes fire services should be funded through property rates and motor vehicle
registrations. This would more accurately reflect the 15 per cent of MFB callouts and 10 per
cent of CFA callouts attributed motor vehicles.
“Fire services are an essential component of a safe community, but the current funding
system is unfair, inadequate and inefficient.”
Media Relations – Sean Sampson (03) 9916 3414 / 0411 011 878
CGU's submission to the Victorian Government's Green Paper - Fire Services and The Non-Insured
CGU Media Release PDF