11 January 2013

A new 0.8% monthly contribution will be due on motor liability insurance with effect from 1 July 2013.

 
The rate shall be reviewed on an annual basis up to a maximum of 1%. The contribution to the new Motor Premium Tax, whose name is yet to be released, will be borne by the policy holder and paid by the insurer to the Fonds de Garantie des Assurances Obligatoires de dommages (FGAO). The FGAO also administers the 1.2% National Guarantee Fund (NGF) that applies to motor liability insurance too.
 
By way of background, the French Parliament passed the 2012 Budget Act on 19th December 2012 that was subsequently published in the "Journal Officiel" on 30th December 2012. This introduced the Motor Premium Tax. The relevant legislation, the Insurance Code, will need to be updated to reflect these changes.
 
FiscalReps will keep you updated on any developments.