The French contribution to the Common Fund for Victims of Terrorism will increase from EUR 4.30 to EUR 5.90 per contract from 01 January 2017. The increase has been confirmed by Juliette Méadel, the Minister in charge of the Aid to Victims on 19 October 2016. It is expected that the rate increase will add EUR 140 million of revenue to the Common fund for Victims of Terrorism (FGTI) and support the long term financial support to these victims, according to Juliette Méadel. Indeed for the first time since its creation in 1986, it is anticipated that the FGTI could finish the year in deficit.

In order to be effective, the new rate will now need to be ratified through a Ministerial Decree whose publication is expected in the coming weeks. It is worth adding that this increase is lower than previously expected. In the summer, there were talks to increase the contribution to EUR 6.50 per contract, which is the maximum increase that a government can apply without requiring to pass a law.

By way of background the Terrorism contribution is due once a year on insurance contracts covering classes of insurance 3 to 9.
 
 
For further information on any of the above issues, please contact: Christophe Bourdaire at christophe.bourdaire@fiscalreps.com