The Financial Supervisory Commission (FSC) yesterday said it would continue discussions with the Ministry of Finance on making earthquake insurance tax-deductible to encourage more homeowners to purchase such policies.
Earthquake insurance covers damage to houses, personal belongings and living expenses during the transition period, the commission said.
The uninsured rate remained high at 65.23 percent as of the end of March — albeit lower than the 98 percent recorded in 1999, Insurance Bureau Deputy Director-General Wang Li-hui (王麗惠) told a news conference.
As it is difficult to make earthquake insurance compulsory, the commission has proposed making insurance premiums a deductible on homeowners’ income taxes to draw people’s attention, FSC Chairman Wellington Koo (顧立雄) said last month.
The commission has proposed that homeowners be allowed to deduct a maximum of NT$2,000, but the ministry has expressed reservations, Wang said.
“The ministry said it would evaluate the impact on tax revenue. We will continue our efforts,” Wang said.
Homeowners in Hsinchu City, Taoyuan and New Taipei City lead in purchases of earthquake insurance in the nation, with the uninsured rate in the three cities dropping below 60 percent, Wang said.
The three cities are not high-risk areas for earthquakes, but their population density is higher than other areas, which might be one reason that residents there bought more insurance, she said.
Taipei ranked fourth in terms of insurance coverage, while only about 30 percent of homeowners in Hualien and Taitung have earthquake insurance, she said.
The coverage limit of earthquake insurance is set at NT$1.5 million, with an annual premium of NT$1,350 per person, but homeowners can increase their coverage by purchasing additional policies, the bureau said.
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