Blog Question – ISR Crime Split

I received this question today.

Hi Allan,

I work in the insurance industry and I have recently come across my first crime split ISR policy. Are you able to provide me with your experiences with these policies do you see them as the future way of ISR policies being written?

Kind Regards,

Karina [surname and email provided]

My response was:

Good afternoon Karina.

The principle behind crime spliting an ISR policy is to split the premium between the fire and extraneous perils which attract fire service levy (“FSL”) and the crime and non-fire related perils which do not attract the FSL.

It is only really done where there a lot of assets or BI in states that still have FSL such as Victoria, NSW and Tasmania. Remember that GST and Stamp Duty are also payable on the FSL and so the amount of premium can be quite large.

As you probably know, this is the last year for FSL in Victoria and New South Wales are looking to remove it as well and with this I would expect the days of crime splits which only create more admin work for brokers and insurers will be over.

I hope this explains what you were looking for.



Karina wrote back:

Hi Allan,

Thank you for your response I truly appreciate your time.

Kind Regards,


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