If it’s a dysfunctional committee that’s causing the problem, that’s also where the answer to this lies.
Run a case through Fair Trading and NCAT under section 232 (a) and (2) (below) for failure to comply with their statutory duties. Then run another case under Section 238 to have the backsliders and recalcitrants kicked off the committee for good.
To answer your question, NCAT will only fine the OC, but your local council might decide that living in an uninsured building is dangerous and declare the block unfit for habitation. It’d say it’s a long shot but they have the power to do that where NCAT doesn’t.
The Tribunal may, on application by an interested person, original owner or building manager, make an order to settle a complaint or dispute about …
(e) an exercise of, or failure to exercise, a function conferred or imposed by or under this Act or the by-laws of a strata scheme,
(2) Failure to exercise a function
For the purposes of this section, an owners corporation, strata committee or building management committee is taken not to have exercised a function if—
(a) it decides not to exercise the function, or
(b) application is made to it to exercise the function and it fails for 2 months after the making of the application to exercise the function in accordance with the application or to inform the applicant that it has decided not to exercise the function in accordance with the application.