I also think we should also refer to:
“STRATA SCHEMES MANAGEMENT ACT 1996 – SECT 92
Insurance claim where owner at fault
92 Insurance claim where owner at fault
If an insurer of an owners corporation accepts a claim by the
owners corporation based on an act or omission by an owner of a lot, the insurer has no right of subrogation in relation to the owner based on that act or omission unless it is proved that the act or omission was wilful”.