Topic: Should we be getting two insurance quotes from our strata manager? – FLAT CHAT

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17/07/2019 at 10:51 am #38909 Reply | Quote
nojay
Flatchatter
I am an owner in a large (135 owners) Strata Scheme in NSW.

Our AGM is about to be held less than a month before our annual Strata Insurance falls due. But other than confirming that we have a current Strata Insurance policy in place, there is no item on the AGM Agenda asking the Owners to vote on COMPETITIVE QUOTES FOR STRATA INSURANCE for the next period of insurance. (Our annual Insurance is about $140,000.)

Our Strata Manager has advised me (in reply to a formal query from me) that Strata Insurance is “not required to be approved by way of General Meeting; quotations received from an Insurance Broker will be issued to the strata committee for review and approval.”

That advice seems to be in conflict with the requirement of Section 102 of the New South Wales SSM Act 2015 which, for large strata schemes, requires 2 quotes for any expenditure above $30,000.

This has been happening now for several years and the owners are left in the dark as about what deliberations (if any) the Committee and Strata Manager (who receives a commission from the Insurers) undertake before deciding on the preferred Insurer.

Has this question come up before? If so, what has been the consensus?
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Reply To: Reply #38945 in Should we be getting two insurance quotes from our strata manager?

PLEASE ... If your property is not in NSW, mention its location (state). Don't identify companies or individuals by name. Don't mention or promote your company or services. Keep acronyms and initials to a minimum. Please, don’t use “quote” unless there is a specific point to which you wish to refer, then highlight (define) that specific passage before you click on "quote". Otherwise just use reply. THANKS.