Update on Insurance Fraud by EC Committee Member ratified by Owners Corporation

› Forums › Strata Committees › Current Page

Create New Reply
  • Creator
    Topic
  • 08/11/2012 at 6:42 pm #8542 Reply | Quote
    HappyNow
    Flatchatter

      Update to my post a couple of months ago regarding an EC member claiming their legal costs through the Owners Corporation Liability Insurance after a ‘slapping’ incident.  They chose (rather than to have an AVO against them) to sign an undertaking to the court which acted in the same way as an AVO.  They then claimed their legal fees under Office Bearers Liability Insurance even though the EC, the OC and the Strata Managers stated in an AGM this was a private matter between 2 owners.

      Since escalating the matter to the insurance company, I then took the matter to the Financial Ombusdman Service. 

      Letter received from Financial Ombudsman Service dated 5th Nov 2012

      Dispute involves Office Bearers Liability Cover with XXX and conflict with EC Member.  EC Member sought reimbursement for legal fees from XXX insurance under Office Bearers Liability Policy.  I have disagreed with insurer’s decision to indemnify EC Member.

      FOS Jurisdiction state – may only consider a dispute in relation to a General Insurance Policy that is:
      a) Retail General Insurance Policy
      b) Residential Strata Title Insurance Product
      c) Small Business Insurance Product
      d) Medical indemnity insurance Product

      Residentail Strata Title Insurance Product means a policy insuring the body corporate of a strata title or company title building which is wholly occupied for residentail or small business purposes including:
      a) Strata Building
      b) Common Contents
      c) Personal Accident or Sickness for voluntary workers in or about the strata building or common property and excludes
      a) Professional Indemnity
      b) Public Liability
      c) Workers Compensation.

      THIS DOES NOT EXTEND TO DISPUTES INVOLVING OFFICE BEARER’S LIABILITY COVER.  WHILE THE DEFINITION DOES NOT STIPULATE IT, OFFICE BEARER LIABILITY IS SIMILAR IN NATURE TO THE EXCLUDED COVERS (SEE ABOVE)

      From the information provided, it appears?? that your dispute is only about the Office Bearers Liability Policy with XXX Insurance.  As a result, we are not able to consider your dispute.


      So, from what I ascertain from this, if you are an Office Bearer of a Strata then you are beyond reproach? 

      Does this mean an Office Bearer committing any sort of fraud including but not limited to Financial fraud will not be liable for any redress from the Financial Ombudsman or any other body?

      If that is the case, we are completely exposed in regards the levies and payments being made and approved by the Executive Committee.

      JT:  Should sonething be done regarding this loophole?

      If there is a loophole, it must be closed forthwith I believe

    • Creator
      Topic
    Reply To: Update on Insurance Fraud by EC Committee Member ratified by Owners Corporation
    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.

    You can use BBCodes to format your content.
    Your account can't use all available BBCodes, they will be stripped before saving.

    Your information:




    › Forums › Strata Committees › Current Page