The Strata Manager has advised this is not covered under OC insurance as the vehicle is not OC property. Question 1: has anyone had experience with this type of issue and what was the outcome? Question 2: where does the OC stand with respect to liability?
While it’s not OC common property, strata (OC/BC) compulsory insurance can cover more than OC common property. It can cover lot fixtures and fittings and OC liability for other damage. A car is not a lot fixture or a fitting, so it boils down to liability cover.
Q1: Yes. It usually depends on if the OC’s insurer considers the OC to be legally liable for the damage.
Q2: It usually needs negligence to be established. If the OC somehow negligently caused the leak, they would likely be liable. Else any other party that somehow negligently caused the leak would likely be liable.
That other negligent party might be a lot occupier who is not covered by the OC’s insurance (eg a tenant). But if the other negligent party was an owner occupier, they could independently try claiming on the OC’s insurance else on their own contents insurance.