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I am not the full bottle on Tasmanian strata act
However looking at the act
A couple of things I can say.
The body corporate is required to take out insurance for the property. Your mother may take out insurance for contents, but the building is insured by the body corporate. I can’t understand how she is even able to take out separate insurance as she is not the owner of the property. Insurance companies generally do not provide building insurance cover for individuals in strata.
If the majority of owners want a strata managed then that is what will prevail. From what you say it seems that the strata is not being managed in accordance with the act and hence may benefit from a strata manager.
The maintenance does not need to be done by the strata manager. In fact they usually get contractors to carry out repairs. The owners can choose the strata contractors or continue to use whoever does it now.