#18645
Cosmo
Flatchatter

    @JimmyT said:
    The strata management industry is split over an issue that some claim could be the death of the small local operators across Australia.

    The question keenly debated at the Strata Community Australia (strata managers’) annual convention in  Perth two weeks ago was the payment of insurance commissions to strata managers.

    There are Government moves afoot to wipe this out and it seems to be a no-brainer.  Why should strata managers trouser 20 percent of an insurance premium just for getting their clients to sign up with a specific insurer?

    Are Owners Corporations getting the best coverage if their strata manager…

    Well it all depends upon what the strata manager does for their commission.  The experience of our OC was that when asked to sign a contract with a strata manager they recommended a certain insurer and disclosed that they would receive a commission (20%).  The strata manager’s contract then went on to state that the OC would be charged for the work the strata manager did in processing or other work on any insurance claim.  

    When we approached an insurance broker they also disclosed that they would get a 20% commission, however, the insurance broker’s contract provided that they would process our insurance claims without additional charge.  

    In the approximately six years we have had an insurance broker we have had only one claim but the insurance broker got us our full payout in quick time.

    Our experiences  with the same insurance company over the previous 15 years was that we had a hell of a time getting payouts and they took forever.  

    Having said that I realise the nature of claims can differ but I would have no hesitation in recommending a good insurance broker to OC that want to self manage.