KP, what you say about chasing the bad debts is absolutely right but you lost me on your argument that the reason for the special levy is so that the strata manager can earn commissions.
Why would the special levy make any difference? It sounds like the Owners Corp doesn’t have the funds to meet its statutory obligations to insure the building and that money has to come from somewhere.
However, if some people aren’t paying their levies, then the special levy is only transferring the payment to those who are (and that’s money they won’t get back without a unanimous vote – which clearly ain’t going to happen).
I agree that the correct procedure is to chase the debt and there are plenty of companies that will do that for you without any extra charges being incurred by the Owners Corp.
In the meantime, the OC should be looking at a loan, rather than a special levy, so that the backsliders will eventually have to pay their fair share.
But, all said and done, I think we can leave the kneejerk insurance commission reaction out of this one.