Owner’s corporation insurance

In normal situations for small amount it is expected to cover all instances, and the insurance company may increase the premium next year if there are numerous claims.

Some may even be un-seen like in older strata where the balcony is part of the lot and balcony doors and windows are internally to the lot and not common property.

But when the claim is not in thousands but hundreds of thousands the insurance company may not consider the good action of allowing dodgy claims.

When actions of the executive committee occurs then we know if there were no agenda with the motion and then no minute with the vote it is not officially anything other than an action by a resident not representing the owners corporation and being a member of the executive committee is irrelevant.

Or even in actions outside the expected delegation and there are agendas and minutes clearly indicating the executive committee decided against maintenance.

Is this something the executive committee should be aware of or does the insurance policy cover non accidental law breaking actions?

I know my car insurance does not and I have to pay all driving through the red light camera.