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I am an owner in a large (135 owners) Strata Scheme in NSW.
Our AGM is about to be held less than a month before our annual Strata Insurance falls due. But other than confirming that we have a current Strata Insurance policy in place, there is no item on the AGM Agenda asking the Owners to vote on COMPETITIVE QUOTES FOR STRATA INSURANCE for the next period of insurance. (Our annual Insurance is about $140,000.)
Our Strata Manager has advised me (in reply to a formal query from me) that Strata Insurance is “not required to be approved by way of General Meeting; quotations received from an Insurance Broker will be issued to the strata committee for review and approval.”
That advice seems to be in conflict with the requirement of Section 102 of the New South Wales SSM Act 2015 which, for large strata schemes, requires 2 quotes for any expenditure above $30,000.
This has been happening now for several years and the owners are left in the dark as about what deliberations (if any) the Committee and Strata Manager (who receives a commission from the Insurers) undertake before deciding on the preferred Insurer.
Has this question come up before? If so, what has been the consensus?
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