Can a Body Corporate Committee Prevent an Owner from Making A Claim

At the core of the issue lies the fundamental principle of insurable interest. Property owners who have dutifully paid insurance premiums inherently possess an insurable interest in the insurance policy. This concept underscores the fact that despite their intentions, committees cannot effectively obstruct owners from pursuing claims. Even if committees withhold claim numbers, policy details, or impede the claim process, owners can directly approach insurers. Insurers, in turn, are obliged to recognise owners' insurable interests, thereby legitimising their claims.

 

A crucial element in this context is the framework provided by Strata Legislation in Australia. These Acts state that Body Corporates and Owners Corporations must procure insurance coverage on behalf of property owners. This legal foundation further solidifies that committees lack the authority to hinder owners from rightfully pursuing claims under strata insurance policies.

 

While this topic may stir controversy among committees, Strata Insurance Solutions urges a shift in perspective. We encourage committees to empathise with the owners' standpoint. If committees can imagine themselves in the shoes of an owner who has invested in insurance coverage, they would undoubtedly advocate for the right to make legitimate claims under strata insurance policies.

 

In conclusion, Tyrone Shandiman from Strata Insurance Solutions aptly addresses the pressing question of committees' authority to obstruct owners from filing insurance claims. It emphasises the importance of understanding insurable interests and the legal structures that support owners' rights. By upholding these principles, a harmonious balance can be achieved between committees and property owners within the realm of strata insurance.

 

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