OCN Australia Speaks Out about Strata Insurance in 2017
More than 5 years ago some [but not many] people were saying things about strata insurance issues.
One of them was the Owners Corporation of Australia when it made submissions to the Federal Senate Standing Committee on Economics in relation to their ###. You can find out more about that in our Daily Post Australian Treasury’s Royal Commission Reaches the Strata Sector.
So, what did OCN say 5 years ago? Well quite a few things, some of which I highlight here.
First, in relation to strata manager’s involvement with insurance:
‘the vast majority who receive a commission for dealing and arranging insurances have a clear conflict of interest, and disincentive to increase the excess to reduce the premium. Disclosure, as required by law, is not common.’
‘that insurance brokers and strata managers acting as professional advisers to OCs are qualified and truly independent’
‘make it illegal for strata managers to accept commission from suppliers, including insurers or insurance brokers’
Second, in relation to insurance charges:
‘removal of commissions grossed into the premium’
‘abolition of all taxes other than GST on strata insurance’
OCN also made 14 recommendations for change.
You can find the whole of OCN’s 2017 Submission here.
Thanks @OCN.
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