More than 10 years ago a few people were saying things about strata insurance issues.
One of them was the Owners Corporation of Australia when it made submissions to the NSW Government about their proposals about strata law changes.
So, what did OCN say all those years back?
In section 4.3, OCN said:
For strata managing agents to act in the best interest of the OC’s they represent, they must be strictly independent. Accepting commissions from suppliers, as is currently common practice, is clearly inconsistent with this requirement and this represents a failure of the current arrangements and the Act. Even when such commissions are disclosed, they influence decisions made and advice given to recipient ECs.
And, it made the following recommendation:
OCN’s Recommendation
A revision of the Act should reposition and redefine the role of strata managing agents so that they:
Have responsibility for and perform a role in ensuring the sound governance of the scheme according to the provisions of the Act in the collective interest of all owners
Carry out their responsibilities and the business of the scheme free of conflicts of interest and not receive commissions and benefits from third parties.
Must not be related to third parties or to the original owner during the Initial Period.
You can read the whole of OCN’s submission here.
Thanks @OCN.