VIC: Q&A Conflict of Interest on the Committee?
Question: One of our lot owner has a business which has a contract at the apartment complex. Are they able to nominate for an Owners Corporation committee position or is this a conflict of interest?
Question: One of our lot owner has a business which has a contract at the apartment complex. Are they able to nominate for an Owners Corporation committee position or is this a conflict of interest?
Question: I’m secretary of our strata committee and the chairperson refuses to communicate about upcoming structural changes. How can we improve communications?
We explore parents’ experiences of raising preschool-aged children in newer, private high-rise apartments. The parents experienced a range of barriers to making social connections both within their developments and with the surrounding community.
Where a body corporate cannot comply with its requirement where a body corporate must insure each building in which is located a lot included in the scheme for full replacement value, body corporate legislation provides that I may authorise a form of what is called “alternative” insurance.
From July 2020, landlords in Victoria are set to face a raft of new tenancy laws as the state government increases tenant rights and puts more responsibility on property owners and restricts some practices of the past.
On average there are 10 fires every year in multi-storey residential buildings in Western Australia. Building owners and occupiers should be familiar with the evacuation procedures in their building and what to do in case of a fire.
A strong relationship is necessary to ensure both strata manager and committee members are willing to work together. When there’s a positive relationship, progress can happen.
30 July 2019A national comparison website for home insurance and greater power for consumers in claims settlements are among measures proposed by the ACCC in its latest Northern Australia Insurance Inquiry report, released today.
The second update report of the inquiry finalises 13 recommendations aimed at boosting price transparency and consumer choice in northern Australia, whose residents pay considerably higher premiums for home, contents and strata insurance.
“Communities across northern Australia have told us of their frustration and, at times, distress, in trying to find suitable and affordable insurance in this market,” ACCC Deputy Chair Delia Rickard said.
“Consumers have been given little visibility into how insurers assess risks, set premiums, or why premiums in this region continue to rise. The opacity and complexity of these markets makes comparing products extremely difficult.”
“Our recommendations aim to give consumers the clear, simple information they need to make these crucial decisions about their insurance cover,” Ms Rickard said.
The ACCC has recommended the Australian Government consider a national home insurance comparison website, to provide consumers with clear information about their choices and to support competition between insurers. Insurance companies would be required to participate in the website.
“While there are commercial comparison sites available, these do not compare products from all providers, and Australia’s four biggest insurers do not participate in these websites at all,” Ms Rickard said.
In addition, consumers should be given the right to choose how their home insurance claim is settled, either through a repair or rebuild managed by the insurer; or through a cash payment (after receiving appropriate warnings about the risks of taking a cash settlement). This right should be legislated through changes to the Insurance Contracts Act.
“Consumers may prefer a cash settlement so they can have more control over which builders are used, as well as the scope and timing of the repairs or rebuilding work,” Ms Rickard said.
“In other cases, insurers may finalise a claim with a cash settlement when a consumer would prefer that the insurer manage the repair work.”
“We believe consumers should have the right to choose how their claims are settled.”
The ACCC has recommended consumers be provided with more useful and clear information about insurance products, for example on the premium costs or savings that will stem from optional inclusions or exclusions.
“Insurers should also provide more guidance to consumers on mitigation measures that have been undertaken on properties with similar characteristics, and a guide to the premium reductions that have resulted from doing so. This will give consumers more reliable and practical information on their options to reduce risks,” Ms Rickard said.
Other recommendations include that the minimum time for consumers to be provided with a renewal notice before a policy expires to be extended from 14 days to 28 days to encourage shopping around, and for measures to help consumers consider the costs of insuring a property before they buy it. The ACCC has also proposed that strata managers be paid only by their body corporates, and not accept payment from insurance brokers or insurance companies when they arrange strata insurance.
The full list of recommendations can be found in the report.
Today’s update report finalises the ACCC’s views on the 13 draft recommendations proposed in the Inquiry’s first interim report, released in December 2018.
The recommendations released today complement the 15 recommendations contained in the Inquiry’s first interim report, such as abolishing stamp duty on insurance products, banning conflicted remuneration for insurance brokers, making products more comparable and applying unfair contract terms protections to insurance products.
“We continue to call on the insurance sector and all levels of government to work together to adopt our recommendations which, if implemented, would make a real difference to insurance customers not only in northern Australia, but around the country,” Ms Rickard said.
Current focus areas
Today’s update report also highlights the Inquiry’s progress on its five focus areas for 2019.
The Inquiry’s main focus for 2019 is to consider policy measures that could have the potential to achieve real and meaningful change for northern Australian communities. The Inquiry is currently considering ideas to improve insurance affordability and availability from Australia and overseas, and whether they could be applied in northern Australia.
The Inquiry’s next interim report will also contain case studies in several sub-regions of northern Australia, including Townsville which was hit by devastating floods in February 2019, Airlie Beach and other areas hit by Cyclone Debbie in 2017, and Cooktown, Port Hedland, Kununurra, Katherine and Alice Springs. More detailed information and data on these areas is being obtained from insurers, including policy level premium and claims data.
In addition, the Inquiry is examining insurers’ use of premium adjustments in northern Australia, and considering what barriers exist to insurers expanding in or re-entering the northern Australian insurance market.
In recent weeks, a new entrant has entered north Queensland insurance markets. The ACCC welcomes this development as it will provide consumers in these areas with another option for insuring their home and contents.
“There are a number of insurers that largely exclude northern Australia. Investigating the barriers these insurers face in expanding or re-entering northern Australian insurance markets is a focus for the inquiry in 2019,” Ms Rickard said.
Another important focus area is understanding the extent and reasons for non-insurance throughout northern Australia.
Background
In July 2017, the ACCC commenced an inquiry into the supply of residential, contents and strata insurance in northern Australia, following direction from the Australian Government.
The ACCC released an update report in June 2018 and an interim report in December 2018.
The first interim report found consumers paid much higher premiums in northern Australia, and that most insurers operated at a loss in the region during the past decade.
A second interim report is due to the Treasurer by 30 November 2019 and a final report by 30 November 2020.
Release number: 129/19ACCC Infocentre: Use this form to make a general enquiry.
Media enquiries: Media team – 1300 138 917
Audience
Media
Topics
Insurance
The cause of the building defects crisis is multifaceted. Why building defects are important is much simpler. It comes down to demographics.
Question: At a recent general meeting I was told that ALL strata insurance excess is paid by the owners corporation. My strata manager mention there was a new rule which came in about 5 years ago.
A tight-ass attitude of saving money by not spending on maintenance and repairs has not only led to major building defects across the State but has resulted in incredible psychological and health issues for those who are affected.
Question: I own an investment apartment but do not live close. The Strata Manager tells me they have no meetings, therefore there are no minutes to send. How is the complex running without meetings?
Question: Our intercom system is broken, couriers are unable to contact me to let me know they have a parcel for delivery to my apartment and the Complex Manager will not assist.
Have you ever wondered what happens when a lot owner starts short term letting and it affects the ability of the body corporate to get the required statutory insurance?
Question: Water leaks have resulted in loss of rent and repair costs. Shouldn’t we be reimbursed for our out of pocket expenses from the insurance and the Council of Owners?
On 15 January 2015, the Home Building Amendment Act 2014 changed the terminology and definitions from structural to “major” and from minor to “in any other case” i.e. non-major. So, is your major building defect no longer a major defect? We discuss the new definition and how to establish a major defect.
Virtually no progress has been made to re-regulate the industry, provide protection for consumers, or improve the durability and safety of buildings in the 19 months Fahey has held the reins.
Question: Is it possible to comply with child window lock legislation by installing window locks on the plantation shutters inside the window, rather than on the window itself?
We have seen many cases where the Strata Committee members seem to put their own agenda ahead of the needs of the building. Where the majority of Owners are not engaged in the day-to-day running of their community, it can be very easy to influence things.
Question: Is it possible to apply for conciliation for a few different disputes in one conciliation application form (Form 22)?