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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?


    More relevant than section 102 is

    166 Strata managing agent to obtain insurance quotations

    A strata managing agent must provide the owners corporation with not less than 3 quotations from different providers for each type of insurance proposed by the agent to the owners corporation or provide written reasons to the owners corporation if less than 3 quotations are provided.

    Now, it could be that the SM has provided the quotes to the committee (who represent the OC) and they have decided on the best option, but they should at least be able to explain why they reached that decision.

    So, rather than ambush them, tell them that you will be asking at the AGM what the other quotes were, who they were from and why they chose the one they did.

    It’s a reasonable question and you and other owners are entitled to know the answers – in summary, at least.  On the other hand, the AGM is not the right place to discuss the relative merits of different insurance policies in detail … unless you want it to drag on for hours as everyone gets an education on strata insurance and what it means.


    Thanks for that advice. It’s yet another example of a lack of transparency that SSM Act allows Committees and Strata Managers to get away with.

    If the Minutes of a Committee Meeting don’t properly record that a Committee obtained then reviewed multiple insurance quotes – as Section 166 requires – the Owners have no way of knowing the procedure has been followed unless someone formally ask for some evidence.  (The Minutes of our Strata Committee are notorious for being appallingly brief and imprecise.)

    Thanks again.

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