(1) An association is guilty of an offence if any building or structure on its association property is not at all times fully insured, with an insurer approved by the Minister, against damage or destruction by fire, lightning, explosion or other prescribed risk.
Maximum penalty: 5 penalty units.(1A) Any such building or structure is to be insured for not less than:(a) the amount determined in accordance with the regulations, or(b) if the regulations make no provision for determining the amount, the value of the building or structure indicated by the last valuation obtained for the building or structure in accordance with this Division.(2) Subsection (1) does not apply to an association to the extent that an Adjudicator exempts it from the operation of the subsection (whether or not subject to conditions) on application authorised by a unanimous resolution.
(1) A valuation of a building or structure that is required to be insured under this Division must be obtained at least once every 5 years by the association.(2) The valuation must be carried out by a person who has the qualifications prescribed by the regulations.
(1) An association is guilty of an offence unless at all times it maintains insurances in accordance with this section.
Maximum penalty: 5 penalty units.(2) The association must effect insurance:(a) in respect of any event against which it is required by law to insure, including any insurance required to be effected under the Workers Compensation Act 1987 and the Workplace Injury Management and Workers Compensation Act 1998, and(b) in respect of damage to property and in respect of death and bodily injury (including damage, death and bodily injury occurring on an open access way or a private access way) for which the association could become liable in damages, and(c) against damages for which the association could become liable because of work done by a voluntary worker, and(d) against accidental injury to, or accidental death of, a voluntary worker, and(e) against the possibility of the members of the association becoming jointly liable under a claim arising out of any other event against which the association decides by special resolution to insure, and(f) of any other prescribed class.(3) Insurance under subsection (2) must be:(a) effected with an insurer approved by the Minister, and(b) for a cover of not less than the prescribed amount or an amount determined as prescribed.
(1) An association may insure any property:(a) in which it has an insurable interest, and(b) which it is not required by this Division to insure.(2) This Division does not limit any right of a proprietor of a lot to effect insurance.(3) An association may take out insurance, at its own expense, in respect of either or both of the following:(a) damage to property, death or bodily injury for which a person holding the office of chairperson, secretary, treasurer or member of the executive committee of the association could become liable in damages because of an act or omission, committed or omitted in good faith, in performing the functions of that office,(b) misappropriation of money or other property of the association.
(1) Money paid by an insurer to an association in respect of the destruction of, or damage to, a building on association property must, without delay, be applied by the association in rebuilding, replacing, repairing or restoring the building.(2) Subsection (1) has effect subject to any order in force under Part 7 of the Community Land Development Act 1989 (which relates to variation or termination of a scheme).
(1) Despite section 23 of the Imperial Acts Application Act 1969 or any other law relating to insurance, an association has an insurable interest in the subject-matter of any insurance it is required by this Division to maintain.(2) A member of an association may bring against the association any action that could have been brought if the member had not been a member.(3) An insurer of an association has no right of subrogation in respect of a member of the association based on an act or omission of the member unless it is proved that the act or omission was wilful.(4) Despite anything in a contract of insurance effected by the proprietor of a lot, that insurance:(a) does not affect, and(b) is not to be taken into consideration in determining,the amount payable under a policy of insurance entered into by an association under this Division.
The Director-General must maintain a record of insurers approved by the Minister for the purposes of this Division.