Is the owners corporation liable if an accident occurs when exiting a strata complex onto a busy road?

Have you ever seen an advertisement where the 'punch line' is delivered, however, you remember the disclaimers that follow more than the 'punch line'.

The answer to your question is like these advertisements.

The punchline

Put very basically, the OC has no liability for anything that happens outside the property boundary of the strata scheme.

The disclaimer/s

Providing the committee have not

• arranged some event or
• item or
• alteration to anything outside the property boundary, for example – when the OC arrange for an off-site AGM, EGM or other function to be held on behalf of or for the benefit of the members of the OC, then the OC can be held liable if they are negligent if something happens that causes injury or harm to anyone (including members). e.g. I have seen examples where the committee arranged a picnic at a local park (a get to know your neighbour function). A child of one of the owners was hit by a cricket ball and the parents attempted to hold the committee responsible for not disallowing the other children to play.

The OC policy had a clause that said:

What we cover

We will pay up to the sum insured shown in the schedule where you become legally responsible to pay compensation for;

• Personal injury; or
• Property damage; resulting from an occurrence happening in connection with your business.

Including

• Hiring out of sporting and recreational facilities
• Recreational and other activities, social or other activities arranged for and on behalf of lot owners and occupiers of lots.

In this case, the committee were defended, and the claim was denied.

Most strata insurers offer a broad form liability cover which will respond if the OC is being held liable for (or, more correctly put, someone is attempting to hold the OC liable for) injury or harm. You should check this with your insurer.