One of the glass panels to the balustrade blew off in the wind. An insurance claim was made and the Owners Corporation claims that I am responsible for the excess in full. Is this correct?
The walls of my balcony (boundaries of my lot) are glass balustrades. The plan of subdivision provides that all boundaries are median. One of the glass panels to the balustrade blew off in the wind.
An insurance claim was made and the Owners Corporation claims that I am responsible for the excess in full. However, s 23A(3(c)) provides that an insurance claim can be levied against an owner only where "the claim solely relates to a lot owner's lot". Does this mean that the excess cannot be on-charged where it relates to a median?
Precedent cases before the court have found that the application of an excess works on the benefit principle.
Victorian strata legislation is silent about who is responsible for the payment of an excess.
Precedent cases before the court have found that the application of an excess works on the benefit principle – that is the party benefiting from the insurance claim is liable for the excess.
In this instance, the person responsible for maintaining the glass balustrade (the property owner) would therefore be responsible for the payment of the excess.
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Tyrone Shandiman is a seasoned professional in the insurance industry having embarked on his journey in 2004 within the financial services sector. In 2011, he established Strata Insurance Solutions, transforming a garage startup into a reputable firm servicing over 900 clients with a dedicated focus on strata insurance. Tyrone's role extends beyond managing operations and tackling complex insurance matters; he also founded the Australian Consumers Insurance Lobby, championing consumer rights within the insurance industry. Notably, his efforts and expertise have been acknowledged with numerous industry awards. Adding to these accolades, Strata Insurance Solutions was recently named an Australian Top Brokerage by Insurance Business Australia Magazine, a testament to the firm's excellence and leadership in the field. Tyrone is a regular contributor to LookUpStrata.
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