Question: Does a standard AGM insurance motion let the committee renew policies above the major spending limit without quotes?
Section 162 of the Body Corporate and Community Management (Accommodation Module) Regulation 2020 states:
(1) The committee may only give effect to a proposal involving spending above the relevant limit for committee spending for the community titles scheme if—
(a) the spending is specifically authorised by ordinary resolution of the body corporate;
This is our standard AGM insurance motion:
Statutory motion: ordinary resolution, proposed by the committee
That the (current) insurance policies detailed below and attached be confirmed:
- type of policy: Commercial Strata Insurance
- name of the insurer: X Insurance
- sum insured: $xxxxxxxxx
- amount of premium: $xxxxxxxxxx
- excess payable on a claim: various
AND FURTHER that the committee be authorised to obtain quotations and to renew the insurance policies for the following year to full replacement value.
If the insurance motion passes at the AGM, does this authorise the committee to renew the insurance policies for the following year if the cost is more than the relevant limit for major spending for the community titles scheme, regardless of the cost and with no quotations?
Answer: No, the motion only authorises getting quotes, and the renewal itself needs a further decision, which the committee can usually make.
The relevant limit for committee spending is the amount last set as the relevant limit for committee spending by ordinary resolution of the body corporate at a general meeting or, if there is no amount set, $200 multiplied by the number of lots in the scheme (see the definition of “relevant limit for committee spending” in schedule 1 of the Accommodation Module). The committee may, in some cases, give effect to a proposal above the committee spending limit. This includes where the committee decides the spending is necessary to put in place a relevant policy of insurance, or to renew an existing relevant policy of insurance, as provided in section 162(1)(e) of the Accommodation Module.
Here, this motion seeks to authorise the body corporate to:
- obtain (insurance) quotations; and
- renew the insurance policies at the scheme.
However, even if the motion passed, the motion would have little practical effect. This is because the motion does not include, for approval, any insurance policy or costings. The adjudicator in Redlynch Grove Apartments [2009] QBCCMCmr 195 explained (our emphasis):
“As mentioned above, Motion 3 was that independent legal advice is to be obtained by the body corporate to investigate the past conduct of the current committee but this motion was ruled out of order on the following grounds:
It does not name a legal adviser or provide a mechanism for choosing a legal adviser;
It did not include quotes to enable the body corporate to approve the expenditure;
There is no provision for this expenditure in the current budget and there was no mention of a special resolution to raise funds for this proposal.
I believe it is quite plausible that the purpose of this motion was to make a preliminary decision as to whether or not legal advice should be obtained and was not an expenditure motion. In the event that the motion was carried, a further motion to engage legal representatives could be placed on the agenda for the next general meeting. Accordingly, I do not believe that this motion should have been ruled out of order.”
Here, the:
- motion would authorise the body corporate to make a preliminary decision to obtain quotations for an insurance policy; and
- body corporate would be required to pass a further motion to authorise the renewal of an insurance policy, which can be done at committee level, provided the decision to renew or take out an insurance policy is not a restricted issue.
This post appears in the November 2026 edition of The QLD Strata Magazine.
Liam Boudin
Mahoneys
E: lboudin@mahoneys.com.au
P: 07 3007 3724
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