Question: Is the strata insurance legislation that was introduced in the ’90s still fit for purpose?
Is the strata insurance legislation still fit for purpose? It was introduced in the late 90s, well before the various Brisbane floods and cyclones we had this year. We’ve seen the effects of severe weather impacts on the Northern Queensland insurance market. Is southeast Queensland on a pathway to replicating what’s happened in Northeast Queensland, where people have been forced to have cover that may not be particularly beneficial or result in good outcomes?
Answer: The commissioner is saying, “We’re allowing you to make a reasonable decision”.
I believe the commissioner is saying, “We’re allowing you to make a reasonable decision”. That’s what any person buying insurance does, whether you’re a business owner or a homeowner. You make a decision based on what you think is reasonable in the circumstances.
There are a lot of question marks and ambiguity around this particular topic, but if that’s what the legislation is saying, then it is still fit for purpose. There are potential liabilities. That’s really where there are grey areas that need to be clarified in this legislation, and there could be greater clarity in that.
Tyrone Shandiman Strata Insurance Solutions E: tshandiman@iaa.net.au P: 1300 554 165
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisenent Australia AFSL No 240549, ABN 15 003 886 687.