Question: Our BCM’s insurance commission is no longer included in our total premium paid. We’ve been told it’s now being ‘paid by the insurer’. What’s changed?
In 2023, the body corporate manager’s commission of $17,000 was included in our total insurance premium to be paid.
This year, the body corporate manager’s commission of $14,534 was not included in our total premium and advice from the committee treasurer states the commission was paid by the insurer.
Why is there a difference between last year’s and this year’s commission payments, considering we’ve been with the same insurer and broker for a few years?
Answer: I think the line that the commission is paid by the insurer is a bit misleading.
Without all the information, we can’t really answer the specifics of the question. As an owner, you should direct this question to the body corporate manager or the committee. If needed, you could table the question for the next committee meeting or submit an owner’s motion to guarantee a reply.
Otherwise, details about the commission structure and payment should have been declared at the AGM, so for information on this, you could go back and look at the last notice you received. You could also ask to be sent all documentation relating to the renewal.
Generally, I think the line that the commission is paid by the insurer is a bit misleading. It implies the commission does not affect your premium, which is incorrect. Whether you think commissions are reasonable, they are part of your premium. Technically, they are not a direct payment from the body corporate to the manager, but you pay for them in your final premium, so who cares about the technicality?
In saying this, I’m not criticising your treasurer. They may be doing their best to explain. As your commission has reduced at a time when all other costs are rising, perhaps there has been some deal negotiated for the benefit of your scheme. As ever, if you have questions about how your body corporate is operating, it’s fine to ask. If you receive a clear answer, that’s probably a good thing. If not, it might be a red flag.
William Marquand
Tower Body Corporate
E: willmarquand@towerbodycorporate.com.au
P: 07 5609 4924
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