Question: 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?
Answer: 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.
This post appears in Strata News #549.
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.
Leave a Reply