Lately, I was told again that the Council of a Management Corporation (MCST) has refused to file insurance claim on behalf of a subsidiary proprietor when a fire had caused damages to the strata unit of that subsidiary proprietor.
The MCST is required by legislation to provide a damage insurance policy for the subdivided building. The meaning of subdivided building under Sect 69 of the Building Maintenance & Strata Management Act (BMSMA) includes the common property and subsidiary proprietors’ improvements and subsidiary proprietors’ fixtures forming part of the subdivided building other than paint, wallpaper and temporary wall, floor and ceiling coverings.
A good reason for the Parliament to enact that the subsidiary proprietors’ fixtures formed part of the subdivided building is communal living. The affected subsidiary proprietor could be under great duress when his unit is severely damaged by a fire. By putting the fixtures of all strata units under the main insurance policy of the MCST would help any affected subsidiary proprietor, which in the absence of an insurance policy could cost the subsidiary proprietor great financial challenges.
Arguing that the fire had started from within the strata unit or the premium of the fire policy for the ensuing year may increase, cannot be the reason/s nor the refusal of the MCST and its Council to file a claim.It is the duty of the MCST and therefore its Council to invoke the main insurance policy when a need arises. The purpose for buying an insurance policy is to make a claim for compensation whenever it is needed.
What if the Council upon advice still refuse or even deny the managing agent from filing such claim for damages against the insurance company?
Under Sect 110 of the BMSMA, the grieved subsidiary proprietor may make an application at the Strata Titles Board to compel the MCST to pursue an insurance claim in respect of damages caused.
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