Western Australian Current Acts Western Australian Current Acts (1) A strata company
must ensure that the following insurance is in place for the strata titles
scheme —
(a) all
insurable assets of the scheme must be insured against fire, storm and tempest
(excluding damage by sea, flood or erosion), lightning, explosion and
earthquake —
(i)
to replacement value; or
(ii)
to replacement value up to, for an event of a specified
kind, a maximum amount specified in the contract of insurance that is a
reasonable limitation in the circumstances;
and
(b) the
strata company must be insured against damage to property, death, bodily
injury or illness for which the strata company could become liable in damages
to an amount of not less than $10,000,000 or, if some other amount is
determined under the regulations, that amount.
Note for this subsection:
1. The owner of a lot
in a survey-strata scheme is responsible for insurance of the kind referred to
in paragraph (a) for infrastructure on the lot.
2. The owner of a lot
is responsible for insurance of the kind referred to in paragraph (b) for
damages for which the owner could become liable.
(2) However, if a
strata company has taken all reasonably practicable steps available to it to
obtain the required insurance but no insurer is willing to enter into a
contract of insurance on reasonable terms that meets the requirements, the
strata company must obtain whatever insurance it can obtain on reasonable
terms that most closely meets the requirements.
(3) The Tribunal may,
on application by a strata company, exempt it from compliance with this
section subject to conditions specified in the exemption.
(4) A strata company
may enter into a contract of insurance relating to the insurable assets of its
strata titles scheme and execute documents relating to the contract in its own
name, as if it were the owner of the assets.
(5) Subject to
subsection (6), if a strata company receives money from an insurer in the
event of damage to or destruction of an insurable asset of the strata titles
scheme, that money must be applied by the strata company in rebuilding,
replacing, repairing or restoring the insurable asset so far as that may
lawfully be done.
(6) Subsection (5)
does not apply if —
(a) the
strata titles scheme is a survey-strata scheme; and
(b) the
strata company passes a resolution without dissent —
(i)
determining that a specified part or all of the money is
not to be used for the purposes of rebuilding, replacing, repairing or
restoring the insurable asset of the strata titles scheme; and
(ii)
specifying how that money is to be distributed amongst
members of the strata company or used;
and
(c) the
insurable asset of the strata titles scheme or, if the insurable asset has
been destroyed or removed, the area affected by the damage or destruction, is
left in a safe condition.
(7) Nothing in this
section derogates from —
(a) any
other requirement imposed on a strata company to obtain insurance (for
example, for workers’ compensation or by resolution of the strata
company); or
(b) the
power of the strata company to obtain other insurance in its capacity as a
body corporate.
Note for this section:
Schedule 2A contains
special provisions for a single tier strata scheme for the required insurance.
[Section 97 inserted: No. 30 of 2018 s. 83.]