Building (Strata Management) Act 2004 · 2020 Revised Edition · Part 5 · Management of Strata Subdivided Buildings
71. Further insurance by management corporation
Feedback & supportLast amended by an amending law of 2019. 2 amendments in all.
In addition to insurance effected by a management corporation under section 70, the management corporation must effect insurance —
management corporation
“management corporation”, in relation to any parcel comprised in a strata title plan, means the management corporation constituted in respect of that strata title plan under the Land Titles (Strata) Act 1967;
in respect of any occurrence against which it is required by law to insure, including any insurance required to be effected by reason of the provisions of the Work Injury Compensation Act 2019 or the Work Injury Compensation Act (Cap. 354, 2009 Revised Edition) repealed by that Act;
in respect of damage to property, death or bodily injury occurring upon the common property for which the management corporation could become liable in damages;
against the possibility of the subsidiary proprietors becoming jointly liable by reason of a claim arising in respect of any other occurrence against which the management corporation decides to insure; and
in respect of any liability incurred by a person holding the office of chairperson, secretary, treasurer of the management corporation or member of the council of the management corporation because of an act or omission, committed or omitted in good faith, in performing the functions of that office.
Insurance effected under subsection (1)(b) must be for a cover of such amount as the management corporation determines that is not less than an amount prescribed by the regulations.
A management corporation may insure any property which it is not required to insure under this Act and in which it has an insurable interest.
Every decision required or authorised by this section to be made by a management corporation is by an ordinary resolution.
For the purposes of a policy of insurance effected under subsection (1)(b), the common property is deemed to be vested in the management corporation.
common property
“common property”, subject to subsection (9), means —(a)in relation to any land and building comprised or to be comprised in a strata title plan, such part of the land and building —(i)not comprised in any lot or proposed lot in that strata title plan; and(ii)used or capable of being used or enjoyed by occupiers of 2 or more lots or proposed lots; (b)in relation to any other land and building, such part of the land and building —(i)not comprised in any non-strata lot; and(ii)used or capable of being used or enjoyed by occupiers of 2 or more non‑strata lots within that land or building; or (c)in relation to any land and building mentioned in paragraph (a) or (b), any of the following whether or not comprised in a lot, proposed lot or non‑strata lot:(i)the pipes, wires, cables or ducts which are used, or capable of being used or enjoyed, by occupiers of 2 or more lots, proposed lots or non‑strata lots (as the case may be) within that land or building, or are used or capable of being used for the servicing or enjoyment of the common property;(ii)the cubic space enclosed by a structure enclosing pipes, wires, cables or ducts mentioned in sub‑paragraph (i);(iii)any structural element of the building;(iv)the waterproof membrane attached to an external wall or a roof;Examples(a)A foundation, load‑bearing wall, column or beam, a shear core, strut, ground anchor, slab (not including any layer that is the underlayment or the flooring finishing), truss and common staircase.(b)An external wall, or a roof or façade of a building which is used or enjoyed, or capable of being used or enjoyed, by occupiers of 2 or more lots, proposed lots or non‑strata lots.(c)A garden, sporting or recreational facility, car park or parking area for other vehicles, none of which are comprised in a lot, proposed lot or non‑strata lot.(d)A central air conditioning system and its appurtenances, and a fire sprinkler protection system and its appurtenances.(e)Any chute, pipe, wire, cable, duct or facility for the passage or provision of water, sewage, drainage, gas, oil, electricity, telephone, radio, television, garbage, heating or cooling systems, or any other similar services.
Regulations made under this Act may vary the amount of minimum cover required by subsection (2) for insurance effected under subsection (1)(b).
A subsidiary proprietor may bring against the management corporation of which the subsidiary proprietor is a member any action that the subsidiary proprietor may have brought against the management corporation if the subsidiary proprietor had not been a member of the management corporation.
subsidiary proprietor
“subsidiary proprietor” has the meaning given by the Land Titles (Strata) Act 1967;
Where an insurer of a management corporation admits a claim by the management corporation based on an act or omission by a subsidiary proprietor who is a member of the management corporation, the insurer does not have a right of subrogation in relation to the subsidiary proprietor based on that act or omission unless it was proved that the act or omission is wilful.