Commissioner for body corporate says she can’t act on insurance

The hopes of unit owners in North Queensland seeking help on the crippling costs of insurance have been dashed by revelations their state regulator has no authority to act.

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The hopes of unit owners in North Queensland seeking help on the crippling costs of insurance have been dashed by revelations their state regulator has no authority to act.

The Townsville Lot Owners Group had appealed to the state government’s Commissioner for Body Corporate and Community Management, Michelle Scott, asking her to intervene against insurers they say are treating them unfairly by loading policies with products and costs they don’t want or need under body corporate regulations.

But in a letter, Ms Scott says she has no authority to undertake such an expanded role.

“Under the Act the role of the commissioner is to provide a dispute resolution service and an education and information service to help avoid disputes and raise awareness of rights and obligations under the Act,” Ms Scott says.

“I have no legislative authority to undertake an expanded role along the lines proposed, however, I confirm that these proposals will also be brought to the Attorney-General’s attention.”

Unit owners in North Queensland community title schemes have been hit with some of the biggest increases in insurance premiums of any property category over the past 10 years, paying five times the premiums of their counterparts in Brisbane or the Gold Coast.

Increasingly, they are also unable to get insurance and have to apply to the commissioner for an exemption from body corporate laws requiring them to insure to full replacement value.

In the letter, Ms Scott reveals she has received 32 requests for “alternative insurance arrangements” over the past year, of which 25 had been approved so far.

Ms Scott says the applications indicate the North Queensland location is impacting people’s ability to source insurance.

While Ms Scott says the approvals do not address the systemic issues they do provide the people responsible for the schemes the assurance they are not in breach of their obligations.

Lot owners group spokesman Andrew Turnour said North Queensland was being treated as a pariah by the insurance industry with insurers and regulators using incorrect data and unfair policy settings.

He said it was long past time for governments to act.

“We call on the State Body Corporate Community Management Commissioner and federal regulators to introduce home insurance pricing controls,” Mr Turnour said.

“The (Australian Securities and Investments Commission) endorsed General Insurance Code of Practice is neither delivering consumer protection, nor value, to apartment owners and investors in North Queensland.”

Originally published as Commissioner for body corporate says she can’t act on insurance