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STRATA TITLES ACT 1985 - SECT 54

54 .         Insurance of buildings and strata companies

        (1)         In this section —

        strata company means a strata company for a scheme other than a single tier strata scheme.

        (1a)         Subject to subsection (4) and section 103J, a strata company shall —

            (a)         insure and keep insured the building to the replacement value against fire, storm and tempest (excluding damage by sea, flood or erosion), lightning, explosion and earthquake; and

            (b)         effect and maintain insurance in respect of damage to property, death, or bodily injury for which the strata company could become liable in damages in an amount of not less than $5 000 000 or such other amount as may be prescribed in place of that amount.

        Penalty: $400.

        (2)         A contract of insurance entered into for the purposes of subsection (1a) may provide that, instead of the work and the payments specified in the definition of “replacement value” in section 53 being carried out or made upon the occurrence of any of the events specified in the policy, the liability of the insurer shall, upon the occurrence of any such event, be limited to an amount specified in the policy.

        (3)         It is a defence to a charge of an offence against subsection (1a) for a strata company to prove that, despite having taken all reasonably practicable steps available to it to comply with that subsection, no insurer is willing to enter into a contract of insurance, on reasonable terms, that meets the obligation imposed by that subsection.

        (4)         In the case of a survey-strata scheme, the obligation of the strata company under subsection (1a) applies only to a building that is common property in the scheme.

        [Section 54 amended: No. 58 of 1995 s. 52 and 94; No. 61 of 1996 s. 27.]

        [Heading inserted: No. 61 of 1996 s. 28.]



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