OUR BLOC RESIDENTIAL STRATA INSURANCE · requirements in each State and Territory that a Strata...
Transcript of OUR BLOC RESIDENTIAL STRATA INSURANCE · requirements in each State and Territory that a Strata...
Insurance Australia Limited ABN 11 000 016 722, AFSL 227681.
OUR BLOC RESIDENTIAL STRATA INSURANCE
PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING
CONTENTS
• Cooling off and cancellation• Renewal• Goods & Services Tax (GST)• Subrogation• Financial Claims Scheme• Interest on unallocated premium
10THE POLICY WORDING• Your Policy• Our agreement with You
11GENERAL DEFINITIONS
18GENERAL EXCLUSIONS
04OUR BLOC RESIDENTIAL STRATA STATEMENT AND POLICY WORDING
04IMPORTANT INFORMATION• Who is the insurer?• Who is Our Bloc?• The purpose of this PDS• Updating the PDS• Strata Titles Legislation requirements• Adequate Sum Insured – Cover 1A –
Building, Common Areas and Common• Contents Cover• General Insurance Code of Practice• How to resolve a complaint or dispute• Your privacy• How to apply for this Insurance• Premium• Excesses• Changes to Your Policy
20COVER 1A – BUILDINGS, COMMON AREAS AND COMMON CONTENTS• What We will cover• Additional benefits• Optional Benefits• What We will not cover
27COVER 1B – MISAPPROPRIATION OFSTRATA FUNDS• What We will cover • What We will not cover
29COVER 2A – PUBLIC LIABILITY• What We will cover• Additional benefit• Extensions of cover• What We will not cover
32COVER 2B – COMMITTEE MEMBERS’ LIABILITY• What We will cover• Additional benefits• Extensions of cover• What We will not cover
35COVER 2C – PERSONAL ACCIDENTFOR VOLUNTARY WORKERS• What We will cove• Additional benefit• What We will not cover• Conditions
37GENERAL CONDITIONS• Cancelling Your Policy• Refund of premium if Your Policy is
cancelled• The law that applies to this Policy• Reinstatement of Sum Insured• Cross liability• Severability• Notification of changes in the risk• Reasonable precautions• Inspections• Sprinkler installations
40GENERAL CLAIMS PROCEDURES• When You suffer Damage or loss or a
claim is made against You• Notification of claims• Offer to settle• Refusal of recommendations
• Delays• Acts or omissions of Your body
corporate manager• Recovery action• Other insurances• Repairs or replacement• Salvage value• Claims preparation costs
43CLAIM PAYMENT EXAMPLES• Scenario 1• Scenario 2• Scenario 3• Scenario 4• Scenario 5• Scenario 6
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OUR BLOC RESIDENTIAL STRATA INSURANCEPRODUCT DISCLOSURE STATEMENT ANDPOLICY WORDINGPreparation date: 18/03/2019
This Product Disclosure Statement (PDS) contains two parts:
• Important Information – this contains general information about Your
Policy; and
• The Policy Wording – this contains the terms and conditions of Your
Residential Strata Insurance Policy.
IMPORTANT INFORMATIONWHO IS THE INSURER?
Our Bloc Residential Strata Insurance is issued by Insurance Australia
Limited trading as CGU Insurance (‘CGU’) ABN 11 000 016 722 AFS Licence
Number 227681. In this PDS, the insurer is called ‘We’, ‘Us’ or ‘Our’ or ‘IAL’.
IAL can be contacted by writing to Us at GPO Box 9902 in Your capital city, by
telephoning 132481 or visiting www.cgu.com.au.
WHO IS OUR BLOC?
In arranging this product, Strata Unit Underwriting Agency Pty Limited trading as
Our Bloc is an intermediary, acting as an agent for the insurer and is also a wholly
owned subsidiary of Insurance Australia Group. Its Australian Business Number is
30 089 201 534. Its Australian Financial Services Licence Number is 246719. They
can be contacted by writing to Our Bloc, 5/263 Alfred Street, North Sydney NSW
2060, by telephoning 1300 687 256, or visiting www.ourbloc.com.au.
THE PURPOSE OF THIS PDS
This PDS has been prepared to assist You in understanding Your Policy and
making an informed choice about Your insurance requirements. The PDS
sets out the significant features of the Policy including its benefits, risks and
information about how the insurance premium is calculated. The terms and
conditions of Your Policy are set out in the Policy Wording section of the Policy.
The Policy provides a number of covers that may be provided to You as a
retail client under the Corporations Act 2001 (Cth) (the Act) depending on Your
circumstances. Only the parts of this Policy relevant to cover provided to You
as a retail client and any other documents We tell You are included make up
the PDS for the purposes of the Act. You must read the entire Policy for a full
description of the terms, conditions and limitations of the Policy.
UPDATING THE PDS
Information in this PDS may need to be updated from time to time where
required and permitted by law. You can obtain a paper copy of any updated
information without charge by calling Us or Our Bloc with the contract details
provided in this document. If the update is to correct a misleading or deceptive
statement or an omission that is materially adverse from the point of view of a
reasonable person deciding whether to acquire the Policy, We will provide You
with a new PDS or a Supplementary PDS.
STRATA TITLES LEGISLATION REQUIREMENTS
This PDS has been designed specifically for strata schemes, community title
schemes, stratum development and other similar schemes.
Under applicable Strata Titles Legislation, there are specific insurance
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requirements in each State and Territory that a Strata Company must put in
place and there are particular rights and obligations under acts and regulations
governing strata title, community title, stratum development and/or similar
type property where the property to be insured is located. A Strata Company
may be committing an offence if it does not insure in accordance with the
requirements of the applicable Strata Titles Legislation. These requirements
may include, but may not be limited to, cover for damage by specific events,
cover of specific types of property, cover for specific liability and amounts
payable for damage. This Policy may not meet the requirements of the
applicable Strata Titles Legislation. You must make Your own enquiries and
confirm whether or not this insurance meets the requirements set out under the
Strata Titles Legislation applicable to where Your property is located.
We do not warrant or represent that the cover provided under this insurance
meets the insurance requirements under the Strata Titles Legislation.
ADEQUATE SUM INSURED – COVER 1A – BUILDING, COMMON AREAS AND COMMON CONTENTS COVER
In the event of a major loss, Your Sum Insured should be sufficient to allow for
replacement of Your property including all associated costs (for example, the
cost of demolition work and removal of debris, surveying and engineering and
architectural fees and Goods and Services Tax). To ensure adequacy of Your
Sums Insured, We suggest You obtain a professional replacement valuation
on a regular basis.
There are specific insurance requirements in each State and Territory that deal
with insurance for strata properties. You must make Your own enquiries and
confirm whether or not this insurance meets these requirements.
GENERAL INSURANCE CODE OF PRACTICE
We have adopted and support the General Insurance Code of Practice (‘Code’)
and are committed to complying with it. The purpose of the Code is to raise
the standards of practice and service in the general insurance industry. The
objectives of the Code are:
• to commit Us to high standards of service;
• to promote better, more informed relations between Us and You;
• to maintain and promote trust and confidence in the general insurance
industry;
• to provide fair and effective mechanisms for the resolution of complaints
and disputes between You and Us; and
• to promote continuous improvement of the general insurance industry
through education and training.
Please contact Us or go to www.codeofpractice.com.au to learn more about the Code.
HOW TO RESOLVE A COMPLAINT OR DISPUTE
1. TALK TO US FIRST
If You have a complaint, the first thing You or Your insurance adviser should
do is speak to one of Our staff. If Your complaint relates specifically to a claim,
speak with the claims consultant managing Your claim.
If the staff member or claims consultant are unable to resolve the matter for
You, You or Your insurance adviser may speak to a manager. The manager
will usually provide You with a response to Your complaint within 15 business
days. If the timeframe is impractical for any reason such as the need for more
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information or further investigation, they will discuss with You alternative
timeframes. If You are not satisfied with Our response or We cannot agree with
You on alternative timeframes, You can go to step 2.
2. SEEK A REVIEW
If the matter is still not resolved, the manager will refer You or Your insurance
adviser to the relevant dispute handling department who will conduct a review
of Your dispute. They will usually provide You with a response to Your dispute
within 15 business days. If the timeframe is impractical, We will discuss with You
alternative timeframes.
If You are still not satisfied with Our response to Your dispute or We cannot
agree on alternative timeframes, You can go to step 3.
3. SEEK AN EXTERNAL REVIEW
You are entitled to seek an external review of Our decision. We will provide
You with information about options available to You, including, if appropriate,
referring You to the external dispute resolution scheme administered by the
Australian Financial Complaints Authority (AFCA).
You will not be able to have Your dispute resolved by the AFCA if You are not
eligible under the AFCA’s Terms of Reference.
Further information about Our complaint and dispute resolution procedures is
available by contacting Us.
YOUR PRIVACY
In this ‘Your privacy’ section only, ‘Us’, ‘Our’ and ‘We’ means both CGU and Our Bloc.
We use information provided by customers to allow Us to offer Our products
and services. This means We may need to collect Your personal information,
and sometimes sensitive information about You as well (for example, health
information for travel insurance). We will collect this information directly
from You where possible, but there may be occasions when We collect this
information from someone else.
We will only use Your information for the purposes for which it was collected,
other related purposes and as permitted or required by law. You may choose
not to give Us Your information, but this may affect Our ability to provide You
with insurance cover.
We may share this information with companies within the Insurance Australia
Group, government and law enforcement bodies if required by law and others
who provide services to Us or on Our behalf, some of which may be located
outside of Australia.
For more details on how Our Bloc collect, store, use and disclose Your
information, please read Our Bloc‘s Privacy Policy located at www.ourbloc.com.
au or contact Our Bloc’s Privacy Officer on 1300 687 256.
For more details on how CGU collect, store, use and disclose Your information,
please read CGU’s Privacy Policy located at www.cgu.com.au/privacy.
Alternatively contact CGU at [email protected] or 13 15 32 and We will send
You a copy. CGU recommends that You obtain a copy of this Privacy Policy and
read it carefully.
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By applying for, using or renewing any of CGU’s products or services, or
providing CGU with Your information, You agree to this information being
collected, held, used and disclosed as set out in CGU’s Privacy Policy. CGU’s
Privacy Policy also contains information about how You can access and seek
correction of Your information, complain about a breach of the privacy law and
how CGU will deal with Your complaint
HOW TO APPLY FOR THIS INSURANCE
To apply for this insurance You must complete Our online application form. If
We accept Your application, We will send You a Schedule that will sets out the
details of the insurance You have taken out.
PREMIUM
If We accept Your application for insurance, You must pay the premium shown on
the Schedule for this Policy. You may pay Your premium online by credit card or
PayPal. If You do not pay the premium or if Your payment is dishonoured by Your
financial institution, You will not be insured under this Policy.
HOW WE CALCULATE YOUR PREMIUM
The key factors that determine the premium You pay are reflected in the
questions asked and information obtained at the time of the enquiry or
application for insurance. For Cover 1A – Building, Common Areas and
Common Contents, these factors include the type of property being insured,
where the property is located, the type of construction of the property, the type
of occupants within the Building and to what extent the property is unoccupied.
For all sections, We also take into account Your previous insurance and
claims history.
Your premium also includes amounts that take into account Our obligation
(actual or in some cases estimated) to pay be relevant compulsory government
charges, taxes or levies (for example, stamp duty, GST and fire services levy).
Your premium together with the actual amount of these individual charges,
taxes or levies will be shown on the Schedule.
EXCESSES
If You make a claim under this Policy, You may be required to pay an Excess.
In some instances, You can select at the time of Your enquiry or application for
insurance the amount of the Excess You wish to pay should You have to make
a claim. If You select a higher Excess amount, We may reduce the amount of
premium We charge You.
In some instances, We will impose the amount of the Excess You must pay should
You have to make a claim. We take a number of factors into account in deciding
to impose an Excess and the amount of an Excess. These include factors relating
to Your previous claims history, the type of property being insured, where the
property is located, the type of construction of the property, any commercial
occupant exposure and to what extent the property is unoccupied. We will
advise You of the amount of any Excess applicable at the time of Your enquiry or
application for insurance.
CHANGES TO YOUR POLICY
If You wish to change any details of Your Policy, You can access the Our Bloc
Insurance Portal at www.ourbloc.com.au or call Us on 1300 687 256. If We
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accept the changes, We will provide You with an updated Schedule that will
confirm the change and advise You of any additional premium payable or
refund You will receive for such change.
COOLING OFF AND CANCELLATION
You have 21 days (the ‘cooling off’ period) after You purchase Your Policy to
change Your mind and tell Us that You want to cancel the Policy. We will refund
Your premium in full so long as You have not made a claim under the Policy.
You may cancel Your Policy at any time by accessing the Our Bloc Customer
Self-Service Portal at www.ourbloc.com.au or calling Us on 1300 687 256.
We will refund Your premium for the period after the cancellation date. The
policy cancellation date will be the date We receive Your request the cancel the
Policy or at a future date determined by You.
We may only cancel Your Policy in accordance with the Insurance Contracts Act 1984 (Cth) including (but not limited to) if You:
• make a misleading statement to Us when You apply for Your insurance;
• fail to tell Us anything You should tell Us when You apply for this Policy,
renew this Policy or change or reinstate this Policy;
• fail to comply with the conditions of this Policy;
• fail to pay the premium for this Policy;
• are not fair and open in Your dealings with Us; or
• make a claim under this Policy or any other insurance policy during the
Period of Insurance that is fraudulent.
We may also cancel this Policy if You fail to notify Us of a change in the
circumstances of the risk during the Period of Insurance.
RENEWAL
At least 14 days prior to expiry of Your Policy, We will give You a notice in writing
of the date and time at which Your Policy will expire and advise you if We are
prepared to renew Your Policy. If We offer to renew Your Policy, it is important
that You check the Sums Insured before renewing Your Policy to ensure they are
adequate. If We offer to renew Your Policy, You must pay the premium shown
on the renewal notice by the due date shown on the renewal notice. If You do
not pay the renewal premium, Your Policy will end on the expiry date of Your
existing Policy.
GOODS & SERVICES TAX (GST)
Where We make a payment under this Policy for the acquisition of goods,
services or other supply, We will reduce the amount of the payment by the
amount of any input tax credit that You are, or will be, or would be entitled to
under A New Tax System (Goods and Services Tax) Act 1999 in relation to that
acquisition, whether or not that acquisition is actually made. Where We have
arranged services directly with the builder, repairer or other service provider,
We will pay up to the Sum Insured shown on Your Schedule or other Policy limit
including GST. Where We make a payment under this Policy as compensation
instead of payment for the acquisition of goods, services or other supply, We
will reduce the amount of the payment by the amount of any input tax credit
that You would have been entitled to under A New Tax System (Goods and
Services Tax) Act 1999 had the payment been applied to acquire such goods,
services or other supply.
See also ‘Claims Procedures’ in each section of the Policy.
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SUBROGATION
Subject to the Insurance Contracts Act 1984 (Cth), We have the right to recover
any amount paid by Us from any person You may be able to hold liable (this is
terms a subrogation right) and:
• We have full discretion in the conduct, defence or settlement of any claim
and the right to take any action in Your name;
• You must provide Us with all documents and information We require to
conduct any action in Your name; and
• You and any other party entitled to recovery under the Policy must provide
Us with all information and co-operation We may require in a timely
fashion when requested by Us.
FINANCIAL CLAIMS SCHEME
You may be entitled to payment under the financial claims scheme in the event
that IAL becomes insolvent. Access to the scheme is subject to eligibility criteria.
Information about the scheme can be obtained from http://www.fcs.gov.au.
INTEREST ON UNALLOCATED PREMIUM
If We are unable to issue Your insurance when We receive Your application, We are
required to hold Your premium in a trust account on Your behalf until Your insurance
can be issued. We will retain any interest payable by Our bank to meet, among other
things, bank fees and other bank costs We incur in operating the account.
SECTION 40 INSURANCE CONTRACTS ACT 1984 (CTH) – COVER 2B
Cover 2B – Committee Members’ Liability does not provide any cover for Claims
made before the Period of Insurance or after the expiry of the Policy. However,
under section 40(3) of the Insurance Contracts Act 1984 (Cth), We are not relieved
of liability by reason only that the Claim was made after the expiration of the
Policy if You give Us notice in writing of facts that might give rise to a claim
against You as soon as reasonably practicable after You become aware of those
facts but before the Policy expired.
This explanation of the operation of section 40(3) does not form part of this
Policy wording.
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THE POLICY WORDINGYOUR POLICY
Your Policy is a contract of insurance between You and Us.
Your Policy contains the following information:
• What You are covered for.
• What You are not covered for.
• How We pay claims.
• Important information about Your Policy.
If You need more information about this Policy, please contact Our Bloc or Us.
OUR AGREEMENT WITH YOU
Subject to Your payment of the premium and subject to the terms, conditions
and exclusions of this Policy, We will provide You with the cover shown in Your
Policy up to the amounts specified in the Schedule.
We will provide You with the cover You have selected as set out in the Policy.
The Schedule will show what cover You have requested and We have agreed to
provide to You.
Your Policy will commence on the date shown as the start of the Period of
Insurance in the Schedule and will expire on the date shown as the end of the
Period of Insurance in the Schedule.
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GENERAL DEFINITIONSThe following words have the following special meaning in all sections of this
Policy when the words are capitalised. A reference to the singular includes the
plural and vice versa, unless the context otherwise requires.
Accident or Accidental means something that is not intended or expected by
You and would not be expected from the standpoint of a reasonable person in
Your position.
Aircraft means any craft or object designed to travel through air or space, other
than model aircrafts or unmanned inflatable balloons used for advertising or
promotional purposes.
Authorised Representative means a solicitor, assess, personal investigator or
any other person appointed to act on Your behalf approved by Us.
Breakage means any physical loss or destruction.
Breakdown means sudden and unforeseen physical destruction or physical
Damage to Machinery which requires repair or replacement to enable normal
working to continue.
Building means buildings at the Situation as defined in any act or regulation
governing strata title, community title or similar type of property in the state or
territory where the building is located that You own or are liable for including:
a) anything permanently built, constructed or installed at the Situation;
b) blinds or awnings attached to the outside of a building;
c) outbuildings;
d) services including roads, pipes, cables, power poles, aerials or satellite dishes;
e) swimming pools; and
f) tennis courts, marinas, wharves, docks, jetties and pontoons.
Building does not include:
a) illegal installations;
b) mobile or fixed air conditioning units servicing an individual Unit where
Your Situation is in Queensland;
c) plants, lawns, trees, gravel, pebbles, rocks, stones, soil, sand, bark or mulch
other than as covered under the Additional Benefit – Landscaping in Cover
1A – Buildings, Common Areas and Common Contents;
d) property that a tenant or lessee is liable for under the terms of a rental
agreement including but not limited to removeable fixtures; or
e) temporary floor coverings, carpets, carpet underlay, curtains, blinds and
window coverings inside an individual Unit.
Where anything in this definition of ‘Building’ is contrary to any act or regulation
governing strata title, community title or similar type property applying to the
Situation, the requirements of the relevant act or regulation will apply.
Building Management Committee means a committee formed to represent
the joint interests of more than one property owner.
Catastrophe means an event causing widespread Damage as as a result of
which the Insurance Council of Australia declares a catastrophe event.
Claim means any writ, summons, legal proceeding, written or verbal demand
that is issued against or served upon You alleging any Wrongful Act that is
covered by this section.
Collapse means sudden or unforeseen physical destruction, Damage,
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distortion, bending or crushing of any part of Pressure Equipment caused by
force of steam, gas or fluid pressure or vacuum, including Damage caused by
overheating resulting from insufficiency of water.
Committee Member means:
a) a person or other entity appointed by Your strata community to act as
an office bearer or committee member in terms of the strata schemes
management act, strata titles act, community titles act or similar legislation
applying where the Insured Property and Common Area is situated;
b) a Strata Manager appointed as an agent of an Office Bearer and/or
committee member; and
c) a person invited by an Office Bearer and/or committee member to assist in
the management of Your Strata affairs,
but does not include a Strata Manager or any other contracted person, firm or
company when acting in their professional capacity.
Common Area means the area at Your Situation that is not part of a Unit.
Common Contents means the unfixed property at Your Situation that You own
or are liable for including:
a) carpets;
b) Computer Equipment and electronic equipment;
c) furniture and furnishings;
d) garden equipment;
e) office equipment; and
f) portable appliances,
in such areas.
Common Contents does not include:
a) Aircraft, Watercraft, hovercraft and their accessories;
b) plants, lawns, trees, gravel, pebbles, rocks, stones, soil, sand, bark or
mulch other than as specifically covered under the Additional Benefit
– Landscaping in Cover 1A – Buildings, Common Areas and Common
Contents;
c) property of Unit Owners, shareholders, members, proprietors or any other
person or party;
d) Vehicles registered or required to be registered or compulsorily insured or
bepart of a statutory scheme of compensation under any act or regulation
in the state or territory in which the Vehicle is being used; or
e) temporary floor coverings, carpets, carpet underlay, curtains, blinds and
window coverings inside a Unit.
Computer Equipment means data or part of data, computer hardware,
operating system, computer network, equipment, websites, servers, extranet,
software, applications software, computer chip including microprocessor chip
and coded instructions as well as any new technology, product or service
replacing existing computer equipment.
Damage means any partial or total physical loss of, or destruction of property
from any sudden and accidental cause not otherwise excluded by this Policy.
Damaged has a corresponding meaning.
Death means cessation of all vital functions.
Defamation means the tort of defamation at general law in Australia.
Defence Costs means costs, charges and expenses (other than Your fees,
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salaries or salaries of Your employees) incurred by Us or by You with Our Written
Consent (such consent not to be unreasonably withheld):
a) in the investigation, defence, monitoring or settlement of any Claim or
proceedings and appeals there from together with the costs of appeal; or
b) in the legally compellable attendance by an Office Bearer at any official
investigation into the Insured’s affairs.
Electronic Data means facts, concepts and information converted to a form
useable for communications, display, distribution, interpretation, or processing
by electronic or electromechanical data processing or electronically controlled
equipment.
Excess means the amount You have to pay towards the cost for any claim under
the Policy. We will deduct the amount of the Excess from the amount payable
in respect of Your claim. Your Excess will apply for each separate identifiable
event. Where an Excess applies to each vacant lot, this Excess will be applied
to each lot which has suffered loss or Damage. The amount of Your Excess is
shown on Your Schedule or in the Policy wording.
Explosion means sudden and unforeseen physical destruction or physical
Damage caused by violent rending of the permanent structure of the Pressure
Equipment by force of internal steam, gas or fluid pressure (including pressure
of ignited fluid gases) causing displacement of any part of the Pressure
Equipment together with forcible ejection of its contents.
Fire Warden means Voluntary Workers who are responsible for and implement
the safety procedures of Your Common Area and Insured Property to ensure the
safety of occupants or visitors.
Floating Floors means laminated, veneered or similar type flooring not glued
or fastened to the sub-floor but held in position by its own weight with or
without skirting at perimeter walls.
Flood means the covering of normally dry land by water that has escaped or
been released from the normal confines of:
a) a lake (whether or not it has been altered or modified);
b) a river (whether or not it has been altered or modified);
c) a creek (whether or not it has been altered or modified);
d) another natural watercourse (whether or not it has been altered or
modified);
e) a reservoir;
f) a canal;
g) a dam.
Forcible Entry means the unlawful entry accompanied by visible force used to
get into a Building when normal means of entry are locked or blocked.
Funds means money, securities or tangible property received by You, or
collected on Your behalf, which has been or was to be set aside for the financial
management of Your affairs.
Fusion means an electrical motor burnt out by electric current.
Glass means internal and external glass that form part of Your Insured Property.
Indemnity Value means the cost to rebuild, replace or repair Insured Property
to condition that is equivalent to or substantially the same as but not better
nor more extensive than its condition at the time of Damage taking into
consideration age, condition and remaining useful life.
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Injury means an injury to a person caused solely and directly by violent,
accidental, external and visible means. The Injury must be independent of
some other cause.
Insured means the person, persons, or entities shown on the Schedule We
give You.
Insured Property means the Buildings, Common Areas or Common Contents
at the Situation.
Land Value means the sum determined in accordance with the Australian
Property Institute Professional Practice Standards as being the land value at the
Situation.
Loss means money payable by reason of:
a) a judgment ordered by a court of competent jurisdiction;
b) any arbitration award or settlement of claims, negotiated with Our consent;
c) the legal costs and expenses, incurred with Our written agreement, in
defending a claim;
d) the legal costs and expenses of any claimant, awarded against You; or
e) the legal costs and expenses of any claimant We elect to pay.
Loss of Income means an amount of money calculated on the annual rentable
value of any part of Your Common Area, including outgoings that are payable
by tenants or lessees, that applied immediately prior to the loss or Damage and
that would have been received but for the loss or Damage.
Machinery means the electric, electronic, mechanical or hydraulic machinery,
or Pressure Equipment belonging to You, but does not include:
a) any Mobile Machinery, vessel, craft or thing made or intended to fly, float or
travel, or stored in or mounted upon such Mobile Machinery, vessel, craft or
thing, gaming, gambling, amusement, vending machinery, audio or visual
entertainment; or machinery hired by You;
b) calculators, photocopiers, typewriters, mobile phones, pagers, computers
and other office machinery; or
c) telecommunication transmitting and receiving equipment including but not
limited to intercom equipment, wiring, fittings and outlet sockets of electric
lighting or electric power circuits.
Medical Practitioner means a doctor in general practice who is qualified and
licensed to practice medicine in the place where he or she is practicing, or a
specialist medical doctor to whom the Voluntary Worker is referred by such a
doctor in general practice.
Members means the proprietors, Unit Owners or shareholders of Your Insured
Property, whilst acting in the performance of their duties under any act or
regulation governing strata title, community title or similar-type property
applying where Your Insured Property is situated, and in that capacity only.
Their interest or liability as an owner and/or occupier of a lot/Unit is not
included unless otherwise specifically provided by this Policy.
Misappropriation means the intentional, illegal use of Your Funds.
Mobile Machinery means any mechanically operated or driven machine on
wheels or self-laid tracks.
Occupation means any trade, business, profession or employment for which
the Voluntary Worker receives an income.
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Occurrence means:
a) a series of incidents or continuous or repeated exposure to substantially the
same general conditions which:
I) are not intended or expected; and
II) have the same cause; or
III) are attributable to the same source;
b) a single incident that is not intended or expected.
Our Bloc means Strata Unit Underwriting Agency Pty Limited trading as Our
Bloc ABN 30 089 201 534, AFSL 246719.
Partial Disablement means where, in the opinion of a Medical Practitioner, the
Voluntary Worker is completely prevented from performing some of the normal
duties of their usual Occupation.
Period of Insurance means the period of time during which cover is provided
by the Policy as shown on the Schedule.
Personal Injury means:
a) bodily injury, death, sickness, disease, disability;
b) shock, fright, mental anguish;
c) false arrest, false imprisonment, wrongful detention or malicious prosecution;
d) Defamation;
e) wrongful eviction, wrongful entry or other invasion of privacy,
that happens during the Period of Insurance anywhere in Australia.
Policy means this document, Your most current Schedule, endorsements,
special terms, conditions or alterations advised by Us in writing.
Pollution means any solid, liquid, gaseous or thermal irritant or contaminant,
including but not limited to smoke, vapour, soot, fumes, acids, alkalis, chemicals
and waste. Waste includes material to be recycled, reconditioned or reclaimed.
Pressure Equipment means those parts of the permanent structure of a boiler,
pressure vessel, economizer and superheater and attaching pipe systems which
are subject to steam, gas or fluid pressure or vacuum, all belonging to You.
Property Damage means:
a) physical Damage or destruction to tangible property including any loss of
its use following such physical Damage or destruction; or
b) loss of use of tangible property that has not been physically Damaged or
destroyed provided that the loss of use has been caused by an Occurrence,
that happens during the Period of Insurance anywhere in Australia.
Rent means an amount of money calculated on the annual rentable value of
a Unit or Common Area, including outgoings that are payable by tenants or
lessees, that applied immediately prior to the loss or Damage and that would
have been received but for the loss or Damage less any commission or charges
You are not required to pay to a letting or rental agent.
Schedule means the document We give You which sets out the details of Your
insurance cover. You receive a Schedule when You first take out Your insurance
and again when Your Policy is renewed or changed.
Situation means the locations set out as the situation in the Schedule.
Storm means a violent wind sometimes combined with thunder and/or
lightning, heavy falls of rain, hail or snow.
OUR BLOC RESIDENTIAL STRATA INSURANCE • PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING | STRATA-OB 031916
Storm Surge means an abnormal rise in the level of the sea along a coast
caused by the onshore winds of a severe cyclone.
Strata Manager means a person or other entity (appointed in writing by the
Unit Owners) with delegated functions including the authority to act as an
Committee Member in terms of any act or regulation governing strata title,
community title or similar type property applying where Your Insured Property
is situated.
Strata Titles Legislation means the legislation, act or regulation governing
strata title, strata scheme, community title scheme, stratum development and
other similar schemes.
Sub Committee means a committee formed and approved by the committee
of the governing body of the Buildings.
Sum Insured means the amount shown on Your Schedule.
Terrorism means any act, or preparation in respect of action, or threat of
action designed to influence the government de jure or de facto of any nation
or any political division thereof, or in pursuit of political, religious, ideological or
similar purposes to intimidate the public or a section of the public or any nation
by any person or group of persons whether acting alone or on behalf of or in
connection with any organisation or government de jure or de facto, and which:
a) involves violence against one or more persons; or
b) involves Damage to property; or
c) endangers life other than that of the person committing the action; or
d) creates a risk to health of safety of the public or a section of the public; or
e) is designed to interfere with or to disrupt an electronic system.
Total Disablement means where, in the opinion of a Medical Practitioner,
the Voluntary Worker is prevented from performing all of the duties of their
usual Occupation.
Unit means an area marked as a unit and/or a lot on the plan of Your Insured
Property.
Unit Owner means the registered owner of a Unit and/or a lot.
Vehicle means any type of machine on wheels, skis, or on self-laid tracks,
designed to be moved other than by manual or animal power and includes
any trailer or attachment intended to be drawn by such machine. Vehicle does
not include wheelchairs, garden appliances, maintenance equipment or golf
buggies which are not required to be registered.
Voluntary Worker means a person aged 12 years or older who is actually
engaged in voluntary work or duties as authorised and on behalf of You,
without promise of reward or remuneration, other than an honorarium for work
or duties associated with that function. A Voluntary Worker does not include
employees, contractors or any person who receives reward or remuneration for
the services they have provided to You or a Unit Owner.
Watercraft means any vessel, craft or thing made or intended to float on or in,
or travel on or through, or under water.
We, Us, Our and IAL means Insurance Australia Limited ABN 11 000 016 722 AFS
Licence Number 227681.
Working Tool means a Vehicle that has tools, implements, machinery or
plant attached to or towed by the Vehicle and is being used by You within the
confines of Your Common Area or Insured Property. It does not mean transit to
OUR BLOC RESIDENTIAL STRATA INSURANCE • PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING | STRATA-OB 0319 17
or from or within the confines of Your Common Area or Insured Property.
Written Consent means a written authority You must obtain from Us and
hold before You act or incur any expense or enter into any contract or
contractual agreement.
Wrongful Act means any actual or alleged:
a) error, misstatement, incorrect act or omission; or
b) neglect or breach of duty,
by an Office Bearer whilst acting in his or her capacity as such.
You, Your and Yours means the Insured named on the Schedule, unless
otherwise noted.
Your Business means the ownership of or responsibility for Your Common Area
and Insured Property unless You otherwise advise Us and We agree to such an
inclusion in writing.
OUR BLOC RESIDENTIAL STRATA INSURANCE • PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING | STRATA-OB 031918
GENERAL EXCLUSIONSWe will not be liable under any sections of this Policy for any loss, Damage,
destruction, benefit, compensation, legal liability or any other loss, costs, fees,
charges or expenses of whatsoever kind arising directly or indirectly from or in
connection with:
a) anything nuclear or radioactive including but not limited to radioactivity
or the use, existence or escape of any nuclear fuel, nuclear materials or
nuclear waste or action of nuclear fission or fusion;
b) lawful confiscation, nationalisation, requisition or destruction of Your
property;
c) the failure or inability of any item, equipment or computer software to
recognize correctly, to interpret correctly or to process correctly any date,
or to function correctly beyond any time when that item, equipment or
computer software has not recognised, interpreted or processed correctly
any date. We will pay for any resultant loss or Damage that is covered
by this Policy, other than resultant loss or Damage to any Computer
Equipment or computer software;
d) the failure or inability to receive, send, access or use Electronic Data and/or
software and/or the internet. We will pay for any resultant loss or Damage
that is covered by this Policy, other than resultant loss or Damage to any
Electronic Data and/or software;
e) war, invasion, act of foreign enemy, hostilities (whether war is declared or
not), civil war, rebellion, revolution, insurrection, military or usurped power;
f) any deliberate or intention act or omission by You or by any person acting
with Your express or implied consent unless for the purposes of preventing
or eliminating danger to Insured Property or persons; or
g) circumstances which, prior to the Period of Insurance:
I) You disclosed to, or notified to, any insurer; or
II) You were aware of, or a reasonable person in Your position ought to
have been aware of; or
III) You knew, or a reasonable person in Your position ought to have
known, to be circumstances which may give rise to a claim or an
occurrence.
OUR BLOC RESIDENTIAL STRATA INSURANCE • PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING | STRATA-OB 0319 19
WHAT WE WILL COVER ADDITIONAL BENEFITS WHAT WE WILL NOT COVER
PROTECTION OF ASSETS
SECTION 1
OUR BLOC RESIDENTIAL STRATA INSURANCE • PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING | STRATA-OB 031920
COVER 1A – BUILDINGS, COMMON AREASAND COMMON CONTENTSThis Cover 1A forms part of Your Policy only if shown on Your Schedule with an
amount as the Sum Insured.
WHAT WE WILL COVER
We will cover Your Insured Property for any Accidental Damage occurring during
the Period of Insurance up to the Sum Insured shown on Your Schedule for
‘Buildings, Common Areas and Common Contents’.
If We have agreed to pay a claim under this Cover 1A and the Sum Insured for
‘Buildings, Common Areas and Common Contents’ is not totally used for that
claim, We will also pay for:
a) the reasonable and necessary costs of removal, storage and disposal of
debris being the residue of Your Insured Property as a result of Damage We
have agreed to pay for;
b) the reasonable and necessary architect, surveyor, consulting engineer and
other professional fees incurred with Our Written Consent as a result of
Damage We have agreed to pay for;
c) the reasonable and necessary costs incurred with Our written consent in
making submissions and/or applications, attending meetings or hearings
to any government or building licensing authority as a result of Damage We
have agreed to pay for; and
d) the reasonable and necessary fees, contributions and taxes to be paid to
any public or statutory authority to obtain authority to reinstate, repair or
replace Your Insured Property as a result of Damage that We have agreed to
pay for but We will not pay for any penalties or fines,
provided that the maximum amount We will pay for any claim including all
the above benefits is the Sum Insured shown on the Schedule for ‘Buildings,
Common Areas and Common Contents’.
ADDITIONAL BENEFITS
We will also cover the following additional benefits for events that occur during
the Period of Insurance. Where an additional benefit specifies an amount or
percentage payable for that additional benefit, this amount or percentage
is payable in addition to the Sum Insured for ‘Buildings, Common Areas and
Common Contents’. Otherwise the additional benefit is included in the Sum
Insured for ‘Buildings, Common Areas and Common Contents’.
a) Alterations and additions
We will pay You for Damage arising to alterations, additions and
improvements to Your Buildings and Common Contents whilst they are
being carried out during the Period of Insurance, provided the Damage is
covered as set out in the ‘What We will cover’ section of this Cover 1A.
Under this additional benefit We will not pay for any works:
I) that exceed $50,000 unless We have given Our Written Consent before
such works have commenced; or
II) where a builder or contractor is required to take out, or has taken out,
insurance cover that insures material damage and liability risks for such works.
b) Arson reward
We will pay a reward for information which leads to an arson conviction
in connection with Damage covered by this Cover 1A. The reward will
be paid to the person or persons providing the information and may be
apportioned at Our discretion.
OUR BLOC RESIDENTIAL STRATA INSURANCE • PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING | STRATA-OB 0319 21
The most We will pay under this additional benefit for any one event
irrespective of the number of people providing information is $10,000.
c) Capital additions
We will increase Your Sum Insured for ‘Buildings, Common Areas and Common
Contents’ by the total value of any additions, alterations and improvements
to Your Insured Property during the Period of Insurance provided that:
I) a certificate of completion has been issued for the addition, alteration
or improvement;
II) You inform Us within 60 days of completion of the addition, alteration
or improvement;
III) You pay any additional premium We tell You is required as a result of
the addition, alteration or improvement; and
IV) the most We will increase Your Sum Insured by is $250,000.
d) Emergency costs to minimise losses
We will pay the reasonable costs of any necessary emergency repairs You
incur in minimising Damage covered under this Cover 1A and avoiding
further Damage to Insured Property following a loss covered under this
Cover 1A.
e) Exploratory costs
We will pay the reasonable and necessary costs incurred in identifying
and locating the source of any liquid bursting, leaking, discharging or
overflowing from any tank, pipe or apparatus used to hold or carry liquid
of any kind that has caused Damage to Your Insured Property that is not
otherwise excluded under this Cover 1A.
We will also pay the reasonable and necessary costs to:
I) reinstate the area of Your Insured Property necessarily Damaged by the
exploratory works; and
II) repair and replace the defective part from where the liquid escaped,
provided that We will only pay these costs if the cause of the liquid bursting,
leaking, discharging or overflowing is not excluded by this Cover 1A.
The maximum amount We will pay under this additional benefit is $1,000
for any one event.
f) Fallen trees
If a tree or branch falls causing Damage to Your Insured Property, We will
pay the reasonable and necessary professional costs for:
I) removal and disposal of fallen trees or branches; and
II) treating the tree stump or roots to prevent re-growth of the tree,
provided that We will not pay for the removal or disposal of any tree stumps
or roots.
The maximum amount We will pay under this additional benefit is $2,000
for any one event.
g) Fire extinguishment
We will pay the reasonable and necessary costs incurred for the purpose of:
I) extinguishing a fire at the Situation, or in the vicinity of the Situation,
that is threatening to cause Damage to Your Insured Property;
II) replenishment of fire fighting appliances, replacing sprinkler heads and
resetting fire, smoke and security alarm systems following their use in
extinguishing a fire at the Situation; and
OUR BLOC RESIDENTIAL STRATA INSURANCE • PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING | STRATA-OB 031922
III) shutting off the supply of water or other substances at the Situation
which are accidentally discharged from any fire protective equipment.
h) Fusion
We will pay the costs to repair or replace Your electric motors at the Situation
which burn out by electric current during the Period of Insurance.
We will only pay when the electric motor is no bigger than 5 kilowatts (6.7 hp).
We will not pay for:
I) any additional costs arising from loss of use of the electric motor;
II) contact at which sparking or arcing occurs in ordinary working;
III) lighting or heating elements, fuses, protective devices or switches;
IV) motors under a guarantee or warranty; or
V) other parts of any electrical appliance or non-electrical components,
including software.
If the motor forms part of a sealed unit, We will also pay for the cost of
replacing refrigerant gas.
If a motor in a sealed unit cannot be repaired or replaced because of the
unit’s inability to use a different type of refrigerant gas as required by
regulation, or parts are no longer available, then We will only pay the cost
that would have been incurred in repairing a sealed unit in an equivalent
modern day appliance. If an equivalent modern day appliance is not
available then We will only pay the cost that would have been incurred in
repairing a sealed unit in one as close as possibly equivalent modern day
appliance.
If a motor (apart from a motor in a sealed unit) cannot be repaired or
replaced because parts are no longer available or are obsolete, We will not
pay more than the estimated cost of similar parts for similar type of motor
currently available. If similar parts are found to be unobtainable, We will
not pay more than the manufacturer’s or supplier’s latest list price.
i) Inflationary costs – CPI increase
If there is Damage to Your Insured Property covered by this Cover 1A, We
will increase Your Sum Insured for ‘Buildings, Common Areas and Common
Contents’ by the percentage the Consumer Price Index (housing group)
(CPI) has increased (if any) since the commencement of the current Period
of Insurance to the date of the covered Damage.
j) Landscaping
We will pay up to a maximum of $2,000 for the reasonable costs to repair or
replace trees, plants, lawns or garden beds owned by You at the Situation
that suffer Damage covered by this Cover 1A.
k) Loss of keys
If a key or code to a lock securing an external door, window or other
opening in Your Building or Common Areas is stolen as a result of Forcible
Entry into your Buildings or Common Areas, We will pay the reasonable and
necessary costs of:
I) rekeying or recoding the lock together with replacement of keys; or
II) replacement with locks of a similar type and quality if the lock cannot
be rekeyed or recorded.
Under this additional benefit We will not pay if there are reasonable
grounds to believe that the keys or codes have been stolen or
duplicated by any occupant or previous occupant of Your Insured
Property or their family or friends.
OUR BLOC RESIDENTIAL STRATA INSURANCE • PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING | STRATA-OB 0319 23
The maximum amount We will pay under this additional benefit is
$1,000 for any one event.
l) Loss of Rent and temporary accommodation
We will pay the following costs where Your Unit or Common Area suffers
Damage covered by this Cover 1A and areas are uninhabitable or when
reasonable access to or occupancy of Your Unit or Common Area is
prevented by Damage to other property within the immediate vicinity of
Your Unit or Common Area that would be covered by this Cover 1A if the
Damage was to Your Unit or Common Area:
I) Loss of Rent
Where a Unit or Common Area is leased out, or You can provide
evidence by means of a signed agreement that a Unit or Common
Area would have been leased out at the time of Damage, We will pay
an amount equal to the actual Rent lost less any recoveries available
under the bond authority. The maximum amount of time We will
provide cover under this benefit for ‘Loss of Rent’ is the lesser of:
A) the time taken for the Unit to be re-occupied by a tenant;
B) 8 weeks after completion of necessary repairs or rebuilding of Your
Insured Property; or
C) 52 weeks.
II) Temporary accommodation
Where a Unit is owner-occupied, We will pay the reasonable costs for
temporary accommodation You necessarily incur calculated on the
basis of similar accommodation located in the vicinity of the Insured
Property location. We will pay for:
A) 4 weeks in short term accommodation agreed to by Us; and
B) after 4 weeks, 48 weeks in residential accommodation of a similar
standard to the relevant Unit.
C) The maximum amount of time We will provide cover under this benefit for ‘Temporary accommodation’ is the lesser of:
1) the time taken for the Unit to be re-occupied by the owner;
2) 8 weeks after completion of necessary repairs or rebuilding of Your Insured Property; or
3) 52 weeks.
III) Under this additional benefit:
A) the combined total amount We will pay for all benefits for ‘Loss
of Rent’ and ‘Temporary accommodation’ under this additional
benefit is 15% of the Sum Insured for ‘Buildings, Common Areas
and Common Contents’;
B) any amounts payable will be reduced by any amount payable in
relation to the costs under any insurance policy held by a Unit Owner;
C) if You or anyone acting on Your behalf causes unreasonable delays
in commencing or completing reinstatement or replacement of
Your Insured Property, We will reduce Our payment by the amount
which results from such delay;
D) if You or anyone acting on Your behalf fails to take all necessary
steps to minimise or stop any further Damage to Your Insured
Property, We will reduce Our payment by the amount which results
from such further Damage; and
E) We will also provide cover to a Unit Owner in which case all
references to ‘You’ and ‘Your’ will be replaced with ‘Unit Owner’ in
OUR BLOC RESIDENTIAL STRATA INSURANCE • PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING | STRATA-OB 031924
this additional benefit only.
m) Pets
We will pay for a Unit Owner’s reasonable and necessary costs to board
domestic pets where their Unit is unable to be occupied as a result of Damage
covered under this Cover 1A. We will only pay under this additional benefit if:
I) temporary accommodation utilised by the Unit Owner does not allow pets;
II) the pet is owned by the Unit Owner;
III) the pet is usually kept at the Situation; and
IV) the Unit is used as a primary place of residence.
n) Modifications
Where a Unit is owner-occupied, We will pay the reasonable and necessary
costs of modifications to the Unit if the Unit Owner, or a member of the
Unit Owner’s family who permanently resides in the Unit, is physically
injured and a certificate is issued by a Medical Practitioner certifying that
the Unit Owner, or family member, is a paraplegic or quadriplegic as a direct
consequence of Damage to Your Insured Property covered by this Cover 1A.
The maximum amount We will pay under this additional benefit is $50,000
in any one Period of Insurance.
o) Property of others
We will pay the Indemnity Value for personal property of others in Your
physical or legal control at the Situation that is Damaged during the Period of
Insurance. We will only pay under this additional benefit if:
I) We would have paid a claim under this Cover 1A if the personal
property had been Yours; and
II) the personal property is not otherwise insured (other than by You).
The maximum amount We will pay under this additional benefit is
$1,000 for any one event.
p) Purchaser’s interest
This Cover 1A is extended to cover a purchaser’s interest in Your Insured
Property if they have signed a legal agreement to purchase a Unit or part of
a Unit within the Insured Property.
q) Restoration of records
We will pay the cost of collating information and preparing, replacing,
rewriting and restoring Your records directly related to Your Insured
Property if they suffer Damage covered under this Cover 1A.
The maximum amount We will pay under this additional benefit is $20,000
for any one claim.
r) Security guard and temporary protection
We will pay the reasonable and necessary costs of providing temporary
protection and employment of security guards to safeguard Your Insured
Property and residents of the Situation following Damage to Your Insured
Property covered by this Cover 1A.
The maximum amount We will pay under this additional benefit is $5,000
for any one claim unless You obtain Our Written Consent prior to You
incurring costs in excess of this amount.
s) Water removal
We will pay the reasonable costs You incur for the removal of water from the
basement area of Your Buildings caused directly by Storm or rain and not
otherwise excluded from cover under this Cover 1A.
The maximum amount We will pay under this additional benefit is $2,000
for any one event.
OUR BLOC RESIDENTIAL STRATA INSURANCE • PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING | STRATA-OB 0319 25
t) Environmental upgrade
If You elect to repair or replace Your Insured Property following Damage
for which We accept a claim under this Cover 1A, We will also pay the
additional costs for environmental improvements not previously installed
that improve the energy and water efficiency of Insured Property.
We will only pay these costs where the cost to repair or replace Your Insured
Property is more than 25% of what the cost would have been had Your
Insured Property been totally destroyed.
The maximum amount We will pay under this additional benefit is $10,000
for any one event less any government subsidies to which You are entitled
at the date of the Damage whether or not You claim these subsidies.
OPTIONAL BENEFITS
The following optional benefit is operative when specified on Your Schedule
with an amount as the Sum Insured. You are not entitled to this optional
benefit if specified on Your Schedule as ‘Not included’.
u) Catastrophe Escalation
Where Your Buildings, Common Area and Common Contents suffer Damage
covered by this Cover 1A which is caused by a Catastrophe, We will pay up to the
greater of an additional 15% of Your Buildings, Common Areas and Common
Contents Sum Insured or the amount shown on Your Schedule, for any escalation
in rebuilding costs where a claim has been admitted under this Cover 1A.
Provided the additional amount for Catastrophe cover is not totally used
for a claim, We will also increase the total amount We will pay under the
additional benefit ‘Loss of Rent and temporary accommodation’ by 15%
if You are entitled to this additional benefit. No amount will be paid under
this optional benefit until such time as the Sum Insured on Your Buildings,
Common Area and Common Contents has been totally exhausted.
If You do not reinstate Your Buildings, Common Area and Common
Contents, no amount will be paid under this optional benefit.
WHAT WE WILL NOT COVER
Under this Cover 1A, We will not pay any claims for Damage to Insured Property
arising directly or indirectly from or in connection with:
a) construction, erection, alteration or addition where the value of such works
exceeds $100,000;
b) the removal or weakening of or interference with the support of land or
Buildings or any other property, vibration, erosion, subsidence, landslide,
collapse or any other earth movement unless it happens immediately
following and as a direct result of:
I) earthquake, seismological disturbance or tsunami;
II) explosion;
III) Storm, rainwater or wind; or
IV) bursting, leaking, discharging or overflowing from any tank, pipe,
gutter, drain or other fixed plumbing apparatus;
c) Flood;
d) wear, tear, fading, marring, gradual deterioration, developing flaws, normal
up-keeping, making good, rust, gradual corrosion, oxidization, concrete or brick
cancer, wet or dry rot. However, this exclusion does not apply to subsequent
Damage to Insured Property not otherwise excluded under this Cover 1A;
e) the action of the sea, tidal wave, high water or high tide (other than that
directly attributable to Damage caused by tsunami);
OUR BLOC RESIDENTIAL STRATA INSURANCE • PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING | STRATA-OB 031926
f) Storm Surge;
g) heating or any process involving the direct application of heat. However,
this exclusion shall be limited to the item or items immediately affected
and shall not extend to Damage to other Insured Property which may result
from such heating or any process involving the direct application of heat;
h) mechanical breakdown or derangement, electrical or electronic breakdown
or derangement or failure caused by electric current. However, this
exclusion will not apply if the Damage is due to:
I) an electric motor burning out;
II) lightning;
III) power surge if You provide evidence of a power surge event from the
supply authority;
IV) resulting fire; or
V) Damage or other subsequent Damage not otherwise excluded by this
Cover 1A;
i) mould, fungi, mildew, Pollution, contamination, change in colour,
dampness, variations in temperature, evaporation, disease, inherent vice,
latent defect, loss of weight or change in texture or finish;
j) normal settling, seepage, shrinkage, expansion, creeping or heaving
in Buildings, foundations, footings, walls, bridges, roadways, kerbing,
driveways, paths, garden borders, retaining walls and other structural
improvements;
k) rats, mice, insects, termites, possums, birds, bats, vermin or other animals
that peck, bite, chew or scratch. However, this exclusion does not apply to
subsequent Damage to Insured Property not otherwise excluded under this
Cover 1A;
l) the invasion from trees, plants, shrubs, grass or their roots or the cost of
clearing pipes from such invasion. However, this exclusion does not apply
to resultant Damage to Insured Property caused by the escape of water or
liquids from blocked pipes or drains; or
m) defect in any item, structural defect, faulty design, faulty workmanship,
error or omission that You were aware of or should have reasonably been
aware of.
We will also not pay for:
a) or cover Your Insured Property for theft or attempted theft arising from or
caused by clerical errors, accounting errors, fraudulent misappropriation,
embezzlement or fraudulent acts;
b) consequential loss of any kind including, but without limiting the generality
of this exclusion, loss due to delay, lack of performance, loss of contract
or depreciation in the value of any undamaged Insured Property except as
specifically provided for under this Cover 1A;
c) demolition ordered by a public or statutory authority as a result of an error
in architectural design, specification, faulty workmanship or non-compliance
with lawful requirements or due to incorrect siting of Your Insured Property; or
d) the cost of rectifying faulty or defective materials or faulty or defective
workmanship.
OUR BLOC RESIDENTIAL STRATA INSURANCE • PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING | STRATA-OB 0319 27
COVER 1B – MISAPPROPRIATION OF STRATA FUNDSThis Cover 1B forms part of Your Policy only if shown on Your Schedule with an
amount as the Sum Insured.
WHAT WE WILL COVER
We will pay You for any loss that You incur as a result of Misappropriation of
Your Funds up to a maximum of the Sum Insured shown on Your Schedule for
‘Misappropriation of Strata Funds’.
We will only pay under this Cover 1B if the fraudulent Misappropriation results
in loss that occurs during the Period of Insurance in Australia.
WHAT WE WILL NOT COVER
Under this Cover 1B, We will not pay any claims arising directly or indirectly
from or in connection with:
a) any further loss arising from an act of fraud or dishonesty committed by the
same person or persons after the first loss has been discovered;
b) losses that are recoverable under any fidelity bond or fund of any type
which provides indemnity for this loss;
c) any claims arising out of losses discovered more than 12 months after the
expiry of the Policy, or any renewal of this Cover 1B of the Policy;
d) any claims arising out of losses of Funds held by managing agents of Your
Building unless Your applicable strata legislation or regulations requires this
cover to be provided under law; or
e) any claims arising out of losses of Funds held in accounts which only
require a single signature for access to Funds.
OUR BLOC RESIDENTIAL STRATA INSURANCE • PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING | STRATA-OB 031928
WHAT WE WILL COVER ADDITIONAL BENEFITS WHAT WE WILL NOT COVER
PROTECTION OF OWNERS CORPORATION
SECTION 2
OUR BLOC RESIDENTIAL STRATA INSURANCE • PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING | STRATA-OB 0319 29
COVER 2A – PUBLIC LIABILITYThis Cover 2A forms part of Your Policy only if shown on Your Schedule with an
amount as the Sum Insured.
WHAT WE WILL COVER
We will pay for all sums which You become legally liable to pay as
compensation in respect of:
a) Personal Injury; or
b) Property Damage,
resulting from an Occurrence happening in connection with Your Business
during the Period of Insurance .
The maximum amount We will pay for any one Occurrence is the Sum Insured
shown on Your Schedule for ‘Public Liability’. Where the Occurrence takes place
over more than one Period of Insurance, We will only pay up to the amount of
the Sum Insured shown on Your Schedule for ‘Public Liability’ once in respect of
each Occurrence.
ADDITIONAL BENEFIT
If We pay a claim under this Cover 2A, We will also pay the following
additional benefit. We will pay these costs and expenses in addition to the
Sum Insured for ‘Public Liability’ shown on Your Schedule.
c) Legal costs
If We pay a claim under this Cover 2A We will also pay:
I) all legal costs and expenses incurred by Us;
II) reasonable cost of legal representation You necessarily incur with Our Written Consent;
III) other reasonable expenses You necessarily incur that We have agreed to reimburse; and
IV) all interest accruing after judgment has been entered against You until We have paid or deposited in court the amount that We are liable to pay following judgment, in relation to the claim.
EXTENSIONS OF COVER
a) Cover for others
Provided that they observe, fulfil and are subject to the terms, conditions
and exclusions of this Policy, We will also cover under this Cover 2A as
though they were ‘You’, the following that are not named in the Schedule:
I) the interest therein of Members;
II) employees of the Insured in connection with the employees’ duties as
an employee;
III) any of Your directors, office bearers or Voluntary Workers including Fire
Wardens, but only for liability incurred by them while acting within the
scope of their duties on behalf of the Insured;
IV) volunteers in connection with their duties in organising recreational
activities for and on behalf of the body corporate for Unit Owners and
occupiers of the Units; and
V) the interest of an owner or leaseholder of property adjacent to Your
Insured Property in respect of their liability which arises from the
Insured’s acts or omissions, in relation to any part of the Insured Property
that overhangs or infringes adjoining public or private property.
OUR BLOC RESIDENTIAL STRATA INSURANCE • PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING | STRATA-OB 031930
b) Recreational activities
We will pay the amounts You are liable to pay for Personal Injury or Property
Damage if Your liability arises from social or recreational activities arranged
for and on behalf of the Unit Owners and occupiers of Units occurring
during the Period of Insurance.
The maximum amount We will pay for any one Occurrence is the Sum
Insured shown on Your Schedule for ‘Public Liability’.
WHAT WE WILL NOT COVER
Under this Cover 2A, We will not pay claims directly or indirectly arising from or
in connection with:
a) Defamation arising from publication of a defamatory matter that:
I) You published prior to the Period of Insurance;II) You knew or ought to have known to be false; orIII) You published maliciously;
b) any agreement or contract You enter into unless liability would have
attached to You in the absence of such agreement. However, this exclusion
does not apply to:
I) liability assumed by You under any contract or lease of real or
personal property; or
II) liability assumed by You in the course of Your Business under the terms
of any written agreement with the company, person or firm appointed
to manage Your Business except where liability arises out of:
A) any alleged act of negligence on their part; or
B) their default in performing their obligations under such agreement;
c) any business, profession, trade or occupation carried on by You other than
the hiring out of Your sporting or recreational facilities and the managing of
the Buildings and its surrounds;
d) assault or battery committed by You or at Your direction, unless it was
committed for the reasonably proportionate purpose of preventing or
eliminating danger to persons or property;
e) arising out of construction, erection, demolition, alteration or additional
where the value of such work exceeds $100,000, unless Our Written
Consent to continue cover has been obtained prior to the commencement
of such work;
f) Damage to, or loss of, property that belongs to any person employed by You
and that Damage or loss arises from his or her employment with You;
g) Damage to property belonging to, rented by or leased by You or in Your
physical or legal control, other than as specifically provided under this
Cover 2A;
h) penalties, fines or awards of aggravated, exemplary or punitive damages
(including interest and costs) imposed against You;
i) Personal Injury to any person employed by You and that injury arises from
his or her employment with You;
j) the discharge, release or escape of any Pollutants or the testing, monitoring,
containing, prevention, removal, neutralizing or cleaning up of Pollutants.
However, this exclusion will not apply where the discharge, dispersal,
release or escape of Pollutants:
I) is caused by a single incident; and
II) is clearly identifiable; and
III) is confined to one specific location; and
IV) is instantaneous;
OUR BLOC RESIDENTIAL STRATA INSURANCE • PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING | STRATA-OB 0319 31
k) liability in consequence of, contributed to, or aggravated by asbestos in
whatever form or quantity;
l) vibrations, removal or weakening of support or from the removal of or
weakening of or interference with the support of land, Common Areas,
Insured Property or other property;
m) liability for Personal Injury or Property Damage in connection with the
ownership, possession, or use by You of any Vehicle:
I) which is registered or which is required under any legislation to be
registered; or
II) in respect of which compulsory liability insurance or statutory
indemnity is required by virtue of any legislation (whether or not that
insurance is effected),
provided that these exclusions m)i. and m)ii. above do not apply to
claims for Personal Injury where:
A) that compulsory liability insurance or statutory indemnity does not
provide indemnity;
B) the reason or reasons while that compulsory liability insurance or
statutory indemnity does not provide indemnity do not involve a
breach by You of legislation relating to Vehicles;
C) arising out of and during the loading or unloading of goods to and
from any Vehicle; or
D) the use of the Vehicle or plant or attachment to the Vehicle as a
Working Tool within the confines of Your Common Area or
Insured Property;
n) Your use, operation, ownership, possession or maintenance of any
Watercraft exceeding 8 metres in length or any hovercraft. However, this
exclusion does not apply to liability arising out of:
I) the use of Watercraft by an independent contractor carrying out works
or operations on behalf of the Insured in the course of Your Business;
II) Watercraft or hovercraft owned and operated by others and used by an
Insured for the purpose of entertainment of Unit Owners, tenants and
their family and friends; or
III) floating jetties, floating pontoons or buoys;
o) Your use, operation, ownership, possession or maintenance of Aircraft or
Aircraft landing areas;
p) Your performance of or failing to render professional advice or service,
but this exclusion does not apply to the rendering of or failing to render
professional medical advice by a legally qualified Medical Practitioner,
legally qualified registered nurse, dentist or first aid attendant You use to
provide first aid services at Your Situation;
q) the actual or alleged use or presence of asbestos, removal of asbestos,
exposure to asbestos, or in any way involving asbestos or asbestos
contained in any materials in whatever form or quantity;
r) actions instituted outside of Australia or actions in Australia that are
governed by the laws of a foreign country; or
s) any liability required by law to be covered under any fund, scheme, policy
of insurance or self-insurance pursuant to or required by any legislation
relating to workers compensation, whether or not such fund, scheme or
insurance has been effected.
OUR BLOC RESIDENTIAL STRATA INSURANCE • PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING | STRATA-OB 031932
COVER 2B – COMMITTEE MEMBERS’ LIABILITYThis Cover 2B forms part of Your Policy only if shown on Your Schedule with an
amount as the Sum Insured.
In this Cover 2B only, ‘You’, ‘Your’ and ‘Yourself’ is extended to also mean a past
or present Committee Member.
WHAT WE WILL COVER
We will indemnify You for Loss arising from a Wrongful Act which results in a
Claim made against You in Australia that is:
a) first made against You during the Period of insurance; and
b) notified to Us in the current Period of Insurance or within 30 days thereafter.
The maximum amount We will pay for all Claims in any one Period of
Insurance is:
c) the Sum Insured shown on Your Schedule for ‘Committee Members’
Liability’; and
d) when We have reinstated Your cover under additional benefit ‘b)
Reinstatement of cover’ in this Cover 2B, an amount equal to that limit of
indemnity.
Where any Wrongful Act results in more than one Claim covered by Us under
this Policy or another policy, all such Claims will jointly constitute one Loss and
be deemed to have originated in the earliest Period of Insurance in which any of
such Wrongful Acts is first reported to Us.
ADDITIONAL BENEFITS
a) Advancement of Defence Costs
Where We have not agreed to pay a Claim, We may:
I) decide not to manage the settlement of Claim and then We may, at
Our option, pay the Defence Costs arising from the Claim as they are
incurred; or
II) decide to manage the settlement of a Claim and then We will pay the
Defence Costs arising from the Claim as they are incurred.
We will decide which one We will do.
If We deny or withdraw indemnity of a Claim is withdrawn, We will
stop paying the Defence Costs arising from the Claim. If We do this, We
reserve the right to recover from You any payments of Defence Costs
previously made by Us to the extent that You were not rightfully entitled
to the previously paid payments.
b) Reinstatement of cover
When We have paid a Claim under this Cover 2B and the total amount of
the Claim equals, or but for the Sum Insured shown on Your Schedule for
‘Committee Members’ Liability’ would exceed, the Sum Insured shown on Your
Schedule for ‘Committee Members’ Liability’, We will reinstate the Sum Insured
once only to the Sum Insured shown on Your Schedule for ‘Committee Members’
Liability’, subject to You paying any additional premium We may require.
This reinstatement shall not apply to:
I) any Claim, fact or circumstance that should have been or could have
been notified to Us during the proceeding Period of Insurance of this
Cover 2B or under an earlier Committee Members’ Liability cover
issued by Us;
II) any Claim notified to Us for which a Loss payment has not been made; or
III) any existing Claim on which a Loss payment has been made including
any subsequent Claim that may arise from the same event.
OUR BLOC RESIDENTIAL STRATA INSURANCE • PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING | STRATA-OB 0319 33
EXTENSIONS OF COVER
a) Continuous cover
We agree to accept notification of any Claim that should or could have been
notified to Us in a previous Policy year, provided that:
I) We have continuously been the Committee Members’ liability insurer
since the time when the first notification should have been given, and
the time the notification is given;
II) the Policy limit of cover, including its terms, conditions and exclusions
provided, will be those applicable to Our Committee Members’ Liability
insurance current when the Claim should have or could have been made.
b) Extended period of cover
We agree that should a Claim arise within a period of 30 days following
the expiry date of this Policy and Your renewal instructions have not been
received, We will subject to Your renewal instructions being received by Us
during that period, accept the notification of such Claim under this Cover 2B.
c) Cross liability
For the purposes of this Cover 2B only, where more than one legal entity
is insured under this Policy, We will indemnify You to another Insured as if
that other Insured were not a party to the Policy subject to Our total liability
not exceeding the Sum Insured shown on Your Schedule for ‘Committee
Members’ Liability’.
WHAT WE WILL NOT COVER
Under this Cover 2B, We will not pay claims directly or indirectly arising from or
in connection with:
a) failure to provide to Us first notification of a Claim made against You in the
current Period of Insurance except as specifically provided by this Cover 2B;
b) any circumstances or event where You intentionally acted outside Your
authority as a Committee Member;
c) any circumstance or event where You are entitled to claim under another
policy that ended before this Policy started;
d) any Claim brought against You in a court of law outside of Australia or an
Australian Court applying foreign law;
e) any conflict of duty or conflict of interest of Yours;
f) any bodily injury, sickness, disease, illness or Death of any person, or
Damage or Loss to any property. However, this exclusion does not apply to
Damage or Loss to documents which are Your property, or entrusted to You,
or the costs incurred by You to replace or restore such documents;
g) any profit or advantage gained by You where You are not entitled to or
may be held accountable to the named Insured in the Schedule or any
member thereof;
h) Loss or liability arising from circumstances which You knew of prior to the
inception date of this Cover 2B or a reasonable person in the circumstances
could be expected to know to be circumstances which may give rise to a
Claim against You;
i) money or gratuity given to You which was not approved by the named
Insured in the Schedule or where approval is required by law;
j) fines, penalties, punitive or exemplary or aggravated damages or any additional
damages resulting from the multiplication of compensatory damages;
k) pollution or contamination;
l) the actual or alleged use or presence of asbestos, removal of asbestos,
exposure to asbestos, or in any way involving asbestos or asbestos
contained in any materials in whatever form or quantity;
OUR BLOC RESIDENTIAL STRATA INSURANCE • PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING | STRATA-OB 031934
m) any dishonest, fraudulent, criminal or malicious Wrongful Act by You.
However, this exclusion does not apply:
I) where You did not commit or condone such Wrongful Act; and
II) to the costs incurred by You in successfully defending any Claim made
against You;
n) Defamation; or
o) Your intentional decision not to effect and maintain insurances as required
by the Strata Schemes Management Act, Strata Titles Act, Community Titles
Act, Company Titles Act or Strata Titles Legislation or similar legislation
applying where Your Insured Property is located.
P)
OUR BLOC RESIDENTIAL STRATA INSURANCE • PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING | STRATA-OB 0319 35
COVER 2C – PERSONAL ACCIDENTFOR VOLUNTARY WORKERSThis Cover 2C forms part of Your Policy only if shown on Your Schedule with an
amount as the Sum Insured.
WHAT WE WILL COVER
If a Voluntary Worker sustains Injury resulting in one of the Events tabled below,
We will pay to the Voluntary Worker or to their estate, the Benefit shown next to
that Event.
EVENTS BENEFITEvent 1 – Death $ 100,000Event 2 – Total and permanent loss of sight in both eyes $ 100,000Event 3 – Total loss of use of both hands or both fees or
one hand and on foot
$ 100,000
Event 4 – Total and permanent loss of use of one hand
or one foot
$ 100,000
Event 5 – Total and permanent loss of sight in one eye $ 50,000Event 6 – Total Disablement preventing the injured
Voluntary Worker from performing all of the duties of
their usual Occupation
$1,000 per week
Event 7 – Partial Disablement preventing the injured
Voluntary Worker from performing all of the normal
duties of their usual Occupation
$500 per week
We will only pay under this Cover 2C:
a) when the Injury is sustained during the Period of Insurance when the
Voluntary Worker is engaged in voluntary work on behalf of the Insured
named in the Schedule in Australia;
b) when the Injury results in any of the events tabled above occurring within
12 consecutive months from the date of Injury;
c) for Event 6 for a maximum period of 104 weeks; and
d) for Event 7 for a maximum period of 104 weeks.
We will only pay one Benefit tabled above for the Injury, except as described
below:
a) where payment for Event 1, 2, 3 or 4 for an Injury is made, it will reduced by
any payment made for Event 5 for the same Injury; and
b) where payment for Event 1, 2, 3, 4 or 5 for an Injury is made, it will be
reduced by any payment made for Event 6 or 7 for the same Injury.
ADDITIONAL BENEFITS
If We agree to pay a claim under this Cover 2C and We have given Our Written
Consent, We will also pay the following additional benefits:
a) Domestic assistance
The reasonable expenses that the injured Voluntary Worker incurs in
obtaining necessary domestic help where, in the opinion of a Medical
Practitioner, the Voluntary Worker is prevented from performing all of the
duties of their usual Occupation.
The maximum amount We will pay under this additional benefit arising out
of the one event is $5,000.
b) Funeral expenses
The reasonable costs of burial or cremation of the Voluntary Worker.
The maximum amount We will pay under this additional benefit is $5,000.
OUR BLOC RESIDENTIAL STRATA INSURANCE • PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING | STRATA-OB 031936
c) Miscellaneous expenses
Any other reasonable and necessary expenses that the injured Voluntary
Worker incurs as a direct result of the Injury.
The maximum amount We will pay under this additional benefit is $2,000
per Injury.
d) Travel expenses
The reasonable expenses that the Injured Worker incurs in travelling to
obtain medical treatment.
The maximum amount We will pay under this additional benefit is $2,000
per Injury.
WHAT WE WILL NOT PAY
Under this Cover 2C, We will not pay any claims:
a) for any amounts payable by or recoverable from any registered health fund,
Medicare or other insurer or which we are prohibited from providing cover
for under the Health Insurance Act 1973 (Cth), the Private Health Insurance
Act 2007 (Cth) or National Health Act 1953 (Cth);
b) for any deliberately self-inflicted Injury;
c) for Event 6 or Event 7 if the injured Voluntary Worker is not in paid
employment at the time of the Injury;
d) for Event 6 or Event 7 for more than 104 weeks for the same Injury;
e) for Event 6 or Event 7 for more than the Voluntary Worker’s current average
weekly earnings;
f) for any pre-existing Injury, physical or mental disability;
g) if the injured Voluntary Worker does not obtain medical advice and/or treatment
from a Medical Practitioner as soon as possible after the Injury occurs;
h) to an injured Voluntary Worker when that Voluntary Worker has already
been paid for Event 2, 3, 4 or 5;
i) which results from the Voluntary Worker being addicted to alcohol or drugs;
j) which results from the Voluntary Worker being under the influence of
alcohol or a drug. However this exclusion does not apply to a drug taken or
given with the advice of a registered Medical Practitioner;
k) arising from childbirth or pregnancy;
l) unless the Injury manifests itself within twelve months of sustaining such
Injury;
m) which results from the Voluntary Worker recklessly disregarding his or her
own safety; or
n) for Injury which occurred before this Cover 2C commenced.
CONDITIONS
a) Medical certificates
Under this Cover 2C, the injured Voluntary Worker must pay the cost, if any,
of certificates, reports or other evidence that We may require. We will only
accept an initial certificate from a registered Medical Practitioner. We will
accept further certificates for ongoing incapacity from a registered Medical
Practitioner or from a registered physiotherapist, registered chiropractor
or registered osteopath, if the certification is appropriate to the Voluntary
Worker’s Injury.
b) Medical treatment and examination
In the event of a claim under this Cover 2C, We may request the injured
Voluntary Worker to have a medical examination. We may request a
post-mortem examination in the event of Death. We will pay for these
examinations.
OUR BLOC RESIDENTIAL STRATA INSURANCE • PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING | STRATA-OB 0319 37
GENERAL CONDITIONSOur liability to pay a claim under this Policy is subject to compliance with the
following conditions:
CANCELLING YOUR POLICY
You may cancel Your Policy at any time by accessing the Our Bloc Insurance
Portal at www.ourbloc.com.au or calling Us on 1300 687 256. The Policy
cancellation date will be the date We receive Your request the cancel the Policy
or at a future date determined by You.
We may only cancel Your Policy in accordance with the Insurance Contracts Act
1984 (Cth) including (but not limited to) if You:
• make a misleading statement to Us when You apply for Your insurance;
• fail to tell Us anything You should tell Us when You apply for this Policy,
renew this Policy or change or reinstate this Policy;
• fail to comply with the conditions of this Policy;
• fail to pay the premium for this Policy;
• are not fair and open in Your dealings with Us; or
• make a claim under this Policy or any other insurance policy during the
Period of Insurance that is fraudulent.
We may also cancel this Policy if You fail to notify Us of a change in the risk as
set out in the clause ‘Notification of changes in the risk’ during the Period of
Insurance and You fail to immediately advise Us in writing.
If We cancel Your Policy, We will advise You in writing. To do this, a notice will
be delivered to You or posted to You in accordance with s 59 of the Insurance
Contracts Act 1984 (Cth).
In the Northern Territory:
a) We cannot cancel the Policy on the sole basis of a breach of the Policy
conditions by someone other than the body corporate;
b) the cancellation notice will be provided to the mortgagee of each Unit; and
c) We have a right of indemnity against a Unit Owner who breaches a
condition of the Policy.
In Victoria:
a) We cannot avoid the whole of the Policy for a breach of a condition of the
Policy by someone other than the owners corporation or all Unit Owners; and
b) the cancellation notice will be provided to the mortgagee whose interests
are noted on the Policy; and
c) We have a right of indemnity against a Unit Owner who breaches a
condition of the Policy.
REFUND OF PREMIUM IF YOUR POLICY IS CANCELLED
If Your Policy is cancelled (other than by exercising Your cooling off rights)
before the expiry date, We will:
a) keep the premium that applies to the period in respect of which the Policy
was in force; and
b) return to You the premium which You have paid that applies to the period
from the date the Policy ended to the expiry date of to the Policy, unless
You make a fraudulent claim.
THE LAW THAT APPLIES TO THIS POLICY
Any disputes arising from this Policy will be determined by the courts, and in
OUR BLOC RESIDENTIAL STRATA INSURANCE • PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING | STRATA-OB 031938
accordance with the laws, of the state or territory of Australia where this Policy
is issued.
REINSTATEMENT OF SUM INSURED
Unless otherwise specified, We will automatically reinstate the Sum Insured
and/or additional benefits for a cover section to the amounts shown in this
Policy and as shown on Your Schedule following a claim. This does not apply to:
a) Cover 2B Committee Members’ Liability;
b) when Your claim is a total loss; or
c) We have paid the total Sum Insured as Your cover will end then.
CROSS LIABILITY
This clause applies to all cover sections of the Policy, save for Cover 2B
Committee Members’ Liability. Where there is more than one party named in
the Schedule as an Insured, We will treat each as a separate and distinct party.
The words ‘You’, ‘Your’ and ‘Yours’ will apply to each party in the same manner
as if a separate Policy has been issued to each party, however, Our liability for
any Sum Insured or other Policy limit is not increased thereby.
SEVERABILITY
Any act, breach or non-compliance with the terms and conditions of this
Policy committed by any party named in the Schedule as an Insured, will not
prejudice the rights of the remaining party named in the Schedule, provided
that the remaining party shall within a reasonable time after becoming aware
of any act, breach or non-compliance whereby the risk of Damage, loss or
liability has increased, give notice in writing to Us of the act, breach or non-
compliance.
NOTIFICATION OF CHANGES IN THE RISK
You must advise Us immediately in writing of:
a) all changes in occupation or circumstances relating to Your Insured
Property and other property insured under this Policy;
b) any change in information or details You have given Us in relation to Your
Insured Property and other property insured under this Policy or You; and
c) any change that increases the risk of Damage or personal injury at Your
Insured Property or by other property insured under this Policy.
REASONABLE PRECAUTIONS
You must take all reasonable care and exercise all necessary steps to:
a) maintain Your Insured Property and other property insured under this
Policy in a good state of repair to prevent anything which could result in a
claim under this Policy; and
b) prevent Damage to other people’s property or personal injury to other
people and comply (and use reasonable endeavors to ensure that Your
employees, servants and agents comply) with all statutory obligations and
bylaws or regulations imposed for the safety of property or persons.
INSPECTIONS
We (or agents appointed by Us) have the right to inspect and examine, by
mutual appointment, any Property Insured under this Policy. Any such
inspection shall not amount to a representation as to ownership, fitness for
purpose, safety or compliance with any law or regulation.
OUR BLOC RESIDENTIAL STRATA INSURANCE • PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING | STRATA-OB 0319 39
SPRINKLER INSTALLATIONS
It is a condition of this Policy that, in regard to any property, being property
insured in which an automatic sprinkler system is installed and which is owned
by You, or where You are responsible for the operation or maintenance of the
automatic sprinkler system, You shall:
a) ensure that the property is protected as required by law by an approved
installation of automatic sprinklers, automatic external alarm signal and
automatic alarm signal connected with a fire brigade station of other legally
approved monitoring organization;
b) exercise due diligence to ensure that any system and alarm signal are at all
time maintained in good working order;
c) ensure that such system will be regularly maintained in accordance with
Australian Standard AS1851 (Part 3); and
d) notify Us, in writing and as soon as reasonably practicable, of any
alterations or additions to the automatic sprinkler installation.
OUR BLOC RESIDENTIAL STRATA INSURANCE • PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING | STRATA-OB 031940
GENERAL CLAIMS PROCEDURESOur liability to pay a claim under this Policy is subject to compliance with the
following procedures.
WHEN YOU SUFFER DAMAGE OR LOSS OR A CLAIM IS MADE AGAINST YOU
You must:
a) take all necessary steps to minimise and/or stop any further loss or Damage
from occurring;
b) advise the nearest police station if Your property is lost, stolen, vandalized
or maliciously Damaged, We may ask You to give Us a written report from
the police;
c) keep the property that has been Damaged so We can inspect it;
d) not repair or replace any Damaged property without Our consent except for
emergency repairs We have agreed to pay under Cover 1A additional benefit
‘Emergency costs to minimise losses’;
e) cease the continued use of Damaged property, until such property is
repaired to Our satisfaction;
f) use best endeavors to preserve any Damaged or defective appliances,
plant or things which might prove necessary or useful by way of evidence in
connection with any claim;
g) allow us to access Your property for inspections conducted by Us, assessors
or repairers;
h) allow Us to obtain information from Your property manager, Stata Manager,
accountant, registered tax agent, lawyer, legal representative, employees,
person or organisation engaged by You, and/or any repairer to assist Us in
managing Your claim; and
i) at Your own expense, provide Us with all records, invoices, and other
documents, information, explanations and other evidence together with
statutory declarations, as We may require for the purpose of investigating or
verifying a claim under this Policy.
You must not:
a) make any admission of liability or payment or promise or offer of payment
in connection with any claim without Our consent; or
b) authorise repairs to, or arrange replacement of, any of the Insured Property
or other property insured under this Policy relevant to the claim, or
incur any cost or expense for a claim without Our consent unless by not
authorising the repairs, the safety of people is put at risk.
We reserve the right to:
a) take over and conduct in Your name the settlement of any claim or legal
proceeding or appeal;
b) refuse to use the Authorised Representative You propose without providing
any reason;
c) instruct You to terminate the services of the Authorised Representative if We
consider it is in Your interest to do so;
d) appeal any decision if You are not successful in defending legal proceedings
brought against You; and
e) instruct You to take necessary steps to minimise further loss or Damage
from occurring.
OUR BLOC RESIDENTIAL STRATA INSURANCE • PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING | STRATA-OB 0319 41
NOTIFICATION OF CLAIMS
We depend upon Your cooperation. This means when something happens that
You believe You can claim for, or something occurs that may result in a claim,
You must:
a) complete any forms as requested by Us;
b) advise Us immediately on receipt of any intention to make a claim against You;
c) advise Us immediately in writing of any circumstance or event which may
result in a claim being made against You;
d) make Your claim as soon as possible after You suffer a loss. If You do not
make it within 30 days of the date of loss, We may reduce what We pay You
by an amount which represents any disadvantage We suffer by the delay;
e) send Us all documents, accounts, communications, writ or summons
relating to Your claim within 72 hours of receiving them;
f) provide to the Authorised Representative all assistance they require and all
required materials available to You; and
g) immediately advise Us of any impending prosecution or inquest.
OFFER TO SETTLE
You must advise Us of any offer to settle a proceeding. We may stop paying Your
legal costs and expenses if You do not agree to a reasonable settlement. When
the Authorised Representative recommends settlement of a proceeding and
You wish to continue with the proceeding, We will only pay the legal costs and
expenses incurred up to that date.
REFUSAL OF RECOMMENDATIONS
If against Our recommendations You elect to continue any legal proceedings,
Our liability will not exceed the liability for which the claim could have been
settled for up to that date.
DELAYS
If You, the Unit Owner or anyone acting on Your or the Unit Owner’s behalf
cause delays preventing Us from commencing and completing reinstatement
or replacement of Your Insured Property or other property insured under this
Policy, We will not pay for any extra costs that result from that delay.
RECOVERY ACTION
If You and/or the Unit Owner, have the right of recovery against someone
else for a claim that We have accepted under this Policy, You and/or the Unit
Owner give Us Your and/or the Unit Owner’s rights to pursue that recovery.
You and/or the Unit Owner also give Us Your and/or the Unit Owner’s rights to
conduct, defend or settle any legal action and to act in Your and/or the Unit
Owner’s name.
You and/or the Unit Owner must not do anything that prevents Us from doing
this, prejudice Our rights or settle any claim without Our consent and You and/or
the Unit Owner must give Us all the information and cooperation that We require.
OTHER INSURANCES
If loss, Damage or an event occurs that results in a claim being lodged under
this Policy, You must notify Us of any other insurance that covers the same loss,
Damage or event. We have the right to seek contribution from the other insurer.
OUR BLOC RESIDENTIAL STRATA INSURANCE • PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING | STRATA-OB 031942
REPAIRS OR REPLACEMENT
We will agree with You the supplier or repairer to be used. If We cannot agree
and if You choose Your own repairer or supplier the most We will pay is the costs
of repair or supply as determined by Our supplier or repairer for comparable
supply or repair.
You must allow Us to:
a) inspect any Damaged item or Insured Property; and
b) take possession of any Damaged item or Insured Property.
SALVAGE VALUE
If We have paid a claim for Damage, or replaced items which have been
recovered, We are entitled to any salvage value.
CLAIMS PREPARATION COSTS
We will pay the reasonable costs You necessarily incur for the preparation of a
claim under this Policy. We will only pay these costs when You have obtained
Our Written Consent prior to them being incurred. The maximum amount We
will pay for these costs is $30,000.
JURISDICTION
Any dispute arising out of or under this Policy will be subject to determination
by any Court of competent jurisdiction within Australia according to the law
applicable to that jurisdiction.
GOODS & SERVICES TAX (GST)
Where We make a payment under this Policy for the acquisition of goods,
services or other supply, We will reduce the amount of the payment by the
amount of any input tax credit that You are, or will be, or would be entitled to
under A New Tax System (Goods and Services Tax) Act 1999 in relation to that
acquisition, whether or not that acquisition is actually made. Where We have
arranged services directly with the builder, repairer or other service provider,
We will pay up to the Sum Insured shown on Your Schedule or other Policy limit
including GST. Where We make a payment under this Policy as compensation
instead of payment for the acquisition of goods, services or other supply, We
will reduce the amount of the payment by the amount of any input tax credit
that You would have been entitled to under A New Tax System (Goods and
Services Tax) Act 1999 had the payment been applied to acquire such goods,
services or other supply.
OUR BLOC RESIDENTIAL STRATA INSURANCE • PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING | STRATA-OB 0319 43
CLAIM PAYMENT EXAMPLESThese claim payment examples show You how a claim settlement is calculated
based upon some practical scenarios. Any claim settlement amount will depend
upon the facts of each case. These claims examples are illustrative only and
do not form part of the Policy. For each of the claims scenarios all supporting
documentation has been provided and there has been compliance with all claims
procedures. All claims examples are for claims within the relevant Sum Insured.
SCENARIO 1
Cover 1A – Buildings, Common Areas and Common Contents
Your Certificate shows a Sum Insured for ‘Building, Commons Areas and
Common Contents’ and an Excess of $1,000. You are registered for GST (with a
100% input tax credit).
The Buildings are Damaged by Storm. You claim $10,000 for Damage to the
Building and You have paid for the repairs. The Building is unable to be leased
out for a period of 14 days while the repairs are completed and You claim $1,000
for Loss of Rent during this period.
We accept Your claim under the Policy and pay You as follows:
Repairs to the Building $10,000.00
Less GST $909.09
Less Policy Excess $1,000.00
Sub-total Building settlement amount $8,090.91
Plus Loss of Rent $1,000.00
Total settlement amount $9,090.91
We will automatically reinstate the Sum Insured for ‘Building, Common Areas
and Common Contents’ and the ‘Loss of rent and temporary accommodation’
additional benefit.
SCENARIO 2
Cover 1A – Buildings, Common Areas and Common Contents
Your Certificate shows a Sum Insured for ‘Building, Common Areas and
Common Contents’ of $8,500,000 and an Excess of $500. You are registered for
GST (with a 100% input tax credit).
The Buildings and Common Contents are totally destroyed by a fire. You claim
$8,500,000 for Damage to the Building and Common Contents. The Building is
unable to be leased out for a period of 12 months while the reinstatement is
completed and You claim $1,275,000 for Loss of Rent during this period.
We accept Your claim under the Policy and we arrange the reinstatement works
directly with the builders and pay as follows:
Reinstatement of the Building (paid to the builder) $8,500,000.00
Plus Loss of Rent $1,275,000.00
Less Policy Excess $500.00
Loss of Rent (paid to You) $1,274,500.00
Total settlement amount $9,774,500.00
We will not reinstate the Sum Insured for ‘Building, Common Areas
and Common Contents’ as Your claim is for a total loss.
OUR BLOC RESIDENTIAL STRATA INSURANCE • PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING | STRATA-OB 031944
SCENARIO 3
Cover 1A – Buildings, Common Areas and Common Contents
Your Certificate shows a Sum Insured of $5,000,000 for ‘Building, Common Areas
and Common Contents’ and an Excess of $1,000. You are not registered for GST.
The Buildings are Damaged by Storm. You claim $10,000 for Damage to the
Building and You have paid for the repairs. The Building is unable to be leased
out for a period of 14 days while the repairs are completed and You claim $1,000
for Loss of Rent during this period.
We accept Your claim under the Policy and pay You as follows:
Repairs to the Building $10,000
Less GST N/A
Less Policy Excess $1000.00
Sub-total Building settlement amount $9,000.00
Plus Loss of Rent $1,000.00
Total settlement amount $10,000.00
We will automatically reinstate the Sum Insured for ‘Building, Common Areas
and Common Contents’ and the ‘Loss of rent and temporary accommodation’
additional benefit.
SCENARIO 4
Cover 2C – Personal Accident for Voluntary Workers
Your Certificate shows cover for ‘Personal Accident for Voluntary Workers’ with
no applicable Excess. You are not registered for GST.
A Voluntary Worker suffers an Injury resulting in permanent loss of sight in both
eyes during the Period of Insurance.
We accept the claim under the Policy and pay the Voluntary Worker as follows:
Event 2 Benefit $100,000.00
Less GST N/A
Less Policy Excess N/A
Total settlement amount $100,000.00
SCENARIO 5
Cover 2C – Personal Accident for Voluntary Workers
Your Certificate shows cover for ‘Personal Accident for Voluntary Workers’ with
no applicable Excess. You are not registered for GST.
A Voluntary Workers suffers Injury resulting in Total Disablement preventing
them from carrying out all of the usual duties of their Occupation for 52
weeks. The Voluntary Worker’s current average weekly earnings are $1,000.
The Voluntary Worker also claims for travel expenses of $100 they incurred in
obtaining medical treatment in relation to the Injury.
We accept the claim under the Policy and pay the Voluntary Workers as follows:
Event 6 Benefit – 52 weeks @ $1,000 per week $52,000.00
Less GST N/A
Less Policy Excess N/A
Plus travel expenses $100.00
Total settlement amount $52,100.00
OUR BLOC RESIDENTIAL STRATA INSURANCE • PRODUCT DISCLOSURE STATEMENT AND POLICY WORDING | STRATA-OB 0319 45
We will pay the $1,000 Benefit per week as it is not more than the
Voluntary Worker’s average weekly earnings.
SCENARIO 6
Cover 2C – Personal Accident for Voluntary Workers
Your Certificate shows cover for ‘Personal Accident for Voluntary Workers’ with
no applicable Excess. You are not registered for GST.
A Voluntary Worker suffers Injury resulting in Total Disablement preventing
them from carrying out all of the duties of their usual Occupation for 25 weeks.
The Voluntary Worker’s current average weekly earnings are $1,000. 25 weeks
after the Injury, the Voluntary Worker dies from the Injury.
We accept the claim and pay as follows:
Event 6 Benefit – 25 weeks @ $1,000 per week paid to
the Voluntary Worker
$25,000.00
Event 1 Benefit of $100,000 less $25,000 being
the amount paid for event 6 paid to the Voluntary
Worker’s estate
$75,000.00
Less GST N/A
Less Policy Excess N/A
Total settlement amount $100,000.00
CONTACT DETAILS
You may contact us to give us instructions by mail, telephone, e-mail or via our website.
A trading name and division of Strata Unit Underwriting Agency Pty Ltd
ABN 30 089 201 534 | AFSL 246719
5/263 Alfred Street North Sydney NSW 2060
[email protected] | www.ourbloc.com.au | 1300 687 256
If you need any further information or have any questions please contact us.