sec.120Premium [ SM, s 201 ]

sec.120 Premium [ SM, s 201 ]

The owner of each lot that is included in the community titles scheme and is covered by reinstatement insurance required to be taken out by the body corporate is liable to pay a contribution levied by the body corporate that is a proportionate amount of the premium for reinstatement insurance that reflects— for a lot created under a building or volumetric format plan of subdivision—the interest schedule lot entitlement of the lot; and for a lot created under a standard format plan of subdivision—the cost of reinstating the buildings on the lot. The body corporate may adjust the contribution payable by an owner of a lot under subsection (1) in a way that fairly reflects— the extent to which the premium relates to fixtures and fittings that— form part of the lot; and are of a higher standard than the fixtures and fittings of lots included in the scheme generally; or the extent to which the premium relates to improvements made to the common property that benefit the lot; or the proportion of the total risks covered by the policy attributable to activities carried on, or proposed to be carried on, on the owner’s lot. In a community titles scheme, the owner of a lot starts a small manufacturing business requiring the use and storage of flammable chemicals. The insurance premium for the body corporate policy is increased by the insurer because of the increased risk of damage through fire. The contribution payable by the owner for the insurance premium will include the amount of the increase. The contribution that the owner of a lot is liable for may be recovered by the body corporate as part of the owner’s annual contribution to the administrative fund. (sec.120-ssec.1) The owner of each lot that is included in the community titles scheme and is covered by reinstatement insurance required to be taken out by the body corporate is liable to pay a contribution levied by the body corporate that is a proportionate amount of the premium for reinstatement insurance that reflects— for a lot created under a building or volumetric format plan of subdivision—the interest schedule lot entitlement of the lot; and for a lot created under a standard format plan of subdivision—the cost of reinstating the buildings on the lot. (sec.120-ssec.2) The body corporate may adjust the contribution payable by an owner of a lot under subsection (1) in a way that fairly reflects— the extent to which the premium relates to fixtures and fittings that— form part of the lot; and are of a higher standard than the fixtures and fittings of lots included in the scheme generally; or the extent to which the premium relates to improvements made to the common property that benefit the lot; or the proportion of the total risks covered by the policy attributable to activities carried on, or proposed to be carried on, on the owner’s lot. In a community titles scheme, the owner of a lot starts a small manufacturing business requiring the use and storage of flammable chemicals. The insurance premium for the body corporate policy is increased by the insurer because of the increased risk of damage through fire. The contribution payable by the owner for the insurance premium will include the amount of the increase. (sec.120-ssec.3) The contribution that the owner of a lot is liable for may be recovered by the body corporate as part of the owner’s annual contribution to the administrative fund.