A BODY corporate management company is calling for a set fee for commissions paid for strata title insurance premiums.
The call by SSKB comes as submissions to a Federal Government inquiry into residential strata insurance close today.
More than 40 submissions have been received but committee chairman Graham Perrett is calling for more so a true picture of the crisis is appreciated by the committee.
SSKB community manager for Cairns Mandy Sapper said for one body corporate the high cost of insurance had doubled body corporate levies in the past year.
"It is a four-star resort, located right in the heart of Cairns and many of the owners are retired and on fixed incomes and cannot afford the increased fees," she said.
"With each increase in insurance cost, the commission to the broker increases proportionally, exacerbating the increases. Therefore, one area for reform may be a set fee for commission for brokers.
"Another suggestion is to reduce or remove the stamp duty on policies.
"In addition, if all buildings are contained within a Community Titles Scheme, the body corporate insurance should cover the entire complex, not just buildings with common walls."
The Cairns resort had an insurance replacement valuation of $34 million in 2007 with the latest renewal for insurance $172,444 (including GST, stamp duty and fees), an increase of 201 per cent from 2008.
In 2010, it was $84,151.00, after $66,722.15 in 2009 and $57,583 in 2008.
In his submission to the inquiry Springfield body corporate chairman Don Cunningham is accusing insurance companies of colluding.
The retired insurance broker said their 12 unit buildings were insured for $2 million. In 2009-10 the annual premium was $2500, then rose to $3500 and last year the same company quoted $15,500 but they were able to get cover from another company for $5500.
Mr Cunningham said their buildings of concrete block with an iron roof were built in 1990 in accordance with the 1983 cyclone building code.
"Our buildings are of massive construction and therefore not subject to the same cyclone damage as an older timber house would," he said.
"It appears the premiums on dwellings have not increased anything like strata insurance premiums.
"This smacks of insurance industry collusion as the strata community is a captive market required by law to
insure."
