From: |
SP52948 owner |
To: |
Ron Sinclair BCS Strata Management |
CC: |
Paul Banoob Pica Group, Peter Bone BCS Strata Management, Bruce Copland, John Ward, Stan Pogorelsky, Maureen McDonald, Moses Levitt, Steve Luxmoore, Jeffery Wang, Raphael Hirschhorn |
Subject: |
SUMMARY: No response from Ron Sinclair about insurance for Lot 3 for one year and five months |
Date: |
9/11/13, 8:34 pm |
Hello Ron,
It is very interesting what passage of time and persistence can
uncover.
On 15 May 2012 you promised to contact me about missing public
liability insurance for owner of Lot 3 (as per Special By-Law that
was fraudulently approved by Mr. John Fry in 2003 - the adjourned
paper EGM claimed to have 74 proxy votes, which was impossible
because the first meeting failed due to lack of quorum, plus the
owner completed the work before asking for approval!).
Instead of ensuring that owner of Lot 3 had proper insurance and
enforce the Special By-Law, which is one of major duties of the
strata agency, you secretly initiated insurance claims for "defense
of Lot 3" with CHU on 28 August 2012, in spite of high risk, as
documented in correspondence between AJG and CHU.
Your actions have grave consequences.
a) Gallagher Australia (insurance broker) failed to seek any other
quotes except from CHU Insurance, which our complex used for
several years beforehand.
In the end, the total invoice paid to Gallagher Australia on 21
September 2012 amounted to $84,414.77 (GST inclusive), which was
staggering 74.38% higher than in previous year - September
2011.
Bruce Copland, in email to Raine & Horne Strata Sydney and Mr. John
Ward on 20 September 2010 (other members of the EC were excluded
from it), showed clear unhappiness with the insurance increases and
the whole process to get the quotes.
Sadly, that information was hidden from owners in the agenda for
the AGM 2012, and EC conveniently insisted on blaming me for the
"increases".
Direct loss to owners corporation due to lack
of additional quotes was at least $19,254.15 Reasonable increase in
FY 2012/2013 should have been between 12-20% (the Minutes of the EC
meeting held on 13 June 2012 - Item 10 confirmed
it).
In addition, lack of additional quotes was in
direct non-compliance with Strata Schemes Management Act 1996,
Section 80B, and Strata Schemes Management Regulation 2010,
Regulation 14.
b) As the copy of the email correspondence in the attachments
shows, Raine & Horne Strata Sydney left it to only one day
before the renewal to sort out the best option.
By that time, due to two main reasons:
* one Insurer declined to quote (Strata Unit Underwriters),
* CHU Insurance was worried our constant water ingress
issues that were prevalent since 2007.
c) Strata Unit Underwriters' reason not to quote was due to pending
legal defense claim. These claims are very secretive but the
evidence is coming up.
d) Another important issue (as seen in the email by Mr. Ron
Sinclair from Raine & Horne Strata Sydney on 10 August
2012):
EC member was some kind of client of Gallagher Australia and that
was why Raine & Horne Strata Sydney dealt with them (under
pressure, not because the strata agency wanted to use them).
e) Strata Manager Mr. Peter Bone, in email on 30 January 2013
confirmed that Raine & Horne Strata Sydney did not use this
insurance broker in any other complex, except ours, due to "orders
by the EC" (in reality, orders by one EC member alone).
f) In spite of several-million-dollar increase in our property
value this year, and all the ongoing issues with water ingress and
"legal cases", the insurance expenses paid to the broker decreased
by almost 10% in September 2013.
g) In addition, (also hidden in the agenda for the AGM 2013), the
total insurance claims for legal expenses for Solicitor Mr. Adrian
Mueller in FY 2013 are $24,919.31.
Reason CTTT Defence Lot 3
Claim Number
NH201212589-01
Incident Date 12/06/2012
Payment Date 03/09/2012
Amount $367.64
Reason CTTT Defence Lot 3
Claim Number
NH201212589-02
Incident Date 12/06/2012
Payment Date 07/12/2012
Amount $12,714.65
Reason CTTT Defence Lot 3
Claim Number
NH201212589-03
Incident Date 12/06/2012
Payment Date 29/04/2013
Amount $1,320.00
Reason CTTT Defence Lot 3
Claim Number
NH201212589-04
Incident Date 12/06/2012
Payment Date 29/04/2013
Amount $10,517.02
The Cash Book for FY 2012/2013 even hides these expenses in various
accounting codes.
h) Partial copies from two insurers show that owner of Lot 3
(published only several months ago) has/had two public liability
insurances, each in amount of $20,000.000.00, but there is an
interesting catch:
The GIO insurance policy was issued on 18 October 2012
(one day after the AGM 2012 and the CTTT Hearing) and
"backdated" to 13 September 2012
The APIA insurance policy was issued for period starting
16 November 2012 (one month after the AGM 2012 and
the CTTT Hearing)
The documents for all years before the AGM 2012 are missing, which
means that the Strata Manager FAILED to uphold the By-Laws of
SP52948 in this regard (and in many others). As part of SSMA 1996
Section 108, I have, for the final time, requested proofs that
owner of Lot 3 had public liability insurance for every year since
2003. It will be very unpleasant for parties involved if such
evidence cannot be provided.
i) Since CTTT cases SCS 12.32675 and 12/50460 did not really deal
with Lot 3 much (other issues were more critical), it will be
interesting for Raine & Horne Strata Sydney and the Executive
Committee to prove how, and in which way, insurance claims in
amount of $24,919.31 relate to "defense of Lot 3".
j) The third insurance payment was on 7 December 2012, and on 10
December 2012, Single EC member (without EC meeting) alone approved
the costs recovery through CTTT, but failed to notify them (and me)
that full amount was already recovered through fraudulent claim
with CHU.
k) Owners corporation, to this day, is not given full and precise
figures of claims and legal costs.
Finally, just to be precise and direct: you failed to act in
accordance with law, failed to act with duty of care, failed to act
responsibly, and wasted money that is NOT YOURS TO WASTE!
On Tue, 2012-05-15 at 13:07 +1000, Ron Sinclair wrote:
Attached please find a copy of the current cover of the strata plan. The policy is with
QBE via the broker Gallagher.
With regard to the insurance required for unit 3 exclusive use I have attached a copy
of the minutes of the meeting.
We do not have any correspondence other than advice to the owner of lot 3 with a
copy of the meeting minutes.
I have written to the owner of unit 3 requesting a copy of their insurance cover.
I will advise upon receipt of same.
Regards
Ron Sinclair
Raine & Horne Strata-Sydney
Level 1, Building D, 240 Beecroft Road Epping NSW 2121
-----Original Message-----
From: EPPI-P20 scan@bcssm.com.au
Sent: Tuesday, 15 May 2012 12:59 PM
To: Ron Sinclair
Subject: Scan Data from EPPI-P20
Number of Images: 2
Attachment File Type: PDF
Device Name: EPPI-P20
Device Location:
-
CHU-Secret-Insurance-Request-by-Ron-Sinclair-and-Rayne-Horne-Strata-Sydney-28Aug2012.pdf
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CHU-NH201212589-Secret-Insurance-Claims-by-Ron-Sinclair-and-Rayne-Horne-Strata-Sydney.pdf
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RE SP52948 insurance due 2109-CHU-Insurance-and-insurer-Strata-Unit-Underwriting-refusing-to-quote-due-to-pending-legal-claim-20Sep2012.msg
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RE Budgets and Accounts-EC-member-worried-about-insurance-19Sep2012.ms
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Re Insurance Valuation SP52948 and 53855-Strata-Manager-complaining-about-Gallagher-broker-and-EC-member-response-1Aug2013.msg
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RE SP 52948 - Insurance Valuation-EC-member-comment-Solicitor-Adrian-Mueller-insurance-claim-4Sep2012.msg
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SP52948-CHU-and-Strata-Manager-high-risk-insurance-claim-for-legal-costs-1Aug2012.pdf
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RE SP52948 insurance due 2109-CHU-Insurance-and-insurer-Strata-Unit-Underwriting-refusing-to-quote-due-to-pending-legal-claim-20Sep2012.msg