Tip 59 – Insurance – Commissions

If a Body Corporate Manager, or caretaking service contractor, is going to receive a commission from the insurer (or a related party) then before the Body Corporate enters into the insurance contract the commission must be disclosed.  If you have received a disclosure, take the time to understand what the commission is for; for example is it just a referral fee or are there obligations that come with the commission?  Common obligations can include providing assistance to the insurer with claims processing.  Only after you have worked out what the commission is for, can you properly understand if there is a potential for a conflict of interest between the obligations which your Body Corporate Manager or caretaking service contractor owes you, and the obligations that they owe the insurer.