10 September 2018 13:30
The Quebec department of Finance is seeking comments on the reform in the area of insurance of condominiums following the adoption, on 13 June, the draft law 141.
The Act aimed primarily to improve the supervision of the financial sector, the protection of the money deposits and the plan of operation of financial institutions brings several changes to the civil Code, which will directly affect the co-owners and syndicates of co-ownership, explained Yves Joli-Coeur, lawyer emeritus at De Grandpré Joli-Cœur , and the founding president of the Grouping of the managers and owners of Québec (RGCQ), in interview to the Newspaper of insurance.
“Many of the new provisions of the civil Code shall come into force when the regulations come into force. We are the trailer of these regulations. The fact that the department to act quickly, pleases us “, he added. He says that other groups have until 2020 to determine the regulations for this act. Me Joli-Coeur hopes that the regulations will be adopted before the holidays.
In spite of the election period in course, Me Joli-Coeur is confident that the regulations will be adopted, even if a new party came to power on the 1st of October next.
“In the debates, all parties were in agreement with the proposed reform. However, the question that remains is that of the speed of the implementation of these regulations. The economic impact on the owners is important, and several issues remain, for the moment not answered, ” -he stressed.
Several measures to clarify
Several measures pertaining to the condominiums and their union require clarification which will come with the implementation of the regulations. In particular, the requirement that the syndicates of co-ownership shall constitute a fund to self-insurance to cover the deductibles imposed by the insurance policy.
However, it is impossible to know how much the unions will have to put aside in this fund and how long they will have to raise the sum, since these details will be determined by the regulations.
In addition, act 141 provides that insurers are required to establish franchises considered reasonable. By contrast, the definition of what a franchise is reasonable is not specified in the act. The government will determine by regulation the criteria under which a franchise is reasonable or not.
A position to define
Me Joli-Coeur has not been able to identify what would be the position of the RGCQ on the regulations, since their comments will be written over the next few weeks. It indicates, however, that he supports the legislative framework presented in the law.
“We support a framework that requires the enforced savings. It was realized that in society, if people are not forced to put money aside, for example for their retirement savings, they will not do it. Our position will therefore in this sense, since this kind of measure is in the collective interests of co-owners “, he concluded.