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Bill 150 : the fund for self-insurance raises more questions than answers

by

Andrea Lubeck

11 April 2018 11:30

Photo : Unsplash

In its current form, the bill 150 provides that the trade unions of condominium shall, in addition to the provident fund, establish a fund for self-insurance. If several articles mention the extent, they raise questions, notably on the part of Clement Lucas, a lawyer at the firm de Grandpré Joli-Coeur and Richard Lahaye, licensed appraiser at Capital HBAS, speakers at the symposium in spring of the Grouping of the managers and owners of Québec (RGCQ).

This fund is intended to be used exclusively for the payment of the exemptions provided by the insurance policies contracted by the union. However, the proposed legislation does not specify what will be the minimum contribution or what franchises should be covered by the fund.

Responses by regulation of the government

“Article 213 of the draft law underlines that the fund for self-insurance based on deductibles of insurance taken out by the union ; what is this means ? Will we have to contribute to the fund depending on the deductible the higher or for the most common risks ? The syndicates of co-ownership will they have a time limit to enable the constitution of the fund ? It returns the problem and the answers to these questions later in determining everything by the rules “, supports Me Lucas.

The bill 150 indicates that the fund is self-insurance, will be fed from the contributions of the co-owners for common expenses. In case of default of payment, the same measures are made available to the syndicate of co-ownership to collect the amounts of the co-owners in default, or the loss of the right to vote, the legal mortgage and the removal of a director.

Furthermore, the text specifies that the funds must be liquid and available in the short term. Yves Joli-Coeur, lawyer emeritus at de Grandpré Joli-Coeur said in the conference during the conference that the bill gives to the fund for self-insurance the same protection as the pension fund and that it will be elusive of the creditors of the syndicate of co-ownership.

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