November 2, 2018 09:30
The Chamber of damage insurance (ChAD) has submitted its comments to the public consultation on the proposal for a regulation on the insurance of blocks of flats, announced by the government on 7 September last.
“Franchises unreasonable amount to be charged to the fund of self-insurance, protection-related risks of usual complexity of the process of settlement of claims : the issues raised in the consultation have an impact on the syndicates of co-ownership and co-owners are numerous and important “, tells Me Jannick Desforges, president and acting executive director of the ChAD.
The management of claims is not simplified
The organization criticizes the fact that nothing is proposed to facilitate the management of disaster, which was one of the objectives of the government in the wake of the adoption of the draft law 141. “During a disaster, the complexity of the claims process due to the number of stakeholders involved is one of the main concerns of consumers, but also of the claims adjusters investigate, evaluate and negotiate the settlement of a claim. For the latter, the absence of clear legal rules in the field makes the task daunting, ” says the Chamber.
She points out that these complexities found in the field arising from the application of ” some of the rules agreed between the insurers, which are not known or even accessible to the general public and which may even, on occasion, contradict the principles embodied in the civil Code of Quebec “.
Funds self-insurance, and deductibles
In its recommendations, the board suggests that the fund of self-insurance has an amount that can cover at least two times the amount of the deductible provided for in the contract of the syndicate of co-ownership. She wants ” to take into account the possibility that more than one claim [to occur] in a year, or an increase of the deductible is imposed by an insurer when the renewal of a contract “.
It urges the government to provide tags to determine what is a franchise, unreasonable, without which the several situations of “adverse” could occur. She cites the maintenance of a franchise to be unreasonable by the union for reduce insurance premiums, or as a broker or agent may not be able to tell his client what is a reasonable amount of deductible. The Chamber therefore proposes that this level takes into account the number of units and it is simple to establish.
The risks associated with water, such as risk usual
The Chamber considered that the risks associated with the flow of water as a risk to normal and asks the government to make a complete list of those-to clarify the obligations of the syndicate of co-ownership. The organization cites data from the insurance Bureau of Canada , which suggested that more than 95 % of the claims submitted by the trade unions of condominiums are related to the waters, and that there is therefore a risk common.
“Thus, all condos should be insured for these risks called “standard” and have the certainty to be provided for them without having to analyze the contract in detail, ” writes the Chamber in his memory.
She also claims to be concerned about the fact that insurers can exclude them. The Bedroom highlights the uncertainty surrounding the possibility of denial of coverage by insurers for a level of risk permitted by the adoption of bill 141, but who contravenes the obligation of the union to ensure all the risks common.
Liability insurance mandatory
Also, the organization suggested a more thorough analysis of the amount ideal liability insurance. Currently, coverage in the amount of one million dollars is included in a home insurance policy, but the Chamber is requesting that an analysis be made as to whether this amount is sufficient. If it turns out that a coverage greater than that already proposed is necessary, the Chamber argues that the pricing does not make the cost of the coverage is ” cost prohibitive “.
In addition to questions of the government, the Chamber also questions to find out what is the ministry that would be responsible for enforcement of these provisions and what will be the mechanisms to change the law, to improve it or to improve it.
“If the professionals can rely on to explicit rules in matters of insurance of the condominium, you will be able to avoid several unwanted situations. Moreover, it is the duty of the professional adviser the insured in order to offer them adequate protection “, adds Me Desforges.