Owners corporations must insure as a basic function, and this is one of the key functions the Manager performs. To do this the Manager must by law be a trained Authorised Representative who can maintain claims history collect and pay premiums and attend to administration of claims.

It is the owners corporation not the Manager that decides where to place the insurance. Insurance commissions are the result of an administrative cost saving. Management fees are currently subsidised by insurance commissions. Premiums are the same for owners corporations whether the owners corporation deals directly with the insurer or uses the services of the Manager to arrange the insurance.
OCV endorses the current practice of managers deriving insurance commissions on insurance premiums paid on behalf of owners corporations. The conditions applicable to endorsement by OCV are as follows:
• Such fees and commissions do not exceed 20% of total premium payable by the owners corporation.
• In all cases the best interest of the client is the paramount criterion when presenting quotations from particular insurance companies or placing insurance with any insurance company or broker.