This article discusses QLD insurance disclosure rules, explaining why expiring policies must be disclosed at the AGM and how renewal processes are handled under current legislation.
Question: How should our body corporate deal with insurance motions at the AGM when the policies in place at the time of notice expire before the meeting date?
Could you please clarify an aspect of the Regulations (Accommodation Module) concerning insurance? Section 186 refers to “each policy of insurance held by the body corporate under this part and in force when notice of an annual general meeting is given”.
Our AGM is held at the end of October each year, but the insurance policies that are in place when the AGM notice goes out in September all expire at the end of September, according to the certificates of currency.
The statutory insurance motion at the AGM says: “Insurance policies detailed below and attached be confirmed”, but the attached policies are always the ones that expired in September. Why are owners voting in October to confirm or approve policies that have already expired?
The motion also says: “and further that the Committee be authorised to obtain quotations and to renew the insurance policies for the following year to full replacement value”. I understand obtaining quotes before the AGM, but I would have thought owners should receive copies of the new policies they are being asked to approve. Am I misunderstanding how section 186 works in this situation, or should the insurance motion and documentation be handled differently?
Answer: The expiring policies must be disclosed at the AGM, but approval of the renewal is not required unless the owners have chosen to impose that restriction.
Section 186 of the Body Corporate Community Management (Accommodation Module) Regulations 2020 requires the body corporate to disclose at the AGM the insurance policies that are in force when the AGM notice is issued. This is why the policies attached to your AGM papers are the ones expiring in September. They are the policies that existed at the time the notice went out. Owners are not being asked to approve these policies – the motion simply confirms they have been properly disclosed as required by the Act.
Before the 2020 updates to the regulation modules, insurance that exceeded the committee spending limit did require approval at a general meeting. This created practical issues, particularly when policies expired at different times to the AGM. To fix this, the legislation was changed so that the committee can now renew insurance without needing owner approval, regardless of the cost, unless the owners have specifically restricted the committee’s authority by resolution.
Because of these changes, owners do not vote on the new or upcoming insurance policy at the AGM. The committee obtains quotes and renews the cover before expiry, which is what your current motion correctly authorises. While owners don’t need to approve the new policy, the committee can still circulate the updated Certificate of Currency once the renewal is completed for transparency.
In short, your current process aligns with the legislation: the expiring policies must be disclosed at the AGM, but approval of the renewal is not required unless the owners have chosen to impose that restriction.
Tyrone Shandiman
Strata Insurance Solutions
E: tshandiman@iaa.net.au
P: 1300 554 165
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisenent Australia AFSL No 240549, ABN 15 003 886 687.
This post appears in the February 2026 edition of The QLD Strata Magazine.
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