69. In this Division, unless the context otherwise requires —
“damage policy”, in relation to a subdivided building, means a contract of insurance providing, in the event of the subdivided building being destroyed or damaged by fire, lightning, explosion or any other occurrence specified in the policy —
the rebuilding of the subdivided building or its replacement by a similar building in the event of its destruction; and
the repair of damage to, or the restoration of the damaged portion of, the subdivided building in the event of its being damaged but not destroyed,
so that, in the case of destruction, every part of the rebuilt building or the replacement building and, in the case of damage, the repaired or restored portion, is in a condition no worse nor less extensive than that part or portion or its condition when that part or portion was new; and
for the payment of expenses incurred in the removal of debris and the remuneration of architects and other persons whose services are necessary as an incident to the rebuilding, replacement, repair or restoration;
“subdivided building” includes —
subsidiary proprietors’ improvements and subsidiary proprietors’ fixtures forming part of the subdivided building other than paint, wallpaper and temporary wall, floor and ceiling coverings;
a building consisting entirely of common property; and
anything prescribed as forming part of a building for the purposes of this definition,
but does not include —
fixtures removable by a lessee at the expiration of a tenancy; or
anything prescribed as not forming part of a subdivided building for the purposes of this definition.
[LT(S)A, s. 70]
—(1) Unless otherwise directed by a resolution by consensus, the management corporation constituted in respect of a strata title plan shall insure every subdivided building shown in the strata title plan and keep the building insured under a damage policy.
(2) A damage policy may provide that, instead of the work and the payments specified in the definition of “damage policy” in section 69 being carried out or made upon the occurrence of any of the events specified in that definition, the liability of the insurer shall, upon the occurrence of any such event, be limited to an amount specified in the policy that is not less than an amount calculated in the prescribed manner.
[LT(S)A, s. 71]
—(1) In addition to insurance effected by a management corporation under section 70, the management corporation shall effect insurance —
in respect of any occurrence against which it is required by law to insure, including any insurance required to be effected by reason of the provisions of the Work Injury Compensation Act (Cap. 354);
in respect of damage to property, death or bodily injury occurring upon the common property for which the management corporation could become liable in damages; and
against the possibility of the subsidiary proprietors becoming jointly liable by reason of a claim arising in respect of any other occurrence against which the management corporation pursuant to a special resolution decides to insure.
(2) Insurance effected under subsection (1)(b) shall be for a cover of such amount as the management corporation determines that is not less than an amount prescribed by the regulations.
(3) A management corporation may insure any property which it is not required to insure under this Act and in which it has an insurable interest.
(4) For the purposes of a policy of insurance effected under subsection (1)(b), the common property shall be deemed to be vested in the management corporation.
(5) Regulations made under this Act may vary the amount of minimum cover required by subsection (2) for insurance effected under subsection (1)(b).
(6) A subsidiary proprietor may bring against the management corporation of which the subsidiary proprietor is a member any action that the subsidiary proprietor may have brought against the management corporation if the subsidiary proprietor had not been a member of the management corporation.
(7) Where an insurer of a management corporation admits a claim by the management corporation based on an act or omission by a subsidiary proprietor who is a member of the management corporation, the insurer shall not have a right of subrogation in relation to the subsidiary proprietor based on that act or omission unless it was proved that the act or omission is wilful.
[LT(S)A, s. 72]
—(1) Nothing in this Part shall limit or affect any right of a subsidiary proprietor to effect insurance.
(2) Insurance effected by a subsidiary proprietor shall not affect, and shall not be taken into consideration in determining, the amount payable to a management corporation under a contract of insurance entered into between it and an insurer under this Part, notwithstanding anything in that contract of insurance.
[LT(S)A, s. 73]
—(1) A contract of insurance may be entered into by a subsidiary proprietor in respect of damage to his lot in a sum equal to the amount secured at the date of the contract by mortgages of and charges affecting his lot and where such a contract is in force —
subject to the terms and conditions of the contract —
any payment to be made under that contract by the insurer in respect of damage shall be made to the mortgagees and chargees whose interests are noted thereon in order of their respective priorities; and
the amount of the payment shall be the amount stated in the contract, the amount of the loss, or an amount sufficient at the date of the loss, to discharge mortgages of and charges affecting the lot, whichever is the least amount;
where the amount so paid by the insurer equals the amount necessary to discharge a mortgage of the lot, the insurer shall be entitled to an assignment of the mortgage; and
where the amount so paid by the insurer is less than the amount necessary to discharge a mortgage of the lot, the insurer shall be entitled to a sub-mortgage of that mortgage to secure the amount so paid on terms and conditions agreed upon as provided in subsection (2) or, failing agreement, on the same terms and conditions as those contained in the mortgage.
(2) For the purposes of subsection (1)(c), any insurer and mortgagee may at any time, whether before or after a contract of insurance referred to in subsection (1) has been entered into by a subsidiary proprietor, agree upon the terms and conditions of the sub-mortgage.
(3) A contract of insurance entered into as referred to in subsection (1) shall not be liable to be brought into contribution with any other such contract of insurance except another such contract of insurance which —
is in respect of damage to the same lot; and
relates to the same debt,
as that referred to in the contract of insurance first-mentioned in this subsection.
[LT(S)A, s. 74]
74. Subject to any order made under section 77 or 78 of the Land Titles (Strata) Act (Cap. 158) (relating to the termination of a strata subdivision scheme), where a management corporation receives payment of moneys from an insurer in respect of destruction of or damage to a subdivided building, those moneys shall immediately be applied by the management corporation in rebuilding, replacing, repairing or restoring the subdivided building, as the case may require.
[LT(S)A, s. 75]