—(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]