Signing claim forms in the sectional title environment.

[Updated: 2 June 2025]

When dealing with insurance claims in sectional title schemes, it’s important to consider the Sectional Titles Schemes Management Act 8 of 2011 (STSMA), its Prescribed Management Rules (PMRs), and the Financial Advisory and Intermediary Services Act (FAIS Act), 37 of 2002. As technology evolves, with online systems, apps, call centres and digital tools becoming more common, we need to ensure that trustees, managing agents and owners remain legally compliant in the way claims are handled.

Insurance and the right to claim

Insurance is, at its core, a contract. The insured pays a premium in exchange for financial relief when a specified loss occurs. Once that loss occurs under qualifying circumstances, the insured has the right to claim, i.e. make a legal demand for relief.

In sectional title schemes, the insured is the body corporate (as per STSMA section 3(1)), and it is technically the body corporate that formally makes the claim. While individual owners are noted as co-insured for their respective rights and interests, they are effectively witnesses to the claim rather than parties to the contract. Importantly, the trustees carry the responsibility not only to ensure a claim is lodged but to oversee that reinstatement takes place, not merely a financial payout. The practical way to deal with this is to have the owner initiate the claim process, in their own words, with the trustees/management attesting to the claim.

Claim forms and proper authority

A claim form is a formal, legal document in a format prescribed by the insurer. For a claim to be admitted, the insurer needs sufficient, accurate information. According to PMR 10, a claim form must be signed by two trustees, or one trustee and the managing agent, supported by a resolution kept on record.

This is not mere red tape, it’s an attestation. Unfortunately, many owners feel frustrated when told that trustees must sign off on their claim form. It helps to avoid the word “approval” and rather explains that trustees are attesting to the claim, not necessarily endorsing or agreeing with its merit.

If trustees feel a claim lacks grounds, we suggest they note their concerns on the form or via an appendix. This ensures the insurer considers the claim, while the trustees protect the collective interests of all owners. It also helps the insurer assess the matter more fully.

Geysers, common property, and PMR 31

When it comes to geysers and hot water installations, PMR 31 applies:

“Notwithstanding that a water-heating installation forms part of the common property and is insured by the body corporate, a member must maintain, repair and, when necessary, replace such an installation which serves that member’s section or exclusive use area…”

This means that while the installation may be insured, responsibility for maintenance and replacement lies with the owner. In fairness, owners should have some control over reinstatement, especially when a replacement is required.

From a practical point of view, we don’t expect owners to wait days for a claim form to be signed before resolving a geyser issue. Instead, a sound geyser claims procedure should be in place. For example, using a pre-approved plumber with set rates or, ideally, the insurer’s call centre and panel of service providers. This depends on the scheme dynamics and the particular call centre that the insurer engages.

Owners may prefer to upgrade to longer-lasting geysers (e.g. stainless steel), and in our view, they should be given that option. Geysers on common property, however, remain the body corporate’s responsibility. Best practice is to isolate water (switch off the geyser) if a leak is detected, then notify the owner and follow the procedure, such as reporting the issue via the appropriate call centre.

Ultimately, both owners and trustees must be proactive. A geyser claims procedure is essential.

Digital claims and modernisation

When a claim is made after the fact, the usual PMR 10 signing procedure applies. However, in our fast-moving, tech-driven world, claims initiated via call centres or apps should still be brought to the attention of scheme management as early as possible.

At Addsure, our ATON system allows claims to be logged and tracked online, ensuring that trustees and managing agents are looped in immediately. Whether traditional forms or online systems are used, the core principle remains, i.e. trustees should maintain oversight and risk control within the scheme.

Practical advice

Owners should act swiftly to limit damage. Engaging the insurer’s plumber or call centre immediately makes sense, even before formal claim documentation is signed. The quicker the insurer is notified, the sooner mitigation and reinstatement can begin.

Digital tools (apps, online forms, call centres) have replaced the old norm of simply emailing a blank claim form. Today’s approach blends various tools to serve the needs and tech capabilities of all stakeholders.

That said, we need to always comply with the relevant legal framework, both in terms of sectional title law and FAIS legislation regarding intermediary services.

Roles of managing agents and brokers

Managing agents should ideally act as postal agents, not insurance brokers. They may sign to ratify documents, but should avoid processing claims themselves.

That responsibility lies with the insurance broker, who, as a registered financial services provider, should handle legitimate claims, submit them to the insurer, and monitor the process on behalf of the body corporate.

Addsure facilitates this process via ATON, providing transparency and convenience while remaining compliant. This offers the best service and keeps traditional claim form processing well away from the managing agent’s desk.

In summary:

• Claim forms should be correctly signed (per PMR 10).
• Digital claims (apps, online, call centres) still need to be authorised appropriately.
• Managing agents should avoid processing claims, leaving that to the broker.
• Trustees should retain ultimate oversight of all claims in the scheme.
• A solid geyser claims procedure is essential for practical and efficient management.