Insurance advisors are often not able to attend AGMs where important insurance issues will be discussed. The more recent changes to the compulsory agenda include a few additional insurance items such as liability and fidelity. It is sometimes outside the experience or skillset of the trustees or chairperson to deal with adequately.
To help with this particular issue, Addsure introduced a useful resource to use at AGMs when dealing with the insurance section of the meeting. Think of it as an insurance song sheet that ensures everyone is on the same page with regards to handling insurance-related matters in a correct and uniform manner at the AGM.
Almost exactly one year ago, we published a blog on how we envisaged insurance to be dealt with at meetings under the new prescribed agenda items. Since then, we have attended, observed and participated in such meetings with a view to finding the best possible way of dealing with insurance issues. The insurance advisor can’t attend each and every AGM, particularly where quorums are often not achieved and meetings reconvened the following week.
We are finding that most experienced managing agents are becoming better versed with the new agenda and are doing a pretty good job of it in coaching trustees on the new meeting protocols. Insurance is more of a challenge now as matters such as liability and fidelity need to be dealt with. Many people, including several attorneys who do not adequately understand the meaning and implications of these terms, are expected to present facts and figures pertaining to such terms at an AGM.
In order to find a solution to this problem, Addsure developed – and will continue to modify the The Sectional Title Insurance AGM Guide. The idea is that the chairperson read through the handout brochure at the meeting while owners follow on the same sheet. This prepared sheet ensures that insurance matters are presented correctly, clearly and professionally, and that all information is presented in the correct order. It further explains the meanings of the cover discussed and explains the SRV (Schedule of Replacement Values) by way of numbered notes. It is designed and written to function as a quick reference guide for trustees.
The latest Sectional Title Insurance Guide (2017 edition) is now also available and provides further in-depth guidance on sectional title insurance matters, particularly for the trustee but also managing agents, owners and insurance advisors. The Sectional Title Insurance AGM Guide and the Sectional Title Insurance Guide complement each other and are designed to work together in the overall advice process.
Author: Mike Addison, Addsure
Contact Addsure – The Leaders in Sectional Title Insurance – for fit and proper advice from advisors who understand Sectional Title. Contact us in Johannesburg (011) 704-3858; Durban (031) 459-1795; Cape Town (021) 551-5069