A team of sectional title role players gathered in 2010 to find a solution for Body Corporate Schemes who were suffering from a chronic shortfall of cash due to the non-payment of levies by owners. What seemed to be an impossible task, the STILUS team created a simple solution in the form of a Levy Insurance product which could be added to any Body Corporate Policy, known in the insurance industry as a Value Added Product (VAP)
Upon interviewing trustees of schemes we heard the same story over and over again “we cannot paint the building because the owners have not paid their levies” or, “we cannot repair the lift because the owners could not afford the levies”.
We could see that the trustees as well as their managing agents became increasingly frustrated with the lack of funds in order to pay basic expenses such as water, electricity, lift maintenance etc. Owners would decide on a budget at the AGM and told the incoming trustees to send levy accounts to all owners.
Easy to say, but when it comes down to the nitty gritty, owners are unable to pay levies for many reasons; unemployment and ill health for example. This lack of Levy collection puts extreme pressure on any scheme.
We understood the frustration of the trustees so the STILUS team created a permanent solution for all schemes in the form of a VAP.
Now remember, STILUS is not an insurance company, but acts as a levy claims assessor who works on behalf of the insurer of the Body Corporate. Levy claims are sent to the insurer by the trustees or the managing agent. We work closely with Managing Agents who send their claims to the insurer, who, in turn forwards the claim to STIILUS to “assess” the recoverability of the levy claim. In assessing the recoverability of Levy Claim, we check, amongst other things, the good and proper governance of the body corporate.
We support the managing agent by assisting them with the preparation of the various documents required by the Insurer before a claim is paid. With the introduction of the fairly recent legislation, the paperwork required to make a legally recoverable levy claim can be quite a daunting task for the credit controller/ managing agent.
This is where the STILUS team comes into their own. Our team have been assessing claims for at least 10 years. They are there to assist the managing agent, to make the claim as painless as possible. Our experienced claims team are here to help you and guide you every step of the way.
The collation of the various documents required for a claim is the single most important factor. Once the claim has been lodged with the insurer, they will immediately send the claim details to STILUS for assessment. We will collect all the necessary bits of information and submit it to the Insurer. We will not submit a claim for payment to the Insurer unless it is 100% correct. If this is not done correctly the client has the risk of the claim being declined, which of course is a total waste of time.
As our claims team submit the claim on the insurer’s computer system, any unnecessary delays are avoided. The first claim is the most time consuming of all; think of it as being FIC’D for the first time! thereafter its easy-peasy.