Commonhold and Leasehold Reform Bill [H.L.] — 22 Oct 2001 at 17:24

moved Amendment No. 136:

After Clause 95, insert the following new clause--

"MANAGEMENT FUNCTIONS: INSURANCE

(1) Notwithstanding the specific terms of any lease of the whole or part of the building, any person responsible for management functions in relation to the premises shall ensure that the entire building is insured under a single insurance policy.

(2) Any person responsible for arranging an insurance policy under subsection (1) shall be under a duty to obtain best value for the service charge payers in procuring a suitable policy.

(3) If, in the opinion of any party to a lease, the insurance policy arranged in accordance with subsection (1) does not represent best value for the service charge payers, they may refer the matter to the leasehold valuation tribunal for determination.

(4) Any reference of an insurance policy to a leasehold valuation tribunal under this section shall be supported by an alternative quotation for insurance cover from a recognised and reputable supplier to support the case; and the leasehold valuation tribunal shall not consider any such reference unless it is supported by such an alternative quotation.

(5) The duty to arrange insurance under subsection (1) applies notwithstanding the existence of a dispute which has been referred to the leasehold valuation tribunal.

(6) In determining any dispute referred to it under subsection (3), the leasehold valuation tribunal shall take into account--

(a) the extent of cover procured, and

(b) the level of premium payable by individual service charge payers."

On Question, Whether the said amendment (No. 136) shall be agreed to?

Their Lordships divided: Contents, 70; Not-Contents, 130.

Debate in Parliament | Historical Hansard | Source |

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