Management Company withholding insurance claim

S

sunnyside

Registered User
Messages
59
Hi,

I have had a recent claim on my apartment. All went well and the assessor and I agreed a figure, the insurance company paid out the money, but to the management company of the complex as they are the policy holders. The mgt. company will not give me the money, saying they are withholding it for this years mgt fees even though they have yet to have an AGM and issue us apartment holders with invoices etc.

I have got onto the insurance company who won't talk to me without the mgt companies permission as they are the holders of the policy. I have no hope of getting that permission. Insurance company are saying that they have done there bit as they paid out the money and its really now my own issue with the insurance company. .....any ideas??

To make matters more complex, my name was also on the cheque sent by the insurance company, but somehow the mgt company got the cheque cashed without my signature. How would I go about getting a copy of the cheque to prove this possible fraud? Remember insurance company have stated they won't talk to me anymore without the policy holders written permission.

I know its a toughie,..thanks for all advice,...
 
Unless you have a history of non payment or late payment I can see no reason for connecting these matters. ?I'd write to the MC requesting the details as to why they are acting like they are. I woukld then advise them that you will be instructing your solicitor to issue proceedings for which full costs will be borne by the MC
 
This makes my blood boil!!!!

The insurance company has discharged their liability by making payment to the named insured under the policy. The insured is normally the management company. You, as an apartment owner, are a member of the management company, therefore, you are in essence along with the other apartment owners, are the insured under the policy. What is not clear from your post is whether it is the management company that is holding payment, or whether it is the management agents(they are employed by the management company to maintain the property, ie the likes of Wyse, O dwyer property managemnt etc), who are withholding payment. I suspect, it is the latter as it is normally them who collect management fees.

It is not common practice for the apartment owners name to be on a cheque. Legally,the Insurance company can only make out the cheque in the name of the policyholder..eg, the name of the management company ( NOT the agent). I suspect that the management company ( not agent) may have mandated that all cheques due under the policy be made payable to the management agent, who are now holding your money.

As i said, the insurance company has discharged their liability. This is a matter between you are your management company. It would seem that they have authorised the management agents ( who, may i add are your servants and are paid for by the management fee) to cash a cheque that should be ear marked for you.

The main question is, has the management company committee acted outside of their authority in allowing your payment to go to the managment agents? I suspect that they may have. I disagree with Mercman only insofar as i wouldnt write to anybody, but i would instruct my solicitor to take the matter in hand immediately. I would also instruct my solicitor to advise that as repairs are being halted by the cheque being withheld, you will have no option but to avail of alternative accommodation at a cost that will be passed onto the management company committee and to the management agents. Of course, threaten them will your legal costs.

The management agent has no authority to give permission or otherwise to the insurance company and furthermore, the insurance company have no right to accept such an instruction. The management agent is NOT a party to the policy. Tell the insurance company that as a member of the management company, YOU are the insured, and it is your right to know what payment has been made relevant to you under the policy.

If the management committee has given the money to the management agent without proper authority, then they have a case to answer. As i say, kick up hell ( not very professional i know), but i have found in the past that this works best in these situations with people who make up the rules as they go along.

Do let me know how you get on.

Claimsman
 
Thanks for the advice.
To clarify.

The developers have yet to hand over the building to us the owners, so they are in affect still the managment company and indeed are acting as managing agents at the moment too. So it is the people I bought the apartment from who have taken this money from me,..now thats galling,..!!

I have kicked up a fuss and written countless notes to the owners and threaten all sorts,..they keep ignoring me.

I have also pointed out to the insurance company that the aprtment isn't fixed yet and indeed they have been somewhat hoodwinked by the managment company as the money never ended up with me. The insurance guy basically is saying its not their problem. They are out of the loop once they sent the cheque.

There has to be some recourse somewhere,....?


Thanks for all the assistance.
 
And they are right -- the Insurance Company have performed. You need to tell all the other owners and either take over the existing MC or form a new Management Company.
The likelihood is that your Insurance Claim is being used for something else but not your claim. As I stated earlier, it is now time to get your solicitor involved. Hoiw much of the development has yet to be completed ??
 
The development is completed.
We have tried to take over the building but there are legacy debts there, so thats at a bit of a stale mate at the moment.

So, am i right in thinking my only option is to get my solicitor to write to them re: the chq? and hope that moves them on?

The insurance company won't talk to me,..won't give me a copy of the cheque etc. Is there a way to get a copy of the cheque?

Thanks so much
 
I have dealt with a number of claims where the same issue has come up.
I have generally found the constant phone calls does work if not get your solicitor to chase up.
I would also sugest reporting the matter to the financial regulator as they would be interested to hear about the non release of a claim settlement cheque.
 
Ed054 said:
I would also sugest reporting the matter to the financial regulator as they would be interested to hear about the non release of a claim settlement cheque.
Click to expand...

Ed, I am not doubting you at all but why would the Financial Regulator get involved in a Company matter. The Insurance company released the cheque to the MC who are the Insured. Surely the correct thing is to sue the developers who are possibly on shaky ground anyway and it seems that they have pocketed the claim money in the name of the MC. A good case of fraud it sound like to me.
 
mercman said:
Ed, I am not doubting you at all but why would the Financial Regulator get involved in a Company matter. The Insurance company released the cheque to the MC who are the Insured. Surely the correct thing is to sue the developers who are possibly on shaky ground anyway and it seems that they have pocketed the claim money in the name of the MC. A good case of fraud it sound like to me.
Click to expand...

The OP's interest was noted in the policy and the management company are acting on his/her behalf as is the same for the owners of all the apartments in the development.
As the management company are acting as an agent they have responsibilities to the ultimate owner of the policy (who also pays for the policy) and in that regard it is there responsibility to make sure that all claim monies are passed to the owner of the damaged property and in this case they have failled to do so.
In that regard they would fall under the the ever so watchful eye of the regulatory authority!
 
Ed054 said:
they would fall under the the ever so watchful eye of the regulatory authority!
Click to expand...

Oh don't we all wish !! I sent a file to them this week with pure basic factual information in relation to matters relating to a Financial Institution anf they replied that they will be unable to answer or discuss anything further with me as the matters must remain confidential under some Act. And the amount was a bit more than a small Insurance claim, so don't hold your breath waiting.
 
Ed, i completely agree with Mercman..( i have the exact same response as you have had Mercman)..the OP has had a frustrating time enough, without sending him to the regulator. What a toothless useless sleeping guard dog that is!!! (Mods, that is fair comment against the regulator).If the Op is reading this, he should do three things...issue proceedings, issue proceedings and yeah, you guessed it, issue proceedings!
 
Claimsman, thank you for agreeing with me. I could write a book concerning Financial Providers in this country. And I have a Web site to get going as soon as a High Court appeal by an FP has been heard. Gangsterism at its best, from the Very Top down, by the largest provider of Investments in the country. They make me puke.
 
mercman said:
Claimsman, thank you for agreeing with me. I could write a book concerning Financial Providers in this country. And I have a Web site to get going as soon as a High Court appeal by an FP has been heard. Gangsterism at its best, from the Very Top down, by the largest provider of Investments in the country. They make me puke.
Click to expand...

I don't disagree with you or claimsman I was only pointing out another option.
I also cannot disagree with your views of the regulator.
 
Hi all, firstly thanks for taking such time to reply.

Am I right in thinking there are possibly two separate issues here.

1) The fact that they won't pass on the majority of the claim to me. I should get a solicitor to issue proceedings against them.

2) The fact that my name was on the cheque, yet somehow they managed to get it cashed. Is this not a criminal act / fraudulent act (same thing?)
I have asked the insurance company for a copy of the cheque - they have refused. I have discovered where the management company have their bank a/.c - again no luck there. Should I contact the guards about this now?

As an aside, one of the developers / management company is an accountant,....does this help at all, can I use this in gaining me leverage or anything.


Thanks again. You all have been very kind
 
it seems a tragedy that it is so easy for these developers to get away with this. And I am the one stressed and will have to pay for solicitors etc.
 
And that is why I mentioned that you should write to them immediately advising them of your intentions of passing the matter to your solicitors and in the same correspondence advising them that all costs will for their account. The good news is that the MC will not be going anywhere and your costs will have to be paid sometime in the future regardless of the developer or accountant.
 
would that be a realistic option?
Is it very timely, expensive?
Can i represent myself or do I need a solicitor?
Thanks
 
sunnyside said:
would that be a realistic option?
Is it very timely, expensive?
Can i represent myself or do I need a solicitor?
Thanks
Click to expand...
It will cost you about €10 and you do not need a solicitor. I'm not certain if they will take on this kind of claim, though. Google for their guidlines and review them carefully.

They don't normally take claims relating to property, but I do know of one case of a successful claim for a solicitor's fee relating to a property transaction.
 
You must log in or register to reply here.
Back
Top