Definition : Self-Insurance Fund - Self-Insurance fund

Amounts of money required from the co-owners by the syndicate of co-owners to build up financial reserves (self-insurance fund) to be used in particular to pay the cost of the rehabilitation work of the building, resulting from a loss, which are not compensated by the insurer. This fund is based on the deductible that the syndicate of co-owners must pay in connection with the co-ownership's insurance coverage and a reasonable additional amount to cover other payments to which it is allocated. The Government has determined by regulation the terms and conditions under which the minimum contribution of co-owners to the self-insurance fund is established.

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At our last annual co-owner's meeting, the board of directors informed us that it was going to take $10,000 from our contingency fund to set up a self-insurance fund. To justify their decision, the directors said that this will allow to avoid putting up a special assessment. Several co-owners seemed to agree. Question: Can the board unilaterally decide to use part of the sums accumulated in the contingency fund to set up a self-insurance fund without consulting or obtaining the approval of the co-owners? And if so is this a good way to manage the funds of our co-ownership?
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The Self-Insurance Fund will become mandatory on April 15, 2022 following the adoption of the Bill 141, in 2018, which notably created section 1071.1 of the Civil Code of Québec. It had become necessary due to a substantial increase in insurance deductibles. Most of the time, the amount of these deductibles was formerly negligible, whereas today, it can reach tens, even hundreds of thousands of dollars. Several syndicates of co-owners did not wait, or will not wait until April 15, 2022, in order to constitute a Self-Insurance Fund, according to their management based on logic and pragmatism.  
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Le fonds de prévoyance est le "bas de laine" d'une copropriété. Il sera indispensable lorsque viendra le temps d'engager des travaux majeurs dans l'immeuble, ou qu'il faudra remplacer des parties communes arrivées à échéance.
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