Sectional Title Insurance and NAMA

Aug 26 2015

NAMA (National Association of Managing Agents) is a professional body formed by the industry for the industry. In other words, it is an organisation with a purpose to look out for the interests of its managing agent members rather than being a statutory entity or public protector.

Over the relatively few years of its existence, NAMA has matured and become widely known as South Africa’s main representative body with regard to community schemes. From time to time, NAMA has representation and/or nominees on the Regulations Board which makes formal recommendations to the legislators in respect of Sectional Title. It has a national footprint and member managing agents participate in training, seminars and have access to the latest information. Expert affiliated members such as legal experts, maintenance specialists, insurance advisors, underwriters, etc. also participate.  It’s a meeting of minds that helps to shape the managing agent profession.

NAMA members also subscribe to a code of conduct and are encouraged to have a written contract in line with the model NAMA managing agent contract. There can thus be no doubt that a better informed and better educated managing agent, as well as one who subscribes to an industry standard, is a lower risk for an insurer. It follows that a body corporate or HOA under the management of such an agent would also be considered a lower risk overall.

This view is vindicated by the direct discount structures in premium models used by underwriting managers. PIMA (Professional indemnity for Managing Agents) and FIDCURE (Fidelity and Trustee Indemnity cover for bodies corporate) are underwritten in this way.

It is has always my experience that the better managing agents and their staff are the ones that attend seminars, training and workshops. When I am asked by trustees attending NAMA events to recommend a managing agent,   I simply suggest that they look around the room at the agents who are present.

NAMA requires that their managing agent members have the statutory EAAB (Estate Agents Affairs Board) FFC (Fidelity Fund Certificate).  This is quite a stringent requirement as there are some questions around the definition of a managing agent. However, from a consumer or body corporate‘s point of view, such a firm requirement is a good thing.

Addsure is a strong NAMA supporter and affiliate member. We support and participate in the NAMA events and training in all regions, and encourage other insurance advisors working with bodies corporate and HOAs to do same.

 

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

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