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Entry into force of the Self-Insurance Fund

Entry into force of the Self-Insurance Fund

As of April 15, 2022, each syndicate of co-ownership must have established a Self-Insurance Fund.

The self-insurance fund is according to article 1071.1 of the Civil Code of Quebec :
"1071.1. Le syndicat constitue un fonds d’auto assurance liquide et disponible à court terme. Ce fonds est la propriété du syndicat.
Le fonds d’auto assurance est affecté au paiement des franchises prévues par les assurances souscrites par le syndicat.
Il est également affecté à la réparation du préjudice occasionné aux biens dans lesquels le syndicat a un intérêt assurable, lorsque le fonds de prévoyance ou une indemnité d’assurance ne peuvent y pourvoir.
Le fonds d’auto assurance est établi en fonction de ces franchises et d’un montant additionnel raisonnable pour pourvoir aux autres paiements auxquels il est affecté."

The accounts of a syndicate of co-ownership must now contain 3 funds: the operating fund, the contingency fund and the self-insurance fund.

The amount to be paid is different according to each syndicate because the highest deductible of the syndicate's insurance policy must be paid.

And each year, the syndicate must check the height of this fund because if sums have been used, the syndicate will have to contribute to its annual budget the sums necessary to have the same amount as the deductible.

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Québec Landlords Association

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