Article 1071.1 requires the syndicate to establish a self-insurance fund, liquid and available at short notice, which is the property of the syndicate. The fund is allocated to paying the deductibles provided for by the insurance the syndicate takes out. It also serves to repair damage caused to property in which the syndicate has an insurable interest, where the contingency fund or an insurance indemnity cannot cover it.
This regime comes from Bill 141 (2018), in force since April 15, 2020, not from Bill 16: a frequent confusion.
The fund's amount is set based on those deductibles, plus a reasonable additional amount to cover the other payments it is allocated to.
The Code does not require a separate bank account: what it requires is that the fund be liquid and available at short notice. Holding the self-insurance fund apart from the operating account remains the recommended practice, and the normal way to evidence its allocation.
CondoAide tracks the self-insurance fund as a distinct fund, with its own contributions and balance.
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