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Oh I think I get it now - the strata is bearing the cost of the policy excess? Sorry, that was the component I was missing; I'm with you now. I still think the strata is probably obligated to pass on claims, then it's up to the insurer to determine if it's a valid claim or not. If the insurer...

Don't the funds come from the insurer, not from the strata's sinking fund? Or is the strata paying them?

Surely the occupiers claim directly to the insurer. And I seriously doubt any insurers pay without evidence. I'm not understanding why you care, or what skin it is off your nose.