"The nominal monthly premium, which is raised on the consolidated bill and forwarded to a private insurance company, covers part of the cost of additional water used as a result of the leak."
Looks like a third party inurance and council is only collecting the premium. Which leads to the question whether the owners/body corporates building insurance might have such water los cover on that policy already.
That would imply that it had been repaired before and was still under warranty. Otherwise one cannot make the new plumber responsible for the old plumbers or original developers f-up.
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