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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Demonstrate knowledge and understanding of the financial consequences of a large claim to a client 
SAQA US ID UNIT STANDARD TITLE
242615  Demonstrate knowledge and understanding of the financial consequences of a large claim to a client 
ORIGINATOR
SGB Insurance and Investment 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 5  Level TBA: Pre-2009 was L5 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for learners who assess and/or advise clients on the adequacy of Short Term insurance cover. It will be useful for Intermediaries, Assessors, Surveyors, Insurance Officials, Claims Administrators, Technical Claims Negotiators and Short Term Underwriters and Reinsurers.

The qualifying learner is capable of:
  • Analysing the adequacy of cover in the event of a large claim.
  • Analysing the financial consequences of an event for a specific client.
  • Applying knowledge of an event to assist a client to resume operations.
  • Applying knowledge of business management to determine additional uninsurable costs in the event of a large claim. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in Communication and Mathematical Literacy at Level 4. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is:
  • Adequacy includes, but is not limited to, underinsurance, self insurance, no insurance, incorrect advice and indemnity.
  • Time related events include, but are not limited to, deployment of employees, production, clean up, municipal and architectural constraints, rebuilding, re-equipping, dependence on a supplier, loss of custom and competitors.
  • A disaster recovery plan should include analysis of bank overdraft, additional cost of working, re-budgeting, re-planning, reworking to resume turnover as soon as possible, temporary accommodation and resumption of business.
  • Cover includes sum insured and perils insured. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Analyse the adequacy of cover in the event of a large claim. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The importance of cover is explained with reference to adequacy in the event of a claim. 

    ASSESSMENT CRITERION 2 
    The consequences of partial or total loss are compared for a specific client. 

    ASSESSMENT CRITERION 3 
    An evaluator and/or assessor report is interpreted to determine the adequacy of cover after an event. 

    SPECIFIC OUTCOME 2 
    Analyse the financial consequences of an event for a specific client. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Time related aspects after an event are evaluated with reference to reinstatement of business to the level prior to the loss. 

    ASSESSMENT CRITERION 2 
    The length of time required to return to normal turnover is estimated for a specific client with reference to the adequacy of the sum insured and real time. 

    ASSESSMENT CRITERION 3 
    The effect of a bad claims experience on risk premium is explained for different events. 

    SPECIFIC OUTCOME 3 
    Apply knowledge of an event to assist a client to resume operations. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    A disaster recovery plan is analysed to determine whether it is adequate to reduce the cost of a potential claim to a client. 

    ASSESSMENT CRITERION 2 
    A programme is developed to manage future risk to a specific client based on a specific event. 

    SPECIFIC OUTCOME 4 
    Apply knowledge of business management to determine additional uninsurable costs in the event of a large claim. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The consequences of non-compliance with the legislative and regulatory environment are explained with reference to legal requirements, fines and the relationship to an insurance claim. 

    ASSESSMENT CRITERION 2 
    The consequences of inability to service contractual business requirements are explained with examples. 

    ASSESSMENT CRITERION 3 
    The impact of an event on the value of an organisation is analysed for a specific client. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Anyone assessing a candidate against this Unit Standard must be registered as an assessor with the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this Unit Standard must be accredited as a provider through the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines and the agreed ETQA procedures. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    The learner is capable of identifying and solving problems in which responses show that responsible decisions using critical thinking have been made in developing a programme to manage future risk. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is capable of collecting, organising and critically evaluating information in analysing the financial consequences of an event to a specific client and analysing the impact of an event on the value of an organisation. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is capable of demonstrating an understanding of the world as a set of related systems in understanding the consequences of a claim to a client. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    Search words: claim, financial consequences. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  57918   National Certificate: Short Term Insurance  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  INSETA 
    Elective  61529   National Certificate: Loss Adjusting  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  INSETA 
    Elective  66611   National Certificate: Wealth Management  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. African Resources & Financial Training (Pty) Ltd 
    2. AFRICAN UNION SKILLS DEVELOPMENT PTY LTD 
    3. ALCARI 233 CC T/A ALCARI (Eversdal)(TP) 
    4. Boland Public FET College - Central Office 
    5. CKP Development Agency (Pty) Ltd. 
    6. COLLEGE OF CAPE TOWN 
    7. College of Cape Town - Central Office 
    8. False Bay College 
    9. Intec College 
    10. Invuya Institute of Learning (Pty) Ltd 
    11. Masifunde Training Centre (Pty) Ltd 
    12. North Link College 
    13. Old Mutual Life Assurance Company South Africa 
    14. Ray Strodl Consulting (Pty) Ltd 
    15. Ripple Effect 4 (Pty) Ltd 
    16. Sanlam Life Insurance Ltd 
    17. Sanlam Life Insurance Ltd. 
    18. South Cape College 
    19. South Cape Public FET College - Central Office 
    20. The Institute of Health Risk Managers (Pty) Ltd 
    21. Umfolozi FET College - Central Office 
    22. Universal Healthcare Services (Pty) Ltd 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.