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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Apply technical knowledge and understanding of fidelity insurance as a means of managing people related financial risk 
SAQA US ID UNIT STANDARD TITLE
120114  Apply technical knowledge and understanding of fidelity insurance as a means of managing people related financial risk 
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 4  NQF Level 04 
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 replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
14987  Explain fidelity insurance as a means of managing people related financial risk  Level 4  NQF Level 04  Complete 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for learners who manage asset risk in insurance and other organisations. It will be useful for risk management generalists and managers of small businesses.

The qualifying learner is capable of:
  • Explaining why a business may need a fidelity insurance policy.
  • Explaining the circumstances that could result in a fidelity related loss.
  • Evaluating the potential risk in a proposal.
  • Interpreting a standard fidelity insurance policy. 

  • 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 3. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is:
  • Circumstances covered by a policy include a criminal charge being laid, but excludes instances where the person committing the fraud is not enriched personally.
  • Fidelity cover includes named person, named position and number of employees.
  • Fidelity insurance refers to pecuniary loss suffered by the organisation caused by an insured person as a result of improper financial gain for that person.
  • It includes collusion, stock and money.
  • Circumstances that could indicate fraud include, but are not limited to, resignation of an employee and annual leave. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain why a business may need a fidelity insurance policy. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The concept of fidelity insurance is explained with examples. 

    ASSESSMENT CRITERION 2 
    The financial advantages of having fidelity insurance are explained with reference to an entity's bottom line. 

    ASSESSMENT CRITERION 3 
    The need for fidelity insurance and the value of indemnity is explained with reference to good corporate governance. 

    ASSESSMENT CRITERION 4 
    Reasons why an insurance market may refuse to underwrite fidelity risk are explained and an indication is given of the implications on corporate institutions and the economy. 

    SPECIFIC OUTCOME 2 
    Explain the circumstances that could result in fidelity related loss. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Personal circumstances as a means of detecting potential employee dishonesty are explained and an indication is given of why personal circumstances can be a useful indicator. 

    ASSESSMENT CRITERION 2 
    Circumstances that could possibly indicate that fraud has occurred are identified with examples. 

    ASSESSMENT CRITERION 3 
    The concept of fraud is explained in terms of improper financial gain. 

    ASSESSMENT CRITERION 4 
    Extent of indemnity is explained with reference to circumstances in an entity that could impact on levels of indemnity required by an organisation. 

    SPECIFIC OUTCOME 3 
    Evaluate the potential risk in a proposal for fidelity insurance. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    A fidelity proposal is analysed to determine the potential circumstances that could result in a claim. 

    ASSESSMENT CRITERION 2 
    Potential risks that can be inferred from responses to questions in a fidelity proposal document are identified and an indication is given of the consequences of each potential risk. 

    ASSESSMENT CRITERION 3 
    Claims against a fidelity insurance policy are analysed and the circumstances of each are related back to the original proposal in order to identify possible malicious intent and improper financial gain. 

    SPECIFIC OUTCOME 4 
    Interpret a standard fidelity insurance policy. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The terms and conditions of a standard fidelity insurance policy are interpreted in terms of period of insurance with reference to retroactive date and superceded cover. 

    ASSESSMENT CRITERION 2 
    Defined events in a standard fidelity insurance policy are interpreted and explained with reference to the persons and circumstances covered by the policy. 

    ASSESSMENT CRITERION 3 
    The concept of an employee is explained with reference to a fidelity insurance policy. 

    ASSESSMENT CRITERION 4 
    Exclusions in a fidelity insurance policy are identified and an indication is given of the people and circumstances that would not be covered in the insured entity. 

    ASSESSMENT CRITERION 5 
    Conditions that are exclusive to a fidelity insurance policy are identified and an indication is given of why the conditions apply. 

    ASSESSMENT CRITERION 6 
    Additional cover provided in a specific fidelity insurance policy is identified with reference to additional terms and conditions and clauses and warranties. 


    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 
    Learners are able to identify and solve problems in which responses show that responsible decisions using critical and creative thinking have been made in evaluating the potential risk in a proposal for fidelity insurance. 

    UNIT STANDARD CCFO COLLECTING 
    Learners are able to collect, organise and critically evaluate information in interpreting a fidelity insurance policy and in analysing the circumstances of claims and relating the circumstances back to the original proposal. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Learners are able to understand the world as a set of related systems by explaining relationships between personal circumstances and annual leave as indicators of potential employee dishonesty. 

    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 
    This unit standard replaces unit standard 14987, "Explain fidelity insurance as a means of managing people related financial risk", Level 4, 3 credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  66610   Further Education and Training Certificate: Short Term Insurance  Level 4  NQF Level 04  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 
    Elective  57613   Further Education and Training Certificate: Short-Term Risk Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered" 
    2012-06-30  INSETA 
    Elective  66613   Further Education and Training Certificate: Wealth Management  Level 4  NQF Level 04  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. Alcari Learning Centre (Pty) Ltd 
    3. CKP Development Agency (Pty) Ltd. 
    4. De Vries Management & Training Services cc 
    5. EJW Financial Services (Pty) Ltd 
    6. Faisit (Pty) Ltd 
    7. Intelligo Solutions Pty (Ltd) 
    8. Invuya Institute of Learning (Pty) Ltd 
    9. License to Skill cc 
    10. Masifunde Training Centre (Pty) Ltd 
    11. Octomate (Pty) Ltd 
    12. Outsurance Insurance Company Ltd 
    13. Ray Strodl Consulting (Pty) Ltd 
    14. Ripple Effect 4 (Pty) Ltd 
    15. RJM Educational Consulting (Pty) Ltd 
    16. Sanlam Life Insurance 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.