Application
This unit describes the skills and knowledge required to provide ancillary services and guidance relating to a loss situation, and options to minimise the extent of future loss, damage or injury.
It applies to individuals in the loss adjusting sector who use specialised knowledge, analytical skills and strong communication skills to convey requirements and options. It may be applied within organisations of various sizes and across a range of customer bases.
Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Provide guidance on prevention of future losses | 1.1 Identify opportunities to provide guidance on loss prevention while current loss situations are being assessed 1.2 Interview clients and relevant third parties to identify potential risk and hazard indicators 1.3 Identify and assess all relevant risk information to determine integrity of its source, and whether it is comprehensive, valid, reliable and pertinent to nature of risk and meets client needs 1.4 Assess risk types against known exposure factors and for compliance with relevant legislation and client or organisational policy guidelines |
2. Provide guidance on application of risk management techniques where appropriate | 2.1 Determine client product, service types and environment so that nature of risk can be identified and appropriate techniques can be applied 2.2 Present range of viable risk management strategies and techniques, and benefits and disadvantages of various options, to clients 2.3 Carry out cost–benefit analysis on various options identified 2.4 Provide guidance based on objective assessment of client needs and risk exposure factors 2.5 Document guidance on risk management strategies and techniques provided to clients, and record promptly and accurately 2.6 Discuss appropriateness and adequacy of current insurance cover with clients |
Evidence of Performance
Evidence of the following must be provided:
apply risk management techniques to provide advice on loss reduction and loss prevention
use fraud detection, control and prevention principles to advise clients on preventative strategies for loss reduction
use arbitration and dispute resolution principles and processes, applying thorough knowledge of types and categories of insurance policies and products, industry codes of practice and relevant legislation
undertake cost–benefit analysis of a loss situation.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
Evidence of Knowledge
Evidence of the ability to:
explain the key features of:
claims management processes and procedures
relevant policy coverage and requirements
recovery processes
salvage and disposal methods
subrogation
type and categories of insurance policies
identify and describe the key features of:
insurance and contract law principles
relevant legislation and industry codes of practice
loss adjusting principles and practice
risk management and minimisation principles and techniques.
Assessment Conditions
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the insurance loss adjusting field of work and include access to:
organisational records
organisational policy, procedures, legislation and regulations as they relate to contracts of insurance
common office equipment, technology, software and consumables.
Assessors must satisfy NVR/AQTF assessor requirements.
Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.
Skill | Performance Criteria | Description |
Reading | 1.1, 1.3, 1.4, 2.1 | Critically analyses complex documentation from a variety of sources and consolidates information relating to specific criteria to determine requirements |
Writing | 2.2, 2.4, 2.5 | Presents carefully structured information using clear and accurate language to convey options and recommendations specific to the audience and purpose |
Oral Communication | 1.2, 2.2, 2.4, 2.6 | Participates in verbal exchanges, clearly presenting information and options using language, tone and pace appropriate to the audience and environment Uses listening and questioning techniques to elicit the views and opinions of other and to confirm understanding |
Numeracy | 2.3 | Performs calculations and uses mathematical problem-solving techniques to analyse numerical and financial data |
Navigate the world of work | 1.4 | Takes full responsibility for following policies, procedures and legislative requirements, and identifies the organisational implications of new legislation or regulation Identifies and resolves key business issues, processes and practices that may have legal implications |
Interact with others | 1.2, 2.2, 2.4, 2.6 | Implements strategies for a diverse range of colleagues and clients to build rapport and foster strong relationships Recognises the diversity in people and manages this diversity to improve relations and practices |
Get the work done | 1.1, 1.3, 2.1, 2.2, 2.3, 2.5 | Accepts responsibility for planning and sequencing complex tasks and workload, negotiating key aspects with others and taking into account capabilities, efficiencies and effectiveness Applies systematic and analytical decision-making processes for complex and non-routine situations Uses the main features and functions of digital tools to complete work tasks and access information |
Sectors
Insurance loss adjusting