FNSISV527
Implement insurance claim recovery procedures


Application

This unit describes the skills and knowledge required to recover money relating to an insurance claim. It encompasses the complete process, from initiating the recovery to finalisation of the claim.

The unit applies to those who work in job roles such as underwriting. It involves specialist knowledge and functions in a range of insurance sectors, and may be applied in organisations of various sizes and across a range of client bases.

Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Users are advised to check with the relevant state and territory regulatory authorities to confirm those 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. Establish viability of recovery

1.1 Identify sources and rights of recovery

1.2 Calculate achievable recovery amount

1.3 Evaluate extent of recovery success

2. Evaluate recovery methods

2.1 Determine recovery method based on assessing benefit to organisation and according to organisational operating procedures

2.2 Confirm that selected recovery method is appropriate to circumstances of loss and compliant with legislative and organisational requirements

3. Implement and monitor recovery progress and negotiate recovery

3.1 Issue demand to responsible party and appoint agents to undertake loss recovery, as required

3.2 Confirm knock for knock, as required

3.3 Make referral to solicitor and other relevant service provider, as required

3.4 Implement and follow up recovery within required timeframes and according to organisational procedures

3.5 Negotiate recovery settlement within required timeframes and according to organisational procedures

4. Process monies and record outcomes

4.1 Confirm receipt of recovery amounts

4.2 Prepare payment information and facilitation of claim payment, as required

4.3 Make recommendation to relevant team on payment of client’s share of recovery money, as required

4.4 Finalise claims according to legislation, regulations, organisational operating procedures and codes of practice, as required

4.5 Update required records and advise underwriter of any special circumstances, as required

Evidence of Performance

The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:

implement claim recovery procedures for at least three different insurance claims.

In the course of the above, the candidate must:

collate information and determine viability of the recovery

review options and determine a suitable claim recovery method

engage in negotiations to secure settlement conditions

calculate achievable recovery amounts

oversee financial transactions of payments

maintain accurate records.


Evidence of Knowledge

The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:

legislative requirements, regulatory guidelines and industry sector compliance requirements as they apply to:

insurance contracts

consumer protection

privacy

collection of monies

Corporations Act

General Insurance Code of Practice

organisational policies, procedures, insurance guidelines and key stakeholders in claim recovery processes

legal aspects of insurance agents and brokers that apply when implementing claim recovery procedures

key aspects of claim recovery methods and their application

techniques for negotiating recovery settlements

insurance fundamentals and methods to interpret and apply policy wording, including rights of subrogation

key aspects of procedures of claims recovery from reinsurance

legal precedents and previous organisational results for insurance claims recovery.


Assessment Conditions

Skills in this unit must be demonstrated in a workplace or simulated environment where the conditions are typical of those in a working environment in this industry.

This includes access to:

organisational records

organisational policies, procedures, legislation and regulations as they relate to contracts of insurance

common technology and software required to implement insurance claim recovery.

Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.


Foundation Skills

This section describes those language, literacy, numeracy and employment skills that are essential to performance but not explicit in the performance criteria.

SKILL

DESCRIPTION

Numeracy

Performs mathematical calculations to analyse financial information, costs and values, and to process claims

Oral communication

Participates in verbal exchanges, using active listening and questioning techniques to convey and clarify information and confirm understanding

Reading

Interprets, consolidates and checks completeness and accuracy of information and data

Writing

Records communications and data, and completes organisational documentation and correspondence using clear language and correct spelling, grammar and terminology

Planning and organising

Plans and sequences complex tasks and workload, negotiating key aspects with others and according to capabilities, efficiencies and effectiveness

Makes critical decisions in complex situations, considering a range of variables including outcomes of previous decisions

Self-management

Takes responsibility for following policies, procedures and legislative requirements

Teamwork

Selects and uses appropriate conventions and protocols when communicating with clients and colleagues in a range of contexts

Technologies

Uses digital technologies to access, enter and store information


Sectors

Insurance services