SAQA 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.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Indicate the scope of short term insurance in South Africa 
SAQA US ID UNIT STANDARD TITLE
8997  Indicate the scope of short term insurance in South Africa 
ORIGINATOR
SGB Financial Services 
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 3  NQF Level 03 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Registered" 
2001-10-10  2004-10-10  SAQA 0538/01 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2005-10-10   2008-10-10  

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 is replaced by: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
117134  Indicate the scope of short term insurance in South Africa  Level 3  NQF Level 03  Complete 

PURPOSE OF THE UNIT STANDARD 
This unit standard builds on the concepts introduced in the unit standard, Describe short-term insurance. It introduces some theoretical concepts and requires a wide range of knowledge and skills that will enable learners to be informed workers in the short-term insurance industry.

The qualifying learner is capable of:
  • Explaining short-term insurance and comparing the products classified as short-term.
  • Explaining what short-term insurers do with policyholders` money.
  • Describing the role of the short-term ombudsman. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    There is open access to this unit standard. Learners should be competent in Communication and Mathematical Literacy at NQF Level 2. Learners should:
  • Understand the concept of short-term insurance.
  • Know the types of short-term insurance and some of the products that a short-term insurance organisation markets.
  • Recognise events that impact on short-term insurance premiums. 

  • UNIT STANDARD RANGE 
    The typical scope of this unit standard is:

    Classes of business:
  • Fire or Interruption,
  • Engineering, Liability,
  • Motor,
  • Transit,
  • Marine,
  • Breakdown,
  • Personal Accident,
  • Professional Indemnity,
  • Aviation,
  • Crime Classes. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain short-term insurance. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Buyers, sellers and intermediaries are identified as the players in the short-term insurance market. 

    ASSESSMENT CRITERION 2 
    2. An explanation is given of what constitutes short-term insurance in financial services. 

    ASSESSMENT CRITERION 3 
    3. The different classes of short-term insurance are named and compared in terms of the different products marketed. 

    ASSESSMENT CRITERION 4 
    4. Reasons are given for taking out a short-term insurance policy for two different types of short-term insurance. 

    ASSESSMENT CRITERION 5 
    5. Reasons why certain public bodies and industrial concerns choose to self-insure are listed and case studies of situations where the bodies were insured or self insured are compared. 

    SPECIFIC OUTCOME 2 
    Indicate the kind of products marketed as short-term insurance 
    OUTCOME NOTES 
    Indicate the kind of products marketed as short-term insurance and the role of intermediaries in short-term insurance. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Products marketed as short-term insurance are researched and two similar products
    are compared in terms of cover and price. 

    ASSESSMENT CRITERION 2 
    2. Sources of new short-term insurance business are indicated with reasons why the sources could be interested in a short-term insurance policy 

    ASSESSMENT CRITERION 3 
    3. The functions of an intermediary are listed and compared to that of an intermediary in long term insurance. 

    ASSESSMENT CRITERION 4 
    4. The advantages and disadvantages to the customer of using or not using an intermediary are listed and an indication is given of how the intermediary adds value to the customer and how the Internet could change the relationship. 

    ASSESSMENT CRITERION 5 
    5. The relationship between the intermediary and an insurance organisation is described from the perspective of the short-term insurance industry. 

    ASSESSMENT CRITERION 6 
    6. The effects of inflation on a short-term policy are explained with reference to similar policies over a decade. 

    SPECIFIC OUTCOME 3 
    Explain what short-term insurers do with their policy holders' money. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. A premium pie is used to illustrate graphically the apportionment of the premium Rand. 

    ASSESSMENT CRITERION 2 
    2. Different avenues of investment prescribed by law are named and compared from a companies' perspective. 

    ASSESSMENT CRITERION 3 
    3. The concept of a solvency margin in short-term insurance is explained in terms of legislation. 

    ASSESSMENT CRITERION 4 
    4. The implications of an insufficient solvency margin for a company are explained and an indication is given of the options that a short-term insurance company has if it has a surplus of funds 

    ASSESSMENT CRITERION 5 
    5. Treaty reinsurance and facultative reinsurance in short-term insurance are explained and compared with examples of each. 

    SPECIFIC OUTCOME 4 
    Describe the role of the short-term ombudsman. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The functions of the short-term ombudsman are outlined and reasons are given to explain why the role exists. 

    ASSESSMENT CRITERION 2 
    2. Ways in which the ombudsman can interact with insurance companies on behalf of the customer are indicated and compared with the customers' options if there were no ombudsman. 

    ASSESSMENT CRITERION 3 
    3. The advantages to the industry of supporting an ombudsman are listed and compared to a situation where there is no ombudsman. 

    ASSESSMENT CRITERION 4 
    4. The contracts between the industry and the ombudsman are explained with reference to a particular complaint. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    This unit standard will be internally assessed by the provider and moderated by a moderator registered by INSQA or a relevant accredited ETQA. The mechanisms and requirements for moderation are contained in the document obtainable from INSQA, INSQA framework for assessment and moderation. 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Learners are able to develop entrepreneurial opportunities by identifying potential sources of short-term new business.

    Learners can identify and solve problems by listing reasons for self-insurance and comparing case studies where public and industrial bodies were insured or self-insured. 

    UNIT STANDARD CCFO COMMUNICATING 
    Learners are able to communicate effectively using visual, mathematics and language skills when providing reasons for effecting short-term insurance, when comparing different avenues of investment and when using a premium pie to graphically illustrate the appointment of the premium Rand. 

    UNIT STANDARD CCFO SCIENCE 
    Learners can understand the impact of technology by explaining how the Internet can change the intermediary-policyholder relationship. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Learners can demonstrate an understanding of the world as a set of related systems by recognising the effect of inflation on short-term policies. 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by 117134, which is 'Indicate the scope of short term insurance in South Africa', Level 3, 3 Credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  21796   National Certificate: Short Term Insurance  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2005-06-12  Was INSETA until Last Date for Achievement 
    Elective  48494   National Certificate: Financial Services Management  Level 3  NQF Level 03  Passed the End Date -
    Status was "Reregistered" 
    2012-06-30  INSETA 
    Elective  20177   National Certificate: Insurance  Level 3  NQF Level 03  Passed the End Date -
    Status was "Registered" 
    2004-10-10  Was INSETA until Last Date for Achievement 
    Elective  48493   National Certificate: Financial Services: Wealth Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2007-02-11  Was INSETA until Last Date for Achievement 


    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. Discovery Life Ltd 
    2. Faisit (Pty) Ltd 
    3. Intec College 
    4. Invuya Institute of Learning (Pty) Ltd 
    5. Umfolozi FET College - Central Office 



    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.