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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
117134  Indicate the scope of short term insurance in South Africa 
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 3  NQF Level 03  3 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Reregistered" 		 2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2026-06-30   2029-06-30  

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
8997  Indicate the scope of short term insurance in South Africa  Level 3  NQF Level 03  3   

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 and learners in credit guarantee. The qualifying learner is capable of:
  • Explaining the role of short term insurance in financial services.
  • Indicating the role of intermediaries in the sector.
  • Explaining what short term insurers do with policyholders' money.
  • Describing the role of the short term ombudsman.
  • Explaining short term insurance contracts. 
    		•

    LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that the Learner is competent in:
  • Mathematical Literacy at NQF Level 2.
  • Communication at NQF Level 2. 
    		•

    UNIT STANDARD RANGE 
    The typical scope of this unit standard is, classes of business:
  • Insurance classes include, but are not limited to, fire, motor, all risks, building, household contents, personal liability, public liability, personal accident, theft.
  • Specialist categories include, but are not limited to, transportation, aviation, engineering, Interruption and professional Indemnity.
  • Players include, but are not limited to, buyers, sellers, intermediaries, insurers, reinsurers, assessors, loss adjusters and risk managers. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the role of short term insurance in financial services. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Reasons why some insurance is classified as short term are explained with examples 

    ASSESSMENT CRITERION 2 
    The players in the short term insurance market are identified and an indication is given of the role played by each. 

    ASSESSMENT CRITERION 3 
    Products marketed as short term insurance are researched and two similar products are compared in terms of cover and price. 

    ASSESSMENT CRITERION 4 
    Reasons why certain public bodies and industrial concerns choose to self-insure are explained with reference to the management of risk in an organisation. 

    ASSESSMENT CRITERION 5 
    The impact of FAIS and FICA on the insurer is explained with examples. 

    SPECIFIC OUTCOME 2 
    Indicate the role of intermediaries in the sector. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    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 2 
    The functions of an intermediary are compared to that of an intermediary in long term insurance. 

    ASSESSMENT CRITERION 3 
    Ways in which technology and the Internet could change the relationship between insurers, intermediaries and clients are explained with examples. 

    ASSESSMENT CRITERION 4 
    The relationship between the insurer and the intermediary is described with reference to FAIS. 

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

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The effects of inflation on a short term policy are explained with reference to similar policies over a decade. 

    ASSESSMENT CRITERION 2 
    A premium pie is used to illustrate graphically the apportionment of the premium Rand. 

    ASSESSMENT CRITERION 3 
    Different avenues of investment prescribed by law are named and compared from a insurer's perspective. 

    ASSESSMENT CRITERION 4 
    The concept of a solvency margin in short term insurance is explained in terms of legislation. 

    ASSESSMENT CRITERION 5 
    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 6 
    Treaty reinsurance and facultative reinsurance in short term insurance are explained and compared with examples. 

    ASSESSMENT CRITERION 7 
    The effects of a particular event on a short term insurance organisation are compared for a scenario with or without reinsurance. 

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

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The functions of the short term ombudsman are outlined and an indication is given of ways in which the ombudsman can interact with insurance companies on behalf of the customer. 

    ASSESSMENT CRITERION 2 
    The advantages to the industry of supporting an ombudsman are listed and compared to a situation where there is no ombudsman. 

    ASSESSMENT CRITERION 3 
    The contracts between the industry and the ombudsman are explained with reference to a particular complaint. 

    SPECIFIC OUTCOME 5 
    Explain short term insurance contracts. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The concept of a contract is explained with reference to contracts used in short term insurance. 

    ASSESSMENT CRITERION 2 
    The difference between insurance contracts and all other contracts is explained with reference to an insurance contract and another contract. 

    ASSESSMENT CRITERION 3 
    The importance of accuracy in recording and maintaining records is explained from the point of view of the organisation. 

    ASSESSMENT CRITERION 4 
    The difference between annual, monthly and short period policies is explained with reference to examples of each. 

    ASSESSMENT CRITERION 5 
    The process to be followed by a policyholder who wishes to change a policy are explained and an indication is given of the kind of changes that should be made annually. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    Accreditation for this Unit Standard shall be obtained from the relevant Education and Training Quality Assurance Body, through summative and formative assessment by a registered assessor.
  • Assessors must be registered as an Assessor with the relevant ETQA, or with an ETQA that has a Memorandum of Agreement with the relevant ETQA.
  • Moderators must be registered as assessors with the relevant ETQA, or with an ETQA that has a Memorandum of Agreement with the relevant ETQA.
  • Training providers must be accredited by the relevant ETQA or with an ETQA that has a Memorandum of Agreement with the relevant ETQA.

    Moderation should include both internal and external moderation where applicable. 
    		•

    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 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 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 changes in technology and the Internet can change relationships in the industry. 

    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 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 has replaced 8997 which was "Indicate the scope of short term insurance in South Africa", Level 3 with 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  66609   Further Education and Training Certificate: Retail Insurance  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  As per Learning Programmes recorded against this Qual 
    Elective  49089   National Certificate: Financial Services  Level 3  NQF Level 03  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  INSETA 


    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.
     
    NONE 


    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.