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

Demonstrate knowledge and understanding of insurable risk 
SAQA US ID UNIT STANDARD TITLE
14994  Demonstrate knowledge and understanding of insurable risk 
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 4  NQF Level 04  2 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Registered" 		 2003-10-08  2006-02-09  SAQA 0150/03 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2007-02-09   2010-02-09  

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
120124  Demonstrate knowledge of insurable risk  Level 4  NQF Level 04  3   

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, as well as intermediaries, insurance surveyors, wealth managers, underwriters, and learners in Short Term and Long Term insurance, who work in administration, call centres, claims support functions or who are involved in quotations.

The qualifying learner is capable of:
  • Explaining the concept of insurable risk.
  • Distinguishing between insurable and non-insurable risks.
  • Explaining the principle of average in relation to cover in short term insurance.
  • Applying categories and classes of insurance to categories of risk. 
    		•

    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 and Financial Literacy at NQF Level 3. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is
  • Fundamental risks that do not qualify for insurance include, but are not limited to, war, nuclear risk and natural disasters. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the concept of insurable risk. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The concept of pooling of risk is explained with reference to short term insurance, long term insurance and reinsurance. 

    ASSESSMENT CRITERION 2 
    2. The concept of insurable interest is explained and an indication is given of how this impacts on the law of contract. 

    ASSESSMENT CRITERION 3 
    3. The concept of particular risk is explained in terms of the effect on the individual. 

    ASSESSMENT CRITERION 4 
    4. The concept of pure risk is explained in terms of loss. 

    ASSESSMENT CRITERION 5 
    5. The difference between a hazard and a peril is explained with examples. 

    ASSESSMENT CRITERION 6 
    6. Ways in which moral and physical hazards impact on insurance policies are explained with examples. 

    SPECIFIC OUTCOME 2 
    Distinguish between insurable and non-insurable risks. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The concept of insurable risk is applied to financial loss. 

    ASSESSMENT CRITERION 2 
    2. Three case studies are analysed to determine whether there is insurable risk. 

    ASSESSMENT CRITERION 3 
    3. Three undesirable risks are named and an indication is given of the conditions under which each could be insurable and when each would be regarded as non-insurable. 

    ASSESSMENT CRITERION 4 
    4. Types of risks that will never be insured are named and suggestions are made for other ways to reduce such risks. 

    ASSESSMENT CRITERION 5 
    5. Fundamental risks that are non-insurable under standard insurance policies are identified and an explanation is offered as to why such risks do not qualify for insurance. 

    SPECIFIC OUTCOME 3 
    Explain the principle of average in relation to cover in short term insurance. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The difference between marine average and other cover is explained with examples. 

    ASSESSMENT CRITERION 2 
    2. The application of average in cases of under insurance is explained with examples. 

    ASSESSMENT CRITERION 3 
    3. The difference between indemnity and compensation is explained with examples. 

    SPECIFIC OUTCOME 4 
    Apply categories and classes of insurance to categories of risk. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The risks in a specific situation are analysed and classified in terms of insurable and non-insurable risk. 

    ASSESSMENT CRITERION 2 
    2. The insurable risks are categorised in terms of the most appropriate type or class of insurance for each risk. 

    ASSESSMENT CRITERION 3 
    3. A recommendation is made as to which risks should be insured and when and entity should self insure or carry the risk. 

    ASSESSMENT CRITERION 4 
    4. The consequences of self insuring and carrying the risk are explained with reference to five case studies. 


    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 INSQA or with an ETQA that has a Memorandum of Understanding with the INSQA
  • Moderators must be registered as assessors with INSQA, or with an ETQA that has a Memorandum of Agreement with INSQA.
  • Training providers must be accredited by the relevant ETQA.

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

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Learners are capable of identifying and solving problems in which responses show that responsible decisions using critical and creative thinking have been made in identifying the risks in a specific situation and recommending insurance, self insurance or carrying the risk. 

    UNIT STANDARD CCFO COLLECTING 
    Learners are capable of collecting, organising and critically evaluating information in analysing the risk in a specific situation. 

    UNIT STANDARD CCFO COMMUNICATING 
    Learners are capable of communicating effectively in explaining concepts, using case studies and recommending a course of action in a specific situation. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Learners are capable of seeing the world as a set of related systems in understanding the impact of moral and physical hazards on a policy, explaining why some risks are regarded as fundamental and explaining the consequences of self insurance and carrying the risk. 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by unit standard 120124, which is "Demonstrate knowledge of insurable 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
    Core  49649   Further Education and Training Certificate: Long-term Insurance  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  INSETA 
    Core  24396   National Certificate: Risk Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered"     		 2006-10-08  Was INSETA until Last Date for Achievement 
    Elective  49529   Further Education and Training Certificate: Long-Term Risk Assessment  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  INSETA 
    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.
     
    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.