DOC

Unit Std 7336 - WELCOME TO BANKSETA

By Heather White,2014-05-18 21:24
8 views 0
Unit Std 7336 - WELCOME TO BANKSETA

    Learner Study Guide

Arrange and cancel insurance for

    bank-financed vehicles

(Unit standard No 7336)

    NAME:

ORGANISATION:

COURSE NO:

    OR

    RPL:

    7336 Learner Study Guide 2010/05/18 Page 1 of 16

    Table of Contents

     Page

    Introduction

     3 Specific Outcome 1

     7 Specific Outcome 2

     9 Specific Outcome 3

     13 Specific Outcome 4

7336 Learner Study Guide 2010/05/18 Page 2 of 16

Introduction

Welcome Welcome to this learning intervention, which is aligned to unit

    standard 7336 that deals with the arranging and cancelling of

    insurance for bank-financed vehicles.

    This learning intervention can form part of a Level 4 Skills

    Programme, which will enable you to meet the minimum

    requirements of Column Four (Conditions/Restrictions) of the

    Determination of Fit and Proper Requirements for Financial

    Services Provider (2002), in order to be “fit and proper” in

    terms of the Financial Advisory and Intermediary Services Act

    37 of 2002.

Purpose of this This learning intervention will provide you with the knowledge

    learning and skills required to:

    intervention

    ? Arrange comprehensive Motor cover.

    ? Arrange motor top up cover.

    ? Arrange personal catastrophe cover.

    ? Cancel insurance cover.

    Please note that Top Up Cover is dealt with in a generic

    manner, even though it may not be applicable to your

    organisation and you are required to have an understanding

    of the content in order to complete the assessment.

Learner’s roles You are required to:

    and

    responsibilities ? Work through this self-study guide.

    ? Take responsibility for your own learning.

    ? Ask for guidance and support when required.

7336 Learner Study Guide 2010/05/18 Page 3 of 16

    Unit standard The overall outcomes and specific outcomes of this learning

    intervention are aligned with registered Unit Standard 7336.

    This means that if you are able to demonstrate competence in

    the learning outcomes, which are aligned to the specific

    outcomes of the unit standard, you will qualify for credits,

    which will contribute towards the 120 credits required for a

    national certificate at Level 4.

    For further details regarding the process for obtaining the

    National Certificate at Level 4, please contact your Human

    Resources Department or the Skills Development Facilitator

    within your organisation.

    Assessment In order to obtain the eight credits for unit standard 7336, you

    are required to work through this self-study guide and provide

    evidence of your competence against the unit standard. If you

    are unable to demonstrate competence, you will not obtain any

    credits for the unit standard.

    The assessment can be conducted at your workplace. A

    qualified assessor or your line manager will conduct the

    assessment and will provide you with the necessary information

    about how the assessment will be conducted.

    Enjoy Now you may begin with the actual content of this learning

    material. Everything of the best in your studies.

    7336 Learner Study Guide 2010/05/18 Page 4 of 16

1. Specific Outcome 1: Arrange comprehensive cover

Assessment All vehicle related details are obtained for the insurance

    criteria 1.1 company as per their agreement.

     When quoting or providing comprehensive cover for a motor

     vehicle the underwriter from the insurance company needs to

    Vehicle gather sufficient information about the car, you the client and

    related the cars situation so that they are able to assess the risk

    details attached to this vehicle. The premium will be based on this

     assessment of risk.

    The Insurer may require all or most details about the vehicle

    and such details could include:

    ? The make is it a Toyota or BMW?

    ? The model station wagon, sedan, coupe or cabriolet

    ? The year of manufacture the year and the make and

    model are used to value the car.

    ? Retail value and or market value of the vehicle this

    requirement is specific to the underwriter

    ? Value of improvements and accessories

    ? Car registration number

    ? Chassis number or VIN

    ? Engine number

    ? Registered Owner (insurers will need detail, as below,

    of the regular driver of the vehicle to prepare the

    quotation accurately):

    o ID number

    o Residential Address

    o Occupation of driver

    o History of claims

    o Drivers license

    o Who else will be driving the vehicle

    o Proof of ownership sale agreement and

    finance agreement.

    ? What is the car used for business, professional,

    personal/private or taxi use? again this will affect

    the risks attached to this vehicle.

    ? Accessories in the car these may or may not be

    covered under the standard policy (dependant on the

    specific policy) and might have to be insured under an

    all risk policy or some policy wordings may require that

    these items be specified:

    o Radio Tape CD in car or in boot

    o Car phone

    o Tools

7336 Learner Study Guide 2010/05/18 Page 5 of 16

    Vehicle ? Security of the vehicle, namely (this can result in related lower or higher premiums):

    details cont. o VESA approved gear lock

     o Satellite Tracking device the discount for this

     will often offset the cost of the device and

     subscriptions

     o VESA approved Car Alarm or Imobiliser

     o Where is the car kept at night locked garage,

     in enclosed premises, in yard or in the street

     naturally the more secure the better the

     premium

     o Guarded suburb

     o Geographic location certain areas will be more

     expensive than others due to levels of crime

     while some areas may not be insurable

     To prepare an accurate quotation all information must be

     supplied at quotation stage. While all this information may

     not be required to get a quote it will be necessary if the client

     decides to take the cover.

     The insurance company will also require copies of certain

    Document documents to prove the information stated above is correct

    requirements and that regulations and requirements of FICA are met. This

    could include but may not be limited to:

    ? Copy of Identity Document

    ? Copy of drivers license

    ? Copy of utility bill Municipal, Telephone or income

    Tax to prove residential address

    ? Copy of Sale Agreement and Finance Agreement

    ? Proof of bank details for debit order cancelled cheque

    ? Copy of previous insurance policy - optional

7336 Learner Study Guide 2010/05/18 Page 6 of 16

Assessment The premium quote is obtained and communicated to

    criteria 1.2 the customer in accordance with company specific

     requirements.

    Premium The quote can be prepared on one of the computerized Quote systems or will be calculated by the insurance company. It is

     important to remember that both methods will result in a

     quotation that is based on the information provided to the

     company or system.

     If you do not include a required type of cover or protection

     this will reduce the quotation (costs that the client has to

     pay), however, this cover or protection will then not be

     included in the policy that the client takes out. In insurance it

     is generally considered that you get what you pay for, so if

     you don’t include it, the client doesn’t pay for it and ultimately

     doesn’t have this cover or protection.

     A cheaper quote may be cheaper as a result of an important

     type of cover that provides for required protection has been

     excluded.

     Once you have the quote you would need to communicate the

     amount of the premium as well as the cover the client has Communi-purchased for that premium to the client. Remember this cating the explanation must be in simple language so as to avoid premium financial or insurance jargon that the client may get confused

    quote or unsure of.

    It is your responsibility to ensure that:

    1. You understand what the clients situation and needs

    are, and to include solutions to these needs or

    concerns in the quote.

    2. The client understands what the benefits, conditions

    and exclusions are of the policy/product they are

    buying.

    3. The client understands how these policies/products

    work and what they need to do when claiming.

    4. Enable the client to make an informed decision about

    their insurance needs.

    5. You implement the policy/product they need, can

    afford and have agreed to.

7336 Learner Study Guide 2010/05/18 Page 7 of 16

Assessment Cover is arranged and the necessary entries generated

    criteria 1.3 in accordance with company specific requirements on

     receipts of the customers instruction.

Arranging Cover is arranged by completing the required application

    cover forms and providing the company with documentary proof

     of certain information in the application. This information is

     required for underwriting information as well as for

     regulatory requirements.

    Documentation These could include the following documents:

     ? Valuation certificates for jewellery

     ? Serial numbers of electronic equipment

     ? Proof of ownership invoices etc

     ? Copy of ID document

     ? Copy of drivers license

     ? Copy of vehicle registration certificate

     ? Copy of immobilizer certificate

     ? Copy of vesa level 4 alarm system certificate

     ? Copy of gear lock certificate

     ? Copy of satellite tracking system vehicles over a

     specified limit, e.g. R150 000 (Note: Not all insurers

     require a tracking system for vehicles over R150

     000. Remember that you would need to confirm this

     with regards to the specific policy/product you are

     dealing with).

    This would also contain the voluntary excess and the

    compulsory excess. Some people will increase the

    voluntary excess to reduce the premiums.

REMEMBER: The sum being insured is dependant on the underwriter

    whose product is being sold and you should investigate the

    specific requirements of that policy/product when arranging

    cover or protection and preparing the documentation.

    Certain underwriters may also require a "tracking device"

    and, as per the specific requirements, you would need to

    ascertain what the specific underwriters' requirements are.

7336 Learner Study Guide 2010/05/18 Page 8 of 16

    2. Specific Outcome 2: Arrange top up cover

Overview Since many people raise car finance for business purposes and

    therefore, interest expenses will be an allowable business

    deduction, they want to ensure that the interest payments are

    kept as high as possible for the entire term of the loan as this

    will result in a larger tax deduction. This results in many deals

    being structured with lower capital repayments during the life

    of the policy and there being balloon payments at the end of

    the term of the policy.

    As a result, if the car is written off or stolen the amount owing

    on the loan may be more than the value of the insurance

    which is based on the cars valuation. This can result in there

    being a short fall that the client must still pay to the finance

    company.

    The insurance companies have developed various top up plans

    to insure this short fall and this amount is then paid out on the

    complete loss of the vehicle and there being a shortfall.

Assessment Details of the value of the vehicle and use is obtained

    Criteria 2.1 from the customer in accordance with the insurance

    company’s requirements

    Criteria Range Use relates to business or personal, taxi.

    Details of the As the use of the motor vehicle will affect the following: value and use

    of the vehicle ? Only business use will usually result in this type of

     structured deal

     ? The reduction in value of the vehicle due to wear and

     tear.

     Naturally a taxi or company owned vehicle will be at more risk

     and subject to greater wear and tear.

7336 Learner Study Guide 2010/05/18 Page 9 of 16

Assessment The benefits of the cover are explained to the customer

    Criteria 2.2 in accordance with the product requirements.

    Benefits of The benefits of the cover are that the customer/client can the cover finance a vehicle to repay mainly the interest and very little

     capital as this may be a tax advantage to the client and be

    assured that there is sufficient cover to pay off this full

    amount in the event of the total loss of the asset due to an

    accident, theft or other event that falls within the policy/cover

    requirements in terms of claiming.

Assessment A quote is obtained and communicated to the customer

    Criteria 2.3 in accordance with company specific requirements.

    Obtaining a A quote would need to be obtained for an extra amount of quote cover and this must be communicated to the customer/client

     in writing and verbally. The adviser must also ensure that the

     customer/client understands the implications and risks of not

     having this cover and the costs and requirements of adding

     this cover to the plan.

Informed It is important that the client is placed in a position to make

    decision an informed decision in this matter.

7336 Learner Study Guide 2010/05/18 Page 10 of 16

Report this document

For any questions or suggestions please email
cust-service@docsford.com