Unit of competency Outline
Date retreived
23/07/2026 3:35 PM AWST
23/07/2026 3:35 PM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Implement claim recovery procedures
Implement claim recovery procedures
Unit of competency
National Code
FNSISV507A
FNSISV507A
State Code
D4245
D4245
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
29/07/2014
Field of Education
081103 - Insurance And Actuarial Studies
Original Release Date
29/07/2014
Nominal Hours
50
Description
This unit describes the performance outcomes, skills and knowledge required to recover money relating to a claim. It encompasses the complete process from initiating the recovery to finalisation of the claim.This unit is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements including legislation administered by the Australian Securities and Investments Commission (ASIC).
Notes
Elements and Performance Criteria
1. Establish viability of recovery
- 1.1. Sources and rights of recovery are identified
- 1.2. Accurate calculation of achievable recovery amounts is made
- 1.3. Extent of recovery success is evaluated
2. Evaluate recovery methods
- 2.1. The benefit to the organisation of using each of the available recovery methods is determined following organisation operating procedures
- 2.2. Methods are assessed for compliance with relevant legislative and organisation policy requirements
- 2.3. Recovery action decided upon is appropriate to circumstances of loss
- 2.4. Recovery of correct amount from reinsurers is instigated where appropriate
- 2.5. Where necessary loss recovery agents are appointed to undertake loss recovery
3. Implement and monitor recovery progress
- 3.1. Demand is issued to responsible party
- 3.2. Knock for knock is confirmed, if applicable
- 3.3. Diary system is utilised to monitor follow-up
- 3.4. Referral is made to solicitor or other relevant service provider, if applicable
- 3.5. Recovery is implemented and followed up within specified timeframes and organisation guidelines
4. Negotiate recovery settlement
- 4.1. Recovery settlement is negotiated on best terms according to organisation policy
- 4.2. Negotiation is completed within timeframes and organisation procedures
5. Process monies
- 5.1. File is checked to determine whether recovery money has been received
- 5.2. Payment information is preparation and entered on the system to facilitate payment of claim by finance department, where applicable
- 5.3. Where applicable, client's share of recovery money is paid promptly
- 5.4. Claims are finalised according to legislation, regulations, organisation operating procedures and codes of practice, if applicable
6. Record outcome
- 6.1. All relevant records and files are promptly updated to display recovery action, amounts, and so on
- 6.2. Underwriter is advised of any special circumstances, if applicable
RANGE STATEMENT
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Sources of recovery may include:
goods sale
liable parties
other insurers
reinsurers
salvage and disposal.
Recovery methods may include:
direct
solicitors
third party agents.
Service providers may include:
mercantile agents
solicitors.
Negotiation/viability may include:
compromised settlement
contributory negligence.
Best terms basis refers to:
the best possible terms in the circumstances, including factors such as time, money and brand image.
Legislation may include:
Carriage of Goods Acts
Credit Acts
Insurance (Agents and Brokers) Act
international conventions
law of liability and negligence
Privacy Act
small claims procedures
Trade Practices Act.
Records include:
claims files
relevant client files.
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Sources of recovery may include:
goods sale
liable parties
other insurers
reinsurers
salvage and disposal.
Recovery methods may include:
direct
solicitors
third party agents.
Service providers may include:
mercantile agents
solicitors.
Negotiation/viability may include:
compromised settlement
contributory negligence.
Best terms basis refers to:
the best possible terms in the circumstances, including factors such as time, money and brand image.
Legislation may include:
Carriage of Goods Acts
Credit Acts
Insurance (Agents and Brokers) Act
international conventions
law of liability and negligence
Privacy Act
small claims procedures
Trade Practices Act.
Records include:
claims files
relevant client files.
EVIDENCE GUIDE
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
apply a strategic overview of the organisation objectives and industry obligations
implement an effective recovery process.
Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables
access to organisation records
access to organisation policies and procedures.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
evaluating an integrated activity, which combines the elements of competency for the unit, or a cluster of related units of competency
observing processes and procedures in workplaces
verbal or written questioning on underpinning knowledge and skills
evaluating samples of work
accessing and validating third party reports
setting and reviewing workplace projects and business simulations or scenarios.
Guidance information for assessment
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
apply a strategic overview of the organisation objectives and industry obligations
implement an effective recovery process.
Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables
access to organisation records
access to organisation policies and procedures.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
evaluating an integrated activity, which combines the elements of competency for the unit, or a cluster of related units of competency
observing processes and procedures in workplaces
verbal or written questioning on underpinning knowledge and skills
evaluating samples of work
accessing and validating third party reports
setting and reviewing workplace projects and business simulations or scenarios.
Guidance information for assessment
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUS18 | FNSISV507 | Implement claim recovery procedures | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| S727 | FNS51110 | Diploma of General Insurance | Qualification |