Unit of competency Outline

Date retreived
22/07/2026 5:05 AM AWST

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Determine liability and negotiate settlements

Determine liability and negotiate settlements

Unit of competency
National Code
PSPIM501A
State Code
C8175
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
3.00
Current Release Date
01/11/2012
State Implementation and Classification
Approved Date
07/07/2014
Field of Education
081103 - Insurance And Actuarial Studies
Original Release Date
07/07/2014
Nominal Hours
50
Description
This unit covers determination of liability relating to injured workers and negotiations to settle future liabilities. It includes estimating liability, determining settlement options and negotiating settlements.In practice, determining liability and negotiating settlements may overlap with other generalist or specialist public sector work activities such as acting ethically, complying with legislation, delivering client services, managing resources, undertaking research and analysis.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of publication
Notes
Elements and Performance Criteria
1. Estimate liability
  • 1.1 Current information and guidelines on legislative changes and liability management are used to ensure up-to-date methods are used to estimate liability.
  • 1.2 All anticipated costs the employer believes may be incurred up to the time claims are resolved, are identified.
  • 1.3 Case estimate software facilities are used as required to create automated case estimates based on reporting data.
  • 1.4 Key indicators are used to estimate costs and manually amend automated estimates as necessary, based on local knowledge of particular claims.
  • 1.5 Estimates are reviewed at required intervals in accordance with legislation, organisational policy and procedures, and estimates of future liability are maintained on all open claims.
  • 1.6 Recovery rights against other parties or employers for the disabilities claimed are identified and pursued in accordance with government policy and legislation.
2. Determine settlement options
  • 2.1 Settlement options are identified that meet legislative obligations, organisational and government policy requirements.
  • 2.2 Options are assessed to determine the most cost effective course of action, given the nature and extent of each liability.
3. Negotiate settlements
  • 3.1 Injured workers are consulted to ensure they have competent professional and financial advice before entering into an agreement.
  • 3.2 Settlement terms are negotiated to meet obligations and minimise losses in accordance with risk management principles, organisational policy and procedures.
  • 3.3 Settlement terms are determined that represent substantial savings on costs that would otherwise have been incurred for future liability.
  • 3.4 Settlements are negotiated within financial delegations or referred in accordance with organisational policy and procedures.
  • 3.5 Discharge is obtained to ensure potential for further liability is eliminated.
  • 3.6 Where settlements cannot be agreed they are referred for conciliation and arbitration in accordance with legislation, policy and procedures.
The Range Statement provides information about the context in which the unit of competency is carried out. The variables cater for differences between States and Territories and the Commonwealth, and between organisations and workplaces. They allow for different work requirements, work practices and knowledge. The Range Statement also provides a focus for assessment. It relates to the unit as a whole. Text in bold italics in the Performance Criteria is explained here.
Key indicators may include:
nature of disability
other medical information
knowledge of total cost of previous claims for similar injuries/illnesses
worker characteristics (age, occupation, etc)
Settlement options may include:
lump sum payment
periodic payments
Legislation, policy and procedures may include:
claims management manual
workers rehabilitation/compensation legislation
allied legislation such as occupational health and safety acts, regulations and associated standards
privacy legislation
legislation and standards to ensure confidentiality and security of information
performance standards
rehabilitation and return to work manual
public sector legislation and standards
codes of conduct
codes of ethics
The Evidence Guide specifies the evidence required to demonstrate achievement in the unit of competency as a whole. It must be read in conjunction with the Unit descriptor, Performance Criteria, the Range Statement and the Assessment Guidelines for the Public Sector Training Package.
Units to be assessed together
Pre-requisite units that must be achieved prior to this unit:Nil
Co-requisite units that must be assessed with this unit:Nil
Co-assessed units that may be assessed with this unit to increase the efficiency and realism of the assessment process include, but are not limited to:
PSPETHC501B Promote the values and ethos of public service
PSPGOV502B Develop client services
PSPGOV503B Coordinate resource allocation and usage
PSPGOV504B Undertake research and analysis
PSPGOV505A Promote diversity
PSPLEGN501B Promote compliance with legislation in the public sector
Overview of evidence requirements
In addition to integrated demonstration of the elements and their related performance criteria, look for evidence that confirms:
the knowledge requirements of this unit
the skill requirements of this unit
application of the Employability Skills as they relate to this unit (see Employability Summaries in Qualifications Framework)
liability determined and settlements negotiated in a range of (3 or more) contexts (or occasions, over time)
Resources required to carry out assessment
These resources include:
legislation, policy, procedures and protocols relating to injury management
case studies and workplace scenarios to capture the range of situations likely to be encountered when determining liability and negotiating settlements
Where and how to assess evidence
Valid assessment of this unit requires:
a workplace environment or one that closely resembles normal work practice and replicates the range of conditions likely to be encountered when determining liability and negotiating settlements, including coping with difficulties, irregularities and breakdowns in routine
liability determined and settlements negotiated in a range of (3 or more) contexts (or occasions, over time)
Assessment methods should reflect workplace demands, such as literacy, and the needs of particular groups, such as:
people with disabilities
people from culturally and linguistically diverse backgrounds
Aboriginal and Torres Strait Islander people
women
young people
older people
people in rural and remote locations
Assessment methods suitable for valid and reliable assessment of this competency may include, but are not limited to, a combination of 2 or more of:
case studies
demonstration
observation
portfolios
questioning
scenarios
simulation or role plays
authenticated evidence from the workplace and/or training courses
For consistency of assessment
Evidence must be gathered over time in a range of contexts to ensure the person can achieve the unit outcome and apply the competency in different situations or environments
Replaced By
State Code National Code Title Type
AWU80 PSPINM011 Determine liability and negotiate settlements Unit of competency
State Code National Code Title Type
J308 PSP50912 Diploma of Government (Injury Management) Qualification