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  • Reflection

    Before beginning this section, reflect on a few of the reasons why you think ongoing training is critical when providing a service to your customers.


    Training of employees and Authorised Representatives is also a requirement under Volume 4, Chapter 7 of the Corporations Act.

    The Australian and Securities Investment Commission (ASIC) has also issued guidelines on the training of representatives under its RG 146 compliance requirements.


  • Scenario

    Select Start to begin.

    Start

    “Hi there, I'm not sure if you can help me but I'm calling to renew my policy. A few things have changed since last year…”

    Colin fills you in on a few situational changes which will affect his premium and require specialised underwriting.

    You don't usually deal with these sorts of queries but your manager has often commented that you are ready to move into the specialist team.

    You're also conscious of the fact that you have yet to receive training on the General Insurance Code of Practice.

    Refer to sections 5 and 6 of the Code regarding standards for our employees, authorised representatives and suppliers.

    How would you respond to Colin's request to change some of his details?

    Although, the customer is slightly annoyed at having to go into another queue, you've done the right thing according to Section 5.1 in the Code, which states:

    When our Employees or Authorised Representatives are acting on our behalf, we will:

    (a) provide them with… appropriate education and training…including training on this Code

    (b) …only allow our Employees and our Authorised Representatives to provide services that match their expertise

    Months later, you receive a letter from the Code Governance Council (CGC) enquiring as to why you were providing services that did not match your expertise.

    They're also curious about why you have not taken any training on the Code despite being a member.

    If you had to go back in time, what would you have done differently?


  • Case study: the trainee claims handler

    Read the following case study and respond to the closing question.

    Start

    John Saunders is an Authorised Representative for World's Best Insurance Company. He runs his business from a small office and has one employee, a receptionist/assistant Sally. Sally is new to the workforce and started her job in John's office two weeks ago.

    Marko Williams telephones the John Saunders Insurance Agency and speaks to Sally. He tells her he wishes to arrange for fire, burglary and public liability insurance for his panel beating and motor repair business.

    John Saunders is absent at the time of this call and Sally asks John a range of questions about his business operations and his past claims experience (using a pre-prepared script that she has seen in the office).

    When Marko questions Sally about the cover offered under the policies he is seeking, she is able to provide only partial answers to some of his questions. She tells Marko that she does not know the rest of the information, as she has only been working in insurance for two weeks.

    She assures Marko that the policy cover she is arranging will be more than adequate for his panel beating business. On that basis, Marko goes ahead with the insurance and Sally types up a cover note until the application for the insurance can be completed.

    A week later, Marko has an incident in his workshop and rings John Saunders to make a claim. After explaining the circumstances to John, Marko is told that he is not covered for this incident, even though he had specifically mentioned to Sally that he wanted this particular type of cover and Sally had indicated she thought everything would be fine.

    Marko reluctantly accepts Johns advice. However, after thinking about it for a while he calls John Saunders again to complain about how the matter had been handled.

  • Refer to Section 5 of the Code.

    How has World's Best Insurance Company breached its Code obligations and responsibilities for the training of employees?