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.
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.Continue
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?Try again
Case study: the trainee claims handler
Read the following case study and respond to the closing question.
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?
The Authorised Representative's action in leaving Sally alone in the office, without giving her instructions on what to do in the event of a customer call of this nature, was negligent. Sally had not received adequate training to perform this function and was not qualified to provide the advice she gave.
Marko relied on Sally's advice as to the adequacy of the insurance cover he was seeking. The advice was incorrect and John Saunders, as Sally's employer, is responsible for that incorrect advice.
This incident has placed the World's Best Insurance Company in breach of the Code. Insurers are responsible for the actions of their Authorised Representatives. They must ensure that their representatives receive the training they need to sell their insurance products. It would appear from this incident that the training of John Saunders was either inadequate or not adhered to.
As John Saunders is an Authorised Representative of World's Best Insurance Company, the insurer may also be liable for the consequences of Sally's actions (they may have to pay Marko's claim).