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Demonstrate knowledge of insurance for a road transport operation
Level
5
Credits
6
Purpose
This unit standard is for people in management positions in the road
transport industry. It is applicable to both goods and passenger services.
People credited with this unit standard are able, for a road transport
operation, to: demonstrate knowledge required for insurance decisions;
describe insurance cover; describe public liability insurance; and describe the
features of material fact that can affect insurance cover and compensation.
Subfield
Commercial Road Transport
Domain
Road Transport Management
Status
Registered
Status date
25 June 2007
Date version published
25 June 2007
Planned review date
31 December 2012
Entry information
Open.
Accreditation
Evaluation of documentation and visit by NZQA and
industry.
Standard setting body (SSB)
NZ Motor Industry Training Organisation (Incorporated)
Accreditation and Moderation Action Plan (AMAP) reference
0092
This AMAP can be accessed at http://www.nzqa.govt.nz/framework/search/index.do.
Special notes
1
The legal requirements to be complied with include:
Carriage of Goods Act 1979;
Insurance Law Reform Act 1977;
Land Transport Rule: Dangerous Goods 2005;
Fair Insurance Code (Insurance Council of New Zealand Inc,
http://www.icnz.org.nz/regulation/fair-insurance/).
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2
Any new, amended, or replacement Acts, regulations, Rules, standards, codes of
practice, or Land Transport New Zealand requirements or conditions affecting this
unit standard will take precedence for assessment purposes, pending review of this
unit standard.
3
A road transport operation may form part of an organisation’s activities or it may
constitute a complete organisation.
4
Definition
material fact is anything that would affect the judgement of a prudent underwriter in
accepting the transfer of a risk and the terms that would be imposed.
Elements and performance criteria
Element 1
Demonstrate knowledge required for insurance decisions for a road transport operation.
Performance criteria
1.1
The concept of risk management is described in terms of the identification,
mitigation, transfer, elimination, and avoidance of risks.
1.2
The role of insurance brokers is described in terms of knowledge of products,
and independence.
1.3
Different types of insurance cover are explained.
Range
1.4
comprehensive, third party fire and theft, third party only, selfinsurance.
Decisions regarding insurance cover are explained in terms of the impact of
insurance excess, insurer discount options, and insurance cover terms and
conditions.
Element 2
Describe insurance cover for a road transport operation.
Performance criteria
2.1
The description includes major subjects for insurance cover relevant to a road
transport operation.
Range
non-transport statutory liabilities for employers; damage to the
environment; vehicles; plant; equipment; premises; loss of use or
profit; accident, medical, life, and income protection.
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2.2
Conditions that are written into policies are described in terms of impact on
compensation and renewal premiums.
Range
excess, market value, at fault, public liability, drivers aged under
25, unlicensed driver, failure to comply with law.
2.3
The description includes consequences for the insured party of failing to comply
with obligations and procedures.
2.4
Specialist insurance cover is described in terms of bailee, marine in-transit, and
liability over and above carrier’s liability under the Carriage of Goods Act 1979.
Element 3
Describe public liability insurance for a road transport operation.
Performance criteria
3.1
Public liability is described in terms of compensation for loss or damage to
property.
Range
3.2
negligence, tenant’s liability, dangerous goods emergencies.
The description includes exclusions from public liability insurance cover.
Element 4
Describe the features of material fact that can affect insurance cover and compensation for
a road transport operation.
Performance criteria
4.1
The obligation of a road transport operation to disclose material fact is
described in terms of insurance cover.
4.2
Material fact of interest to an insurance operation is described relevant to a road
transport operation.
Please note
Providers must be accredited by NZQA, or an inter-institutional body with delegated
authority for quality assurance, before they can report credits from assessment against
unit standards or deliver courses of study leading to that assessment.
Industry Training Organisations must be accredited by NZQA before they can register
credits from assessment against unit standards.
Accredited providers and Industry Training Organisations assessing against unit standards
must engage with the moderation system that applies to those standards.
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Accreditation requirements and an outline of the moderation system that applies to this
standard are outlined in the Accreditation and Moderation Action Plan (AMAP). The
AMAP also includes useful information about special requirements for organisations
wishing to develop education and training programmes, such as minimum qualifications for
tutors and assessors, and special resource requirements.
Comments on this unit standard
Please contact NZ Motor Industry Training Organisation (Incorporated) info@mito.org.nz if
you wish to suggest changes to the content of this unit standard.
 New Zealand Qualifications Authority 2016