*EP APC Client care Flashcards
Why does your firm have Professional Indemnity insurance?
It is one of the Rules of Conduct for Firms, 2007 (as amended 2017)
To protect surveyors, clients and third parties against negligence claims where there is a duty of care breached and a claim for damages arises
How much professional indemnity insurance does your firm require (3 bands)?
Firm’s turnover in the preceding year determines the minimum level of indemnity required for every claim:
£100,000 or less => £250,000
£101,000 - £200,000 => £500,000
£201,000 and above => £1,000,000
To manage their risk adequately, some firms may wish to hold a higher level of indemnity.
AWH = £1,000,000
RESEARCH NEW PII INSURANCE DOC
What is the maximum level of uninsured excess (2 bands)?
Liability of up to £500,000 => greater of 2.5% of the sum insured or £10,000
Liability of over £500,000 => 2.5% of the sum insured
When would your insurer need to know if a complaint was made against your firm?
Depends on your agreement with the insurer but usually when the complaints handling procedure is triggered as this could lead to a claim for negligence.
AWH Procedure
What procedures are required to be in place if a complaint has been made (RICS guidance, timescales, firm services)?
- RICS has issued a Guidance Note on Complaints Handling, 2016
- Complaint should be acknowledged within 7 days and investigated within 28 days
- Firms must include a RICS approved ADR method e.g. Centre for Dispute Resolution (CEDR) or the RICS Dispute Resolution Service
What is the guidance set out in RICS Complaints Handling, 2016 (procedure, PII, CHP issue, complaints, inclusion)?
- Firm’s written complaint handing procedure (CHP) must be approved by RICS
- Notify your PII insurer as soon as possible if there is a complaint as this could lead to a claim for negligence
- Details of the CHP should be issued to a client at the same time as Terms of Business
- Complaints log must be maintained to show the details, progress and outcome of any complaints
- Firms must include an RICS approved Alternative Dispute Resolution (ADR) mechanism in the Complaints Handling Procedure
When you first receive a complaint, how should it be dealt with (initially, complaint format, issue, appointment details)?
Aim to deal with the complaint in house initially
Ask for the complaint to be made in writing
Issue details of the CHP to the complainant
Share the details of the Complaints Handling Officer with the complainant, as the person who should be contacted in the first instance
If a complainant is unhappy with how the complaint has been dealt with in house, what should be done (choice, provision)?
- Use an independent redress scheme chosen by the firm
- Name of the redress scheme must be provided to the complainant e.g. Centre for Effective Dispute Resolution (CEDR), Property Redress Scheme and RICS Dispute Resolution Service
When will the RICS become involved with a complaint?
If a member fails to respond to the complainant or prevents the party gaining access to an independent redress mechanism
What should a sole practitioner do differently with regards to the their complaints handling procedure?
Must nominate a surveyor in another firm to act as their complaints handling officer
How do you act upon feedback from a Client?
- Feedback should be formally recorded in some way, i.e. Client Satisfaction Questionnaires.
- If feedback is negative, it should be verified and necessary action taken.
- If a formal approach is required, this should follow the CHP.
What other insurance (other than PI) would you need to have if you had your own premises?
- Employers Liability Insurance.
- Third party Liability Insurance.
Can you give me more detail on what Employers Liability Insurance covers?
• Covers employers for compensation claims against you by employers for accidents or illness that occur during their work.
Can you tell me more detail on what Third Party Liability Insurance covers?
• Covers you against actions of a third party.
Third-party insurance is a policy purchased by the insured (first party) from the insurance company (second party) for protection against the claims of another (third party).
What does good client care require (understand, approach, communication, policy, procedure, insurance)?
- A clear understanding of the client’s objectives and aims.
- A professional approach.
- Clear, concise communication.
- A quality assurance policy. (a statement of the company’s desired level of quality for a service or product.)
- Complaints handling procedure.
- Professional Indemnity Insurance.
How do you establish a Client’s objectives (2 steps)?
- Have a pre-start meeting with them.
- If there is still ambiguity then have further meetings/correspondence to clarify.
What do you clarify with regards to a clients objectives (5)?
- Fee
- Required turnaround time
- Level of detail - Report
- Any specific items to report/focus on
What components must a CHP include?
RICS provides a template to assist firms which states;
- complaint reviewed by senior member of firm or complaints officer
- the compliant reviewed by independent 3rd party
- notify PI insurer of complaint
- must include the contact details of those who will deal with the complaint
- must include a redress mechanism
- must be clear simple
- must be free except stage 2, but fees covered by the complainant
What is client care?
Looking after a client’s best interests and providing an appropriate service that satisfies their needs.
Can be achieved by 1. professionalism 2. competence 3. trust 4. communication
When should you decline an instruction of new work?
- Conflict of interest
- Outside scope
- Illegal activities
What is a conflict of interest?
Where there is reduced impartiality as there is a pre-existing relationship which affects the duty to deliver services for a client
