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Frequently Asked Questions (FAQs)
Q: (a) Who is RSA (Report Systems Australia)?
A: Report Systems Australia (RSA) is an affiliated company to Jardine Lloyd Thompson (JLT), that supplies a handbook/report methodology that provides risk management for the JLT/RSA PI & PL Scheme. The principal of RSA is Steve Allen.
The RSA handbook methodology and format has been nationally accredited as meeting and exceeding the Australian Standards for pre-purchase building inspections and timber pest reporting by UniSearch Pty Ltd (UNSW). The reporting format has also been endorsed by Lloyd’s Syndicate Underwriters (RJ Wallace Syndicate) for the PI & PL Scheme as an integral risk management tool for the scheme.
Q: (b) Why do I have to be licensed to use the RSA Paperwork?
A: Report Systems Australia owns the copyright and patent for the RSA Reporting Formats. Legal use of these formats is therefore facilitated by an annually renewable licence fee.
Q: (c) I currently use my own paperwork and I am considering joining the JLT/RSA Scheme. Do I have to use the JLT/RSA paperwork or can I use my own?
A: It is a condition of insurance that ALL scheme participants be accredited with Report Systems Australia. Accreditation also dictates that you MUST use the RSA paperwork. In exceptional circumstances, Lloyd’s Syndicate Insurer’s will accept alternative reporting formats provided they are approved independently by RSA and UniSearch (UNSW) as the schemes accreditation authorities. Verification that independent reporting formats meet the RSA criteria may incur separate fees which will need to be borne by the individual applicants.
Q: (d) How can I implement a change from my old reporting formats to the RSA formats?
A: Successful RSA accredited applicants will be sent the RSA formats via the post. The RSA Reporting Format comes with a self explanatory handbook that outlines the use of the reports. However, if additional guidance is needed in utilising the reporting formats, Steve Allen from RSA will happily facilitate additional training.
The reports also come in a disk format, a carbonised pad format and a palm top computer format.
Q: (e) If I have a claim while I am on the RSA/JLT Scheme and have not used the RSA paperwork, do I still have cover?
A: It is a condition of insurance that all scheme participants utilise the RSA paperwork. The intent of the paperwork is to provide protection to individual insureds, but more importantly, to provide insurers with a ‘defendable’ platform on which to provide a defence to the insureds in the event of litigation.
Scheme participants who incur claims post policy inception date with the RSA Scheme and who have not used the RSA paperwork without prior written RSA/Unisearch NSW approval, will risk being denied indemnity, as a consequence of breach of the scheme Terms and Conditions.
It is imperative that all scheme participants comply with the RSA Reporting formats to ensure indemnity is granted in the unlikely event of a claim.
Q: (f) My main type of work is expert witness reports, consultancy reports, litigation and mediation reports. The RSA Paperwork is mainly for timber pest reports and pre-purchase building inspections. Can I use my own paperwork then?
A: Those types of reports are deemed "Special-Purpose Reports" and as such are outside the handbook guidelines which deal with Standard Inspection Reports.
However, when completing a special-purpose report the RSA handbook methodology still applies, i.e. the client must agree, understand and acknowledge the scope of inspection and report including any limitations and exclusions, via a separate Pre Engagement Inspection Agreement.
Q: (g) Pre - Engagement Agreements. How do I comply with the Scheme Requirements?
A: A Pre - Engagement Agreement is a fundamental component of establishing a contract between you as the insured and your client. It establishes the scope and limitations of all work provided by you as the inspector. It is therefore important that your client is aware of the Terms and Conditions under which you provide professional services.
Pre – Engagement Agreements must be signed prior to inspections and treatments being performed. In the case where Real Estate Agents and Solicitors provide the referral business, it is only necessary that those parties be provided with one written copy of the Pre – Engagement Agreement and that this standard will establish the basis of which all future services are provided.
As an additional security measure, all potential clients and scheme insured’s should include a copy of the Pre – Engagement Agreement/Terms and Conditions on the back of all invoices issued to client’s. Therefore payment on any invoice imputes a legal understanding of the Terms and Conditions of any inspectional treatment done.
A standardised version of the Pre – Engagement Agreement can be found in the RSA Handbook.
Q: (h) When do I report a claim/circumstance to my insurer?
A: All Professional Indemnity policies operate on a claims-made basis. As such ALL claims and circumstances must be reported to JLT at the time the insured first becomes aware of a potential claim, irrespective of whether any formal demand has been issued or not. In doing this, insureds protect themselves in the event that should the notifications manifest themselves into a quantifiable litigated claim. By reporting all claims and circumstances, insureds also ensure that their insurers position is not prejudiced in the event a deterioration in the claim/notification.