Review and Monitor Members’ compliance with various obligations
The APIV administers the Scheme, and as part of discharging its administrative function, the APIV has to review and monitor Member’s compliance with the professional standards legislation requirements and the requirements of the APIV Scheme.
The APIV may review a Member or prospective Member’s compliance with the Scheme at the time of processing a new application or annual Membership renewal or may audit such compliance at any time. Any such review or audit is carried out by the APIV as a purely administrative function in its capacity as the administrator of the Scheme.
It is not the APIV’s role to advise the Member as to its compliance obligations and the APIV does not make any representation or warranty to Members as to whether or not they are compliant at any particular point of time. Ultimately, whether a Member has met all relevant compliance obligations under the Scheme, is a matter which will be determined by a Court in the context of the particular claim in respect of which the Member seeks to rely upon the Monetary Ceiling.
The APIV is required to closely monitor Members’ compliance for the purpose of reporting to the PSC about Scheme compliance including with respect to:
- the requirement that Members comply with the APIV Insurance Standards, including the requirement that their professional indemnity insurance covers the full amount of their limited liability for valuations of real property;
- the requirement that Members have sufficient business assets or insurance cover to reconcile compensation that may be awarded relevant to the ceiling of the liability limitation. Compliance with insurance and business assets are a key part of the Scheme. The APIV “must monitor Members’ compliance with this fundamental aspect of participating in a Scheme – for example, as part of annual Membership renewal – and report to the Councils” […]. This compliance strategy aims to ensure that all participants in a scheme are adequately covered for their capped liability; and
- API CPD requirements.
The Annual Compliance Self-Declaration, whereby Members self-declare compliance with the Scheme requirements is designed to check compliance with this requirement by Scheme Members at the time of Membership renewal. The APIV may also audit any Member in relation to its compliance with the Scheme. (Random Compliance Audit)
Collect certain data from Members and Report to PSC
Pursuant to the professional standards legislation, the APIV must collect data and report to the PSC on:
- notifications/claims received by Members, including:
- the source of the data (i.e., from Members, from insurance industry, etc);
- the number and the dollar amount of the claims;
- the types of claims, causes of claims and demographic information; and
- identification of trends and conclusions that may be drawn from the claims data.
- complaints and discipline of Members, including:
- an analysis of the trends in complaints; and
- the relationship between claims, complaints and continuing education of Members.
- cost and availability of insurance for the current year;
- all notifications/claims at or approaching the Member’s respective monetary ceiling (immediately upon receipt of notification from a Member);
- outcome of the annual compliance audit; and
- all breaches of professional standards legislation or APIV Scheme requirements by Members.
The APIV collects this data from Members through the Complaints/Claims and Notifications form and the Compulsory Annual Compliance Questionnaire (declaration), which must be completed by each professional indemnity insurance policy holder upon renewal of their APIV Membership.
This information is collected by the APIV from Members principally to provide aggregated and unidentifiable data to the PSC. Where appropriate, this information may also be used to identify key risk areas for the purpose of providing educational material to Members and to generally improve the standard of APIV’s Member services