Protection of members with capped liability under the APIV Scheme has never been more important than during these unprecedented times.
Following our Member News dated 16 April 2020, we are now ready to send the 2021 APIV New Scheme Survey to all our current APIV members and prospective APIV members, namely our API certified plant and machinery valuation professionals.
In the next 2-3 business days, the Survey will be arriving in the mailbox of the relevant business contact person for APIV member firms and individual API members holding the Certified Practising Valuer (Plant & Machinery) certification.
The deadline for completion of Survey will be Sunday, 31 May 2020. Each of the APIV member firms will need to complete the Survey by this date. Our staff are here to help run you through the responses required.
Q&A on 2021 APIV New Scheme Survey
- What is the 2021 APIV New Scheme Survey about?
To support new capping arrangements under the New Scheme, the API must collect full and accurate membership, insurance and claims data from current and prospective APIV members through a comprehensive survey.
- Why is the APIV Scheme important to me?
We know from past experience that challenging times like these can increase claims against our members. Even if a claim does not proceed to a judgement where the liability cap would be enforced by the court, we know that the APIV Scheme is an important factor in negotiating settlements out of court, hence an effective and equitable Scheme provides vital protection for APIV members.
- How does the APIV Scheme different from my professional indemnity insurance?
The APIV Scheme is not a professional indemnity insurance (PII). The APIV Scheme works in conjunction with your PII policy.
The first layer of protection from a claim in relation to your work is your/your firm’s PII. You will be covered for a claim up to the limit of indemnity under your/your firm’s PII policy, for example $1 million.
The second layer of protection from a claim in relation to your work is the APIV Scheme. Subject to your/your firm’s compliance with the Scheme requirements, the APIV Scheme ensures that your/your firm’s liability is capped to a predetermined level and that you/your firm are/is not personally liable beyond that point.
For example, if you are sued for $1.8 million and your/your firm’s PII policy only covers you for $1 million, you/your firm will personally need to pay out the ‘gap’ of $800,000 if you do not have the benefit of the APIV Scheme.
On the other hand, if your liability cap under the APIV Scheme is $1 million, your liability is capped at $1 million provided you can show your compliance with the APIV Scheme requirements, one of which would be to hold a PII coverage of at least $1 million. In that instance, your/your firm’s PII policy will cover you for $1 million but you will not need to pay the ‘gap’ of $800,000 as it is simply ‘written off’ under the professional standards legislation.
- Why is the 2021 APIV New Scheme Survey important to me?
In drafting the New Scheme, our key focus will be to review the current liability caps and to enhance the operation of the Scheme. To provide you with maximum protection possible under the professional standards legislation, we need your help through completion of the Survey.
Full and accurate data will assist us to implement the ‘gold standard’ in our New Scheme, which strikes an optimal balance between consumer protection and liability capping arrangements for our members. Such data will also ensure that we are able to investigate future solutions and effectively liaise with our external stakeholders for the benefit of our members, including insurers and lenders.
Please note that a low response rate or incomplete/inaccurate responses could result in the PSC determining ineffective/inequitable liability caps under the New Scheme that may be of limited use to the profession, or our application being declined.
- Who will need to complete the 2021 APIV New Scheme Survey?
Each APIV member firm will need to complete one Survey. In addition, the APIV team will be in contact with plant and machinery valuation firms to arrange for completion of the Survey.
- Can I have an extension for the survey completion?
We understand that the deadline of 31 May 2020 may be tight for you during these challenging times. However, noting that these are the times when we really need an effective and equitable scheme to protect our members, we are pushing ahead to complete the new Scheme application process as soon as possible. Pull out your most recent PI renewal and you will find most of the information there.
We would greatly appreciate your timely assistance in completing this crucial survey to ensure that we can continue to support you with a further enhanced and equitable professional standards scheme.
- What happens if I don’t complete the survey?
Completion of the 2021 APIV New Scheme Survey is a mandatory part of an APIV member’s APIV membership obligations.
- Who will be eligible for participation in the New Scheme?
Under the current APIV Scheme, only real property valuers are eligible to participate in the APIV Scheme.
Under the New Scheme, subject to the approval by the Professional Standards Councils (‘PSC’), plant and machinery valuers will also be eligible to participate in the APIV Scheme.
- Is the 2021 APIV New Scheme Survey the same as the APIV Annual Compulsory Compliance Questionnaire?
No. The 2021 APIV New Scheme Survey is separate and in addition to the APIV Annual Compulsory Compliance Questionnaire (Declaration) that APIV member firms complete as part of the annual renewal process.
- Can I have a copy of the full survey?
Please contact the APIV Team to obtain a pdf copy of the full survey.
- How do I contact the APIV team?
As always, if you have any questions or concerns about this alert or the 2021 New Scheme Survey, please contact the APIV team via [email protected] or on 03 9644 7500.
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