Guidelines & Tips
Available below are best practice guides for ECF users, simply choose the tab that is appropriate to you.
Highlighted below is the process relating to multi-currency claims, which if taken into account by brokers and carriers, will ensure that currencies advised on a claim remain throughout the lifecycle of a claim. The currencies should remain throughout the claim once advised and should reflect the updated financials or o/s loss qualifiers (if financials no longer exist) that are supported by the clients advised documentation. Some scenarios and examples below help the understanding of the multi-currency process.
Investigations carried out can confirm the following;
that any advice transaction raised by a broker will allow the previous advised currencies to be edited or removed that a settlement transaction that follow a previous settlement transaction will NOT allow the previously advised currencies to be edited or removed if a settlement transaction includes more than one currency and one of these currencies has a nil qualifier, this currency will only remain on the next TR if a settlement is raised in the event that the subsequent transaction is an advice the currency with the nil qualifier will NOT remain.
TR1 Advice – currencies GBP and USD
TR2 Advice – currencies are updated to GBP, EUR and USD
TR3 Settlement – currencies collected GBP and USD
TR4 Settlement – currencies remain GBP and USD.
Financial settlement occurs on USD. GBP currency not
being settled and has no reserve, the outstanding qualifier is set to NIL.
TR5 Advice inc closure – Only the USD settled currency remains and is
updated with a CLOSED qualifier. GBP does not remain.
A Lloyd’s carrier’s internal view of this claim would display three currencies – GBP, EUR and USD – with settlement and closure recorded for USD and the claim being closed,. However, the GBP and EUR currencies remain open. At this point the only way to rectify this is
for the broker to add a further transaction advising that GBP and EUR currencies are closed, although the transaction will be raised on what is deemed a closed claim, however it is required to tidy up the record and the submissions made throughout the claim and UCR’s lifecycle.
From advice to settlement or settlement to advice, the currencies advised may not remain as an advice allows currencies to be edited or removed. Brokers dealing with multicurrency claims via batch or on-line CLASS should make themselves aware of the above to ensure the currencies advised remain throughout the lifecycle of a claim. Carriers should also ensure that the currencies advised remain throughout.