Insurance Management (Functional Electives Finance)

Paper Code: 
MBF-423
Credits: 
4.0
Contact Hours: 
40.00
Max. Marks: 
100.00
Objective: 
  • To establish the context of the life insurance industry as part of the financial services industry
  • To familiarize students with the diverse aspects of ‘risk’ and its relationship with the insurance business.
  • To give students an overview of the structure of modern insurance organizations
  • To acquaint students with the salient features of the operations performed by insurance companies
  • To acquaint the students with the regulatory environment of and framework of IRDA for the insurance industry.
10.00
Unit I: 
Introduction to Risk and Insurance

Concept of insurance, purpose and need of insurance, basic principles of insurance – utmost good faith, insurable interest material facts, indemnity, proximate cause. Insurance as a social security tool, role of insurance in economic development. Risk management – meaning & process, objectives.

10.00
Unit II: 
Life Insurance

Basic principles of life insurance, functions of life insurance, life insurance product – endowment, life annuities, unit and index linked, pension funds, Calculation of Premium and Settlement of Claim, Government’s role and contribution of LIC of India as economic & social security. Duties and rights of insurance agent, working system of insurance agent.

8.00
Unit III: 
Fire Insurance

Characteristics or nature of fire insurance, significance of fire insurance, principles of fire insurance, procedure of effecting fire insurance, types of fire insurance policies, claim procedure under fire insurance

4.00
Unit IV: 
Marine Insurance

Meaning and scope of marine insurance, procedure effecting marine insurance, types of marine polices

8.00
Unit V: 
Legal Framework

Insurance Act 1938, Insurance (Amendment) Act, 2002, IRDA Regulation 2002, General Insurance Business (Nationalisation) Amendment Act, 2002 (Elementary provisions only), Recent Developments in the insurance sector

Essential Readings: 
  • Principles of Risk management and Insurance (9th Edition) – George E. Rejda, Pearson Education, 2009.
  • Fundamentals of Risk & Insurance (9th Edition) - E.J. & Therese Vaughan, John Wily & sons, 2007.
References: 
  1. Life and Health Insurance (13th Edition) - Kenneth Blackawd Harold Skipper, Pearson, 2009.
  2. Life Insurance, ICFAI University Press, 2009.
  3. R.B.I. Bulletin.
  4. IRDA Journal.
  5. Asia Insurance Post.
  6. FORTE Insurance Journal
  7. www.Insuranceinstituteofindia.com