AC29/4/2013

Itemno.4.120
S.Y.B.Com
PrinciplesandPracticeofInsurance
Objectives
1. Tohaveacomprehensiveunderstandingofinsuranceindustry
withkeyinputs
2. Tounderstandinsuranceasanintegralpartoffinance.
3. Tolearnabouttheimportanceofinsurance,andalsobasic
insuranceconcepts.
4. Toacquaintthestudentswithriskmanagementprocessandhow
theinsuranceindustryoperates.

SEMESTERIII

Unit1Introductiontoinsurance
InsuranceDefinitionandbasicconceptsNeedforandImportanceofinsurance
NatureofinsuranceBenefitsofInsuranceOriginandDevelopmentofInsurance
PrinciplesofinsuranceUtmostgoodFaithInsurableinterestindemnityContribution
SubrogationProximatecauseReinsurancePurposeandTypesofReinsuranceDoubleinsurance

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Unit2Riskmanagement
Concept of riskRisk v/s uncertaintyTypes of risksPure and Speculative risksInternal and
External risksFundamental and Particular risksStatic and Dynamic risksInsurable and Non
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insurable risksobjectives and Importance of risk management Risk management process

MethodsofhandlingrisksRiskidentification(15)
Unit3LifeInsurance
ClassificationofInsuranceLifeinsuranceOriginandDevelopmentoflifeinsuranceFeaturesof
lifeinsurancecontractAdvantagesoflifeinsuranceTypesofLifeinsuranceplansWholelife
insuranceTerm insuranceEndowment and Money Back policiesUnit linked insurance plan
Children plansGroup life insuranceAnnuities and PensionsRidersCalculation of premium

Surrendervalueandpaidupvalueofpolicy.(8)
Unit4GeneralInsurance
General insuranceEssentials of General insurance contractRole of General insurance in
Economic a development Fire insurancePrinciples of fire insuranceTypes of fire insurance
policiesMarine insuranceScope of marine insurancePrinciples of Marine insuranceMarine
insurance policiesMotor insuranceKinds of motor vehicle insurance policies Health
insuranceTypes of health insurance policiesSocial insurance Crop insuranceBurglary
insuranceEngineeringinsurance.(7)

SEMESTERIV
Unit4Legalframework
Indian Contract Act 1872Essential elements of a valid contractInsurance Act 1938
RegistrationNomination and AssignmentLIC Act 1956Functions of CorporationGeneral
Insurance Business(Nationalisation)Act 1972 Objectives of the ActFunctions of GIC IRDA Act
1999Powers and functions of IRDAConsumer Protection ActInsurance Ombudsman

SchemeTypesofinsuranceorganizations(12)
Unit5ChannelsofDistribution
InsuranceintermediariesAgentsFunctionsofAgentsProcedureforbecominganagent

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BrokersFunctionsofBrokerDifferencebetweenInsuranceAgentandanInsuranceBroker
CorporateAgentsBancassuranceAdvantagesofBancassuranceBancassuranceModels

BancassuranceinIndiaEmarketingOFINSURANCE.(12)
Unit6Policyservicingandclaimssettlement
ProcedureforobtainingpolicyinlifeandGeneralinsuranceClaimsettlementprocedureInlife
insurance,FireinsuranceandMotorinsuranceMaturityclaimsinlifeinsuranceUnderwriting
Purposes of underwritingThe underwriting processTypes of underwritersRole of Actuary
DutiesofanActuary(11)
Unit7IndianInsuranceIndustry:Transitionandprospects

ReformsintheIndianInsurancesectorMalhotracommitteePositiveandnegativeimpactsof
liberalization on the insurance industryPrivatisation of Insurance sector Micro insurance
ModelsofmicroinsuranceCasestudiesinInsurance.

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Books for Reference: --1. Modern concepts of InsuranceM.N. Mishra-S.Chand and Co. Ltd
2. Elements of Banking and Insurance- Jyotsna Sethi & Nishwan Bhatia
3. Insurance-Fundamentals, Environment and Procedures-B.S.Bodla, M.C. Garg ,
K.P.SinghDeep and Deep Publications Pvt Ltd.
4. Risk Management & Insurance- Concepts and Practices of Life and General Insurance-S.
Arunajatesan & T.R. Viswanathan
5. Insurance Theory and practiceN.K. SharmaDND Publications
6. Insurance-Principles and PracticesM.J. Mathew-Jaico Publishers

QuestionPaperPattern
Semester3
40MARKSInternal
60MARKSSemesterEndExam:TWOHours
AllQuestionsarecompulsory

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Figurestotherightindicatemarks.
Maximummarks60.Duration:2hrs.
Q1.Answerany2fromthefollowing:

Marks

15

Marks

Marks

15

Marks

15

a.b.c.Module1
Q2.Answerany2fromthefollowing:

a.b.c.Module2
Q3.Answerany2fromthefollowing:
a.b.c.Module3
Q4.Answerany2fromthefollowing:
a.b.cModule4

Semester4

40MARKSInternal
60MARKSSemesterEndExam:TWOHours
AllQuestionsarecompulsory
Figurestotherightindicatemarks.
Maximummarks60.Duration:2hrs.
Q1.Answerany2fromthefollowing:

Marks 15

marks 15

Marks 15

Marks 15

a.b.c.Module5
Q2.Answerany2fromthefollowing:
a.b.c.Module6
Q3.Answerany2fromthefollowing:
a.b.c.Module7
Q4.Answerany2fromthefollowing:
a.b.c.Module8

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15

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