Principles of Insurance and Risk Management

Objective Max Hours 40

The objective of the course is to acquaint the student with the basic knowledge of the
principles of risk and insurance and the methods of risk management found in strategic
planning. It is an attempt to give some basic principles of insurance buying, with an emphasis
on how to develop a strong insurance and financial estate planning program.

Module 1: Introduction and Scope of Insurance: (9 Sessions)
Historical perspective, Conceptual Framework, Meaning, Nature and Scope of Insurance,
Classification of Insurance Business viz., Life Insurance and General Insurance. Fundamental
principles of insurance- Utmost good faith, Insurable Interest, Indemnity & its corollaries,
Proximate cause, Co-insurance, Condition of Average.

Module 2: Financial Aspects of Insurance Management (12 Sessions)
Role of Financial Institutions, Insurance Companies, Financial Market, Structure and
functions, Important Life Insurance Products and General Insurance Products, Determination
of Premiums and Bonuses, Various Distribution Channels
Module 3: Risk Management and Underwriting (9 Sessions)
Risk, Uncertainty, Peril, Hazard, Classification of risk, Meaning, Scope & Objective of Risk
Management, Role of Actuaries- Product framing, Underwriting guidelines, Re-insurance,
Preparation of Insurance Documents, Policy Conditions
Module 4: Settlement of Claims, Insurance Laws and Regulations (10 Sessions)
Insurance Act 1938, Life Insurance Corporation Act 1956, IRDA Act 1999, Consumer
Protection Act 1986, Ombudsman Scheme, Income Tax Act, Wealth Tax Act 1957, Married
Women's Property Act 1874. Code of Conduct in Advertisement, Financial Planning and
Taxation, Bank Deposit Schemes, Tax Benefits under Life Insurance Policies

Text Books
Mishra M.N. - Insurance Principle & Practice (Sultan Chand & Company Ltd., New
Delhi)


Suggested Readings:
Ganguly Anand - Insurance Management (New Age International Publishers, New
Delhi)
Vaughan & Vaughan - Fundamentals of risk & Insurance (John Wiley & Sons, New
York)
Srivastava D.C., Srivastava Shashank - Indian Insurance Industry Transition &
Prospects (New Century Publications, Delhi)
Kakkar D.N. & Srivastava S.N.- Insurance & Risk Management (New Age
Publication, New Delhi)