Insurance (Theory)

Paper Code: 
25SBFS202
Credits: 
02
Contact Hours: 
30.00
Max. Marks: 
100.00
Objective: 

The course will enable the students to provide a comprehensive understanding of insurance principles, types,
risk management strategies, and the regulatory environment to make informed insurance decisions.

Course Outcomes: 
Course
 
Learning outcome (at course
 
level)
 
Learning and
Teaching Strategies
 
Assessment
Strategies
 
Course
Code Course Title
 
25SBFS202
 
Insurance
(Theory)
 
CO67 Analyze the
fundamentals of insurance and
classify the risk and hazards on
insurance by understanding
the concept of the Risk
Management process.
CO68 Examining the principles
and essentials of the
insurance contract.
CO69 Distinguish between
different types of Insurance
and examine the process of
issuing of insurance policy.
CO70 Critically Evaluate
the Calculation of
premium and claim
settlement Procedures.
CO71 Analyze the structure and
functioning of various insurance
distribution channels and
intermediaries of the insurance
sector.
CO72 Contribute effectively in
course-specific interaction
 
Approach in teaching:
Blended Learning,
Collaborative approach,
Interactive Lectures,
Discussion, Group
Projects, PowerPoint
presentation.
Learning activities for
the students:
Self-learning
assignments, Seminar
presentations, Case
Study Analysis,
Brainstorming activities
 
Class tests, CA
Test,
Semester end
examinations,
Quiz,
Evaluation of
student
Presentations,
Evaluation of
Individual and
group projects,
Assessment of
Project Reports
and viva voce.
  
   
   

 

6.00
Unit I: 
Insurance and Risk Management

Insurance: Meaning, Definition, Characteristics, Functions, Limitations.
• Insurance as an Investment Opportunity. Types of Insurance- Life, General, Marine, fire Insurance.
Risk & Risk Management

 Risk: Concept & Classification of Risk, Methods of handling Risk, Perils,
 Hazards, and Types of Hazards.Risk Management: need, Process

6.00
Unit II: 
Principles of Insurance & Essentials of Insurance Contracts

 Principles of Insurance: Principle of Utmost Good Faith, Principle of Insurable interest,
 Indemnity, Subrogation, Causa Proxima.
Essentials of Insurance Contracts: Legal requirements of Insurance contract.
 Life Vs. Indemnity contracts, General Law of contract Vs. Insurance contract

6.00
Unit III: 
Types of Insurance

 Overview of Over insurance, Under insurance and Double insurance
 Reinsurance: Meaning, characteristics, Method of Reinsurance, Double Vs. Reinsurance.
Types of Life Insurance plans: Annuity, endowment, Term plans, Unit Link Plans, whole life policy.
Process of issuing Life Insurance policy

6.00
Unit IV: 
Calculation of Premium & Settlement of claim

 Calculation of Premium: Net premium, Gross premium,
 Methods of computation of Premium-Assessment plan, Natural premium Plan, Level Premium Plan,
Mortality table-meaning, characteristics, need
Settlement of claim: Death claims, Maturity/Survival claims

6.00
Unit V: 
Insurance Distribution in India, Intermediaries and Bancassurance in India:

 Insurance Distribution in India: Multiple distribution channel-Agents, banks, Brokers ,Work site marketing,
Internet, Invisible Insurer.
 Insurance intermediaries: Insurance broker, code of conduct for broker, Insurance agents, Surveyor or
loss assessor, Third party Administrators (TPA)-Health services, Corporate agents.
 Bancassurance: Meaning, Advantages ,Bancassurance -some emerging issues, Bancassurance models.

Essential Readings: 

1. MJ Mathew,” Risk Management and Insurance”,RBSA Publications, Jaipur.
2. “Risk and Insurance management” Dr. R.K. Kothari, Dr. ukeshJain, RBD publications, Jaipur
3. Neelam C. Gulati,” Principles of Insurance Management", Excel books.
4. Insurance management(text and cases), Swarup C. Sahoo, Suresh C.Das, Himalaya publishing
house
5. Rejda & McNamara, Principles of Risk Management and Insurance, Pearson, 13th Edition, 2017.
6. Sethi Jyotsana & Bhatia Nishwan, Elements of Banking and Insurance, PHI Learning, Second
Edition, 2012.

References: 

1. Principles of risk management and Insurance, George E. Rejda, Pearson Publication
2. Insurance and risk management, P.K. Gupta, Himalaya Publishing House
3. Kenneth Blackawd Harold Skipper, Life and Health Insurance, Pearson, 13th Edition, 2009.
4. Mishra, M.N and S.B. Mishra. (2016). Insurance: Principles and Practice. S.Chand publications.
5. Life Insurance module, Vol.I, II

e- Resources
1. https://books.askvenkat.org/risk-management-insurance-book-pdf-free...
2. https://books.askvenkat.org/mba-books-free-download-pdf
3. https://archive.org/details/riskmanagementin0011trie
4. National Digital Library
5. World EBook Library
6. IRDA Journal
7. FIIB Business Review- http:// sagepub.com
8. Directory of Open Access Journals
9. R.B.I. Bulletin.

Academic Year: 
2025-2026
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