Insurance (Theory)

Paper Code: 
24DFSG611A
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

This course will enable students to understand the fundamentals of insurance, risk management principles, insurance contracts, types of insurance, reinsurance, premium calculation methods, and claim settlement processes.

 

Course Outcomes: 

Course

Learning outcome

(at course level)

Learning and teaching strategies

Assessment Strategies

Course Code

Course

Title

 

24DFSG 611A

Insurance

(Theory)

 

CO217: Analyze the characteristics & functions of Insurance in context to   various Life Insurance plans. 

CO218: Explore various Perils, Hazards and also classify the insurable risk and appraise the different methods of handling risk to evaluate the risk management process.

CO219: Evaluate the principle and essential legal requirements of insurance contract

CO220: Differentiate different types of Insurance and appraise the process of issuing life insurance policy.

CO221: Differentiate types of premium and critically evaluate the methods of Calculation of premium and claim settlement Procedures.

CO222: Contribute effectively in course-specific interaction

 

Approach in teaching: Interactive Lectures, Discussion, Tutorials, Practical cases, Powerpoint presentation.    

 Learning activities for the students: Self-learning assignments,  Seminar presentations.

CA test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation..

 

12.00
Unit I: 
Insurance

• Meaning, Definition, Characteristics, Functions, Limitations. Insurance as Investment Opportunity. Types of Life Insurance plans- Annuity, endowment, Term plans, Unit Link Plans, whole life policy. Difference between Insurance & Gambling. Types of Insurance- Life, General, Marine, fire Insurance.

12.00
Unit II: 
Risk

• Meaning, definition, characteristics of Insurable risk Classification of Risk, Methods of handling Risk, Perils, Hazards, Types of Hazards.
• Risk Management: Meaning, need, Process

12.00
Unit III: 
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. Distinction between General Law of Contract and Insurance Contract; Life and indemnity Contract.

12.00
Unit IV: 
Types of Insurance

• Overview of Over insurance, Under insurance and Double Insurance
• Reinsurance: Meaning, characteristics, Methods-Facultative, Treaty, Pooling methods, Advantage of Reinsurance, Double Vs. Reinsurance
• Process of issuing Life Insurance policy

12.00
Unit V: 
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

Essential Readings: 

• MJ Mathew, ”Risk Management and Insurance”,RBSAPublications,Jaipur.
• “Risk and Insurance management” Dr. R.K. Kothari, Dr. MukeshJain,RBD publications, Jaipur
• Neelam C.Gulati,”Principles of Insurance Management", Excel books

References: 

Suggested Readings:
• Insurance management(text and cases), Swarup C. Sahoo, Suresh C.Das, Himalaya publishing house
• Principles of risk management and Insurance, George E. Rajda, Pearson Publication
• Insurance and risk management, P.K. Gupta, Himalaya publishing house
• Life Insurance module,Vol.I,II

E-Content:
• Investments (SIE),https://www.expresslibrary.mheducation.com/bookshelf Workbook for NISM
• Mutual fund products and services, Indian institute of banking and finance

Reference Journals:
• Economic and Political Weekly, www.epw.in
• Indian Journal of Finance
• The Economic Challenge

Academic Year: 
2024-2025
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