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IARM-R14
MBA-RM (2014-16: Term-IV
COURSE OUTLINE
Course Name: Insurance and Risk Management
Credits
3 credits
Faculty Name
Shiba Prasad Padhi
Program
MBA-RM
Academic Year and Term
MBA-RM 2014-16 : Term IV
1. Course Description:
Man needs wealth as matter needs form. Money is the fulcrum of our existence and insurance provides financial security for monetary value of life & property. Unless financial security is provided to life through suitable instruments of insurance, uncertainty of life may result in drain of wealth through premature death, disability and diseases. Loss of or damage to property- both moveable and immoveable-by fortuitous incidents may also cause irreparable loss. Fresh entrants into corporate sector may be called upon to manage corporate wealth. They get attractive pay package, hence the need for them to understand & appreciate the importance of financial security at individual & corporate level.
The course intends to acquaint the managers with all the above risks associated with life, property and liability along with ways for mitigating such losses.
2. Student Learning Outcomes
Be able to understand the broad spectrum of risks pertaining to life, property as well as liability.
Be able to appreciate the utility of various insurance products of general & life insurance companies towards promoting financial security.
Be able to utilize the knowledge gained to securitize life’s earnings -- past, present, and future.
Be able to understand personal risks and the need for personal risk management - both at the workplace and in personal life and of insurance as a system of managing risks of various types.
3. Required Text Books and Reading Material
Session wise readings are furnished in session plan.
Indicative Session Plan
Session 1 & 2
Understanding Risk
Issues to be Discussed
Concept of risk. Risk Vs. uncertainty. Types of risk – Subjective, objective, financial, non-financial, individual, group, static, dynamic, pure, speculative, fundamental, particular and enterprise risk. Peril & hazard. Methods of handling risk – Avoidance, prevention, reduction, retention, transfer, sharing, hedging. Rationale for risk management. Burden of risk on society.
Treatment Lecture Mode
Suggested Readings
Text Books
Principles of Risk Management and Insurance
by George E Rejda, Pearson Education, Chapter 1
Ref. Books
Insurance and Risk Management
by P K Gupta, Himalaya Publishing House, Second Edition, 2010, Chapter 1 & 2
Session 3 & 4
Risk Management and Control
Issues to be Discussed
Risk Management objectives. Risk Management Process – Corporate and personal. Risk Management Information system, Basics of ERM. Framework. Components. Chief Risk Officer. ERM in Insurance
Treatment Lecture Mode
Suggested Readings
Text Books
Principles of Risk Management and Insurance
by George E Rejda, Pearson Education, Chapter 3
Ref. Books
Insurance and Risk Management
by P K Gupta, Himalaya Publishing House, Second Edition, 2010, Chapter 2 & 3
Session 5
Insurance and Risk Management
Issues to be Discussed
What is insurance? It’s elements. Benefit to society and benefit to individuals. Basic idea about the insurance products available for corporates and individual. Insurance and gambling. Insurance and hedging.
Treatment Lecture Mode
Suggested Readings
Text Books
Principles of Risk Management and Insurance
by George E Rejda, Pearson Education, Chapter 2
Ref. Books
Insurance and Risk Management
by P K Gupta, Himalaya Publishing House, Second Edition, 2010, Chapter 4
Session 6 & 7
Fundamental
Principles of
Insurance and Insurance Contracts
Issues to be Discussed
Essential elements of a valid contract. Principles of indemnity, utmost good faith, insurable interest, proximate cause, subrogation and contribution. Arbitration and Average. Endorsements and Riders, Deductibles, Coinsurance
Treatment Lecture Mode with caselets
Suggested Readings
Text Books
Principles of Risk Management and Insurance
by George E Rejda, Pearson Education, Chapter 9 & 10
Ref. Books
Insurance and Risk Management
by P K Gupta, Himalaya Publishing House, Second Edition, 2010, Chapter 5 & 7
Session 8
Insurance industry in India
Issues to be Discussed
Insurance industry before and after IRDA. Industry profile and performance. Benefits to economy. Global insurance industry and India.
Treatment Lecture Mode
Suggested Readings
Website of IRDA
Session 9 to 11 Life Insurance
Issues to be Discussed
Risks exposure of an individual. Products available: Term insurance, endowment plans, whole life plans, annuities, pension plans and ULIPs. Group insurance plans. Policy riders. Policy administration – Assignment, nomination, claims, loans, surrender and foreclosure.
Treatment Lecture Mode
Suggested Readings
Text Books
Insurance and Risk Management
by P K Gupta, Himalaya Publishing House, Second Edition, 2010, Chapter 15, 16, 17, 19 and 20.
Ref. Books
Principles of Risk Management and Insurance
by George E Rejda, Pearson Education, Chapter 11
Session 12 Need analysis for Life Insurance of an individual
Issues to be Discussed
Insurance need analysis – Human life value method and income method
Treatment Case
Suggested Readings
Reading material will be provided
Session 13 Non-life Insurance: Fire
Issues to be Discussed
Risks covered. Kinds of fire insurance. Proposal forms. Policy conditions. Claims procedure and settlement
Treatment Lecture Mode and Case
Suggested Readings
Text Books
Insurance and Risk Management
by P K Gupta, Himalaya Publishing House, Second Edition, 2010, Chapter 24
Session 14 Non-life Insurance: Motor
Issues to be Discussed
Risks covered. Kinds of motor insurance. Proposal forms. Policy conditions. Claims procedure and settlement
Treatment Lecture Mode and Case
Suggested Readings
Text Books
Insurance and Risk Management
by P K Gupta, Himalaya Publishing House, Second Edition, 2010, Chapter 24
Session 15 Non-life Insurance: Health Insurance
Issues to be Discussed
Risks covered. Proposal forms. TPAs, Policy conditions. Claims procedure and settlement. Current market scenario and issues.
Treatment Lecture Mode and Case
Suggested Readings
Text Books
Insurance and Risk Management
by P K Gupta, Himalaya Publishing House, Second Edition, 2010, Chapter 27
Session 16 Non-life Insurance: Marine Transit Insurance
Issues to be Discussed
Risks covered. Proposal forms. Policy conditions. Claims procedure and settlement. Basic idea about marine hull underwriting.
Treatment Lecture Mode and Case
Suggested Readings
Text Books
Insurance and Risk Management
by P K Gupta, Himalaya Publishing House, Second Edition, 2010, Chapter 25
Session 17 Non-life Insurance: Personal Accident Insurance
Issues to be Discussed
Importance of PA Policies, Risks covered. Proposal forms. Policy conditions. Claims procedure and settlement.
Treatment Lecture Mode and Case
Suggested Readings
Reading material will be provided
Session 18
Micro Insurance
Issues to be Discussed
IRDA Regulation, products, current scenario
Treatment Lecture Mode
Suggested Readings
Website of IRDA
Session 19
Presentation by Students (
Internal Evaluation
component
)
Session 20 Insurance Intermediaries
Issues to be Discussed
Distribution channel – Agents, corporate agents, bancassurance, mallassurance, shopassurance. Surveyors and Loss Assessors.
Treatment Lecture Mode and Case
Suggested Readings
Text Books
Insurance and Risk Management
by P K Gupta, Himalaya Publishing House, Second Edition, 2010, Chapter 39
Other Books for Reference:
Insurance Management – Text & Cases by S C Sahoo and S C Das, Himalaya, 2009 edition
Risk Management and Insurance. Trieschmann, Hoyt & Sommer, Thomson, 12th Edition
Risk Management & Insurance by Harrington & Niehaus, TATA McGraw-Hill
Legal aspects of Life Assurance by Insurance Institute of India
Miscellaneous Insurance (IC-78) by Insurance Institute of India
Practice of General Insurance by Insurance Institute of India
Applications of Life Assurance by Insurance Institute of India
Website Reference:
www.irdiaindia.org
www.lifeinscouncil.org
www.click2insure.in
www.irdajournal.com
www.roughnotes.com
www.marketresearch.com
www.iirmworld.org.in
www.ibm.com
www.insuremagic.com
Pre-reading
Each student has to make a pre-reading of the articles, cases, text from the suggested/referred books before coming to class. Student who fails to answer questions, on a repeated basis will loose points for class participation as such.
Quiz Test
There will be two quiz tests and both the quizzes will be taken without any prior intimation.
Project Assignment & Presentation
There will be a field-based project assignments on group basis.
Class Participation & industry updation
You are expected to read every day a financial newspaper and bring in your updated knowledge/information on insurance industry to the class room discussion. Apart from this, loads of information is also available on line and journals published by various institutions/organizations, which can be used by a student.
Points to Remember:
Before coming to class please read the chapters as indicated in the session plan.
Clear your doubts after the class so that you do not accumulate a lot of doubts.
Articles, cases and handouts would be given to you as and when required.
Meet the deadlines when given. Avoid asking for more time.
Do not carry mobile phones to the class.
Evaluation Components
Quizzes (2 Nos.) 10 %
Group Project Assignment & Presentation 20 %
Class Participation & industry updation 10 %
Mid Term Examination 20 %
End Term Examination 40 %
Created By:
Rajan Masih
on
03/18/2015
at
12:51 PM
Category
:
MBA-RM (2014-16)-T-4
Doctype
:
Document
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