Introduction: Man needs wealth as matter needs form. Money in fact is the fulcrum of our existence in these days of inevitable materialism. The income of fresh entrants into corporate sector has kept pace with or even outpaced development & resultant economic growth. Such wealth creation notwithstanding, there is a need for developing financial insecurity for managers through the novel system of insurance.
Course Objective: Unless financial security is provided through suitable instruments of insurance, uncertainty of life -premature death, disability, diseases, loss of or damage to property( moveable and immoveable) & liability suits - may result in drain of wealth. The course intends to acquaint the managers with all the risks associated with industry, commerce and personal risks & the ways of mitigating such losses.
By the end of the course, the student is expected to
1. Understand the broad spectrum of industrial, commercial & personal risks. 2. Develop a broad understanding of insurance as a system of managing personal risks of property, life as well as liability. 3. Appreciate the utility of various financial products providing financial security. 4. Utilize the knowledge gained to securitize life’s earnings -- past, present and future. Session- wise Course Outline
Module A. Risk Management & Insurance
1-2: Risk Management & Insurance
Risk, peril & hazard, types of risk, Insurance-purpose, need ,basic characteristics, subject matter; insurance as a social security tool, role of Insurance in nation building activities; adverse selection & hedging
Readings: Risk Management & insurance (Ch-1) by George E. Rejda
3-4 : Risk Management Process Meaning & objectives of risk management, Risk management process- personal & corporate risk management, corporate risk attitudes; Insurance as a method of risk transfer.
Readings: (i) Risk Management: Insurance Institute of India
(ii)Risk Management & insurance (Ch-1) by George E. Rejda
5. Enterprise Risk Management
Readings: Risk Management & Insurance: O.P. Gupta, HPH, 2010
Module B. Risk Management for Property Risks
6-7. Types of property exposed to fire risk, transit risk, accident & theft
Readings:www.irdaindia.org
Module C. Management of the risk of dying too early;
8-9: Risk of death, disability & disease
10-13. Need for life insurance, Human life value, Life Insurance products- term insurance, whole life, endowment, money back, ULIP,
Readings: Practice of life Insurance; Insurance institute of India
Module D. Managing the Risk of Living Too Long
14-15. Risk of old age: financial & health risks: Annuities & Pension
Readings: Pension & Reforms: IRDA Report 2001 from the book Insurance Products (including Pension Products) IIBF book page 232-245
Module E. Life & Health Actuarial Principles 16-17. Pricing Life insurance products Readings: Life & health insurance Actuarial Principles, Black & Skipper, PHI Page 693-718
18-19: Insurance regulatory Framework; Readings: www.irdaindia.org 20. Presentations
Evaluations: End Term: 40 marks; Presentations: 20, Term Paper 20, Quiz: 20 marks.
Created By: Debasis Mohanty on 11/28/2011 at 08:52 AM Category: PGDM-II Doctype: Document