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IARM-X05
(ExPGP 2005-08 : Term-IX)

Insurance & Risk Management
(Faculty: Prof. Chandan K. Parhi)

COURSE OUTLINE

Course Objective: The insurance sector has come a full circle during last 25 years. From private to the public regime and back to private regime has indeed been a long, arduous road for insurance sector. Though insurance sector as such has not been privatized and only some private players have been allowed to operate in this sector, last couple of years has witnessed tremendous growth, mainly propelled by the private players. This course primarily tries to capture the essence of general insurance as a system of business, a mechanism of transfer of risk and as a contract. It aims at a broader understanding of the products in general insurance sector. By the end of the course, the students is expected to
1. To understand the risk management process
    2. To develop a broad understanding of the various products of general & life insurance sector
3. To understand the operations of insurance companies
4 Appreciate the needs for & consequences of liberalization of insurance sector
Session Details :
Session
Topic
Issues to be Discussed
    Reading Material/
    Assignments

    1
    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;
      Discussion: ONGC platform fire
          2
          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.
            Discussion: Dimensions of personal risk-
            Nithari Killings

            3
            Insurance Contract; Fundamental Principles of insurance
            Features Features of contract, special features of insurance contract,Insurable Interest, Utmost good faith, Material fact and proximate cause Indemnity, Subrogation, Contribution




            4
              Insurance Legislations


              Law in insurance-relevance, major legislations- Insurance Act, 1938;
              Life Insurance Nationalization Act, 1956, General Insurance Business Nationalization Act, 1972 IRDA Act, 1999. Liberalization of insurance sector, new players, growth in premium
                Regulations under IRDA Act

                5
                General Insurance
                Classification of general insurance - fire, marine & miscellaneous



                6
                  Select general insurance covers-motor Personal Accident, Health Insurance- coverage, managed medical care, T.P.A.s, bonus, malus, liability policies
                    Various non- life policies of private players

                    7
                    Life Insurance
                      Need for life insurance, Human Life Value,
                      Life Insurance products- term insurance, whole life, endowment, money back, ULIP, Pension policies, Annuities, Insurance documents-proposal, Premium- concept, computation, rebates, riders, extras; Policy conditions- days of grace, non –forfeiture options, nomination, assignment, alteration; paid up value, surrender value, underwriting
                        Money back policies-A closer look Unbeaten ULIP
                        Assessing Human life Value

                        8
                        Insurance Market Today
                          Insurance pricing, factors of rating- fire, motor, marine, workmen’s compensation. & Public liability, product development;
                            Competition yet to touch the pricing arena
                              Compulsory readings:
                              1. Hand outs
                              Reference Books :
                                IC 01 Principles of Insurance; Insurance Institute of India Publication
                                IC 22 Life Insurance under writing -D0-
                                IC 25 Life Insurance Management -do-
                                IC 12 Insurance Business Environment -do-
                                IC 86 Risk Management -do-
                                Risk Management & Insurance Thomson
                                Principles of Risk Management and Insurance (Pearson
                                Asia Insurance Post Monthly
                                Web sites
                                www.asiainsurancepost.com
                                www.irdaindia.org

                                Created By: Bijoy Kar on 12/06/2007 at 04:26 PM
                                Category: ExPGP-III Doctype: Document

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