INSURANCE SERVICES

Instruction 3 hours per week

Duration of Semester End Examination 3 Hours
Semester End Examination 70 Marks
Continuous Internal Evaluation 30 Marks
Credits 3

Course Objectives: The Objectives of the course are:

1. To give an Overview of Insurance Industry and Educate on Principles of Insurance.
2. To provide an insight on classification of insurance and Regulatory framework of Life Insurance.
3. To enlighten the students on Life insurance and General Insurance.

Course Outcomes: After completion of the course, student will be able to:
1. Understand basic concepts of Insurance, Principles and classification of Insurance
2. Enrich their knowledge on Insurance and develop their specialties in the field of
Insurance
3. Develop a clear understanding and knowledge about of Life Insurance, General Insurance
and Marketing Channels.

Unit – I
Introduction to Insurance:
Introduction to Insurance: Definition, terminology of insurance: Bound, Insurer Insured,
Premium, Policy, and Exposure to loss. Functions of Insurance -Primary Functions and
Secondary Functions. Evolution of Insurance, Reforms in the Indian Insurance Sector. Role and
Importance of Insurance. Principles of Insurance. Benefits of Insurance.

Unit – II
Classification of Insurance:
Life Insurance - Classification: Marine Insurance, Fire Insurance, Aviation Insurance, Motor
Insurance. Reinsurance –Features, uses and advantages, Types of Reinsurance. Role of insurance
in financial System. Legal aspects of Insurance Contract, BANC -ASSURANCE

Unit – III
Regulatory Framework of Life Insurance
Functions of Insurers: pricing of insurance-pricing elements Production, Underwriting-process
methods of rate determination types of Underwriters, Rate Making-types of Rating methods,
calculation of premium and classification, Managing Claims and Losses, Types of Insurers, An
overview of IRDA.

Unit – IV
Life Insurance
The Concept of Life Insurance – Features, Classification of Life Insurance Policies based on
Duration, Premium Payment, Participation in profit, Number of Lives covered, Methods of
Payment of Claims amount and Non – conventional Policies. Life insurance products – Types,
Tax treatment of Life Insurance. Actuarial science - concept and Responsibilities, provisions of
life insurance.
Unit – V
General Insurance
General Insurance: Concept, Types - Health and accident, Automobile, Business, Credit,
Aviation, Causality, Travel and Crop Insurance. Marketing Channels - Agents and Brokers
Professionalism, Remuneration, Responsibilities, Classification, Criteria for Appointment and
Capital adequacy norms for broker.

Text Books:

1. Emmett J. Vaughan & Therese M. Vaughan, Fundamentals of Risk & Insurance, Wiley,
India Edition, 11th Edition 2013.
2. Mishra M.N., Life Insurance, Administration and Management, Sultan Chand & Co.,
New Delhi, 22nd Edition, 2016.
3. Jyotsna sethi, Nishant Bhatia Elements of Banking and Insurance, PHI second Edition
2012.

Suggested Readings:

1. H. Narayanan ,Indian Insurance – A Profile , Jaico Publishing House, 1st edition, 2008.
2. S. Arunajatesan, T.R. Viswanathan ,Risk Management & Insurance,MacMillan,2009
3. Mark. S.Dorfman, Introduction to Risk Management & Insurance, Prentice-Hall of India
Private Limited, 10th Edition 2012.