Seat No.: ________ Enrolment No.

___________

GUJARAT TECHNOLOGICAL UNIVERSITY

MBA – SEMESTER III – EXAMINATION – WINTER 2019
Subject Code: 4539223 Date:05/12/2019
Subject Name: Insurance & Risk Management
Time:10.30 AM TO 01.30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.

Marks
Q.1 Explain the following: (2 marks each) 14
(a) Loss Frequency
(b) Underwriting
(c) Fire Insurance
(d) Insurance
(e) Life Insurance
(f) Non-Life Insurance
(g) Term Policy

Q.2 (a) Define Risk? Explain the classification of Risk in detail. 07

(b) Explain various kinds of policies in Life Insurance. 07
Or
Q.2 (b) Explain the risk management process. 07
Q.3 (a) Explain the principles of Insurance in detail. 07
(b) What is the role of IRDA in insurance? 07
Or
Q.3 (a) What is the importance of risk management for all people? 07
Q.3 (b) What is insurance? How is it different from hedging? 07
Q.4 (a) Explain Fire Insurance? Features of fire insurance. 07
(b) What is the financial aspect of insurance companies? 07
Or
Q.4 (a) Throw some light on underwriting of life insurance and non-life 07
insurance.
Q.4 (b) What is reinsurance? What are the techniques of Reinsurance? 07

Page 1 of 2
Q.5 Read the following case and answer: “Mr. X took a policy in February 2008.
He died within two years, in August 2009. The insurer investigated the claim
and found that he had consulted a doctor, and had taken medicine on various
occasions in 2006, 2007 and 2008. In the proposal for the question: Have you
within the past five years consulted any medical man for any ailment not
necessarily confining to your house? The response gien was ‘NO’. The insurer
repudiated the claim alleging that the inssured had deliberately suppressed
facts about his illness which was a material fact. When the issue was taken to
court, the insurer could prove that the insured had been taking medicines and
injections but not that he was suffering from any particular disease. The doctor
who gave evidence about the medicines taken also stated ‘the diseased was
usually of neurasthenic type, that his condition was almost normal.
Occasionally took medicines from him and used to make much fuss about even
small ailments, and he would be quite upset over such small ailments.’ The
judgment was in favour of the claiment.” Hyperchondria: an abnormal
condition characterized by a depressed emotional state and imaginary ill
health, referable to the physical condition of the body or one of its parts.

(a) Is it a case of non-disclosure of material facts by the insured? Explain the 07

principles of insurance.
(b) If yes, what made the Court to decide the case in favour of the insured? 07
Or
Q.5 (a) What is the benefit of taking insurance? 07

(b) Discuss the claim settlement procedure along with required documents 07
in Life Insurance.
a. Maturity of Policy
b. Death of insured person

*************

Page 2 of 2
Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY

MBA – SEMESTER - 3 - EXAMINATION – SUMMER 2021

Subject Code: 4539223 Date: 21/08/2021

Subject Name: Insurance and Risk Management
Time:02:30 PM TO 05:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1 Explain the Following Terms 14
[1]. Perils
[2]. Hazards
[3]. Risk Transfer
[4]. Persistency Ratio
[5]. ALM
[6]. Micro-health insurance
[7]. Insurable Risk

Q.2 (a) Explain Meaning and Types of Risk 07

(b) Discuss in detail Various Principles of Insurance 07

OR

(b) Describe in detail the process of Risk Management 07

Q.3 (a) What is Life Insurance? Explain various types of Life Insurance plans. 07

(b) What is Fire insurance? Discuss various Features of Fire insurance contract 07

OR

Q.3 (a) Define Marine Insurance. Explain various types of Marine insurance Policies 07

(b) Discuss different types of claims and the procedure to settle those claims. 07

Q.4 (a) What is Reinsurance? Discuss various techniques of Reinsurance 07

(b) “Underwriting is the heart of insurance Operations” Explain the statement in detail 07

OR

Q.4 (a) What are the responsibilities of the Insurance Manager? 07

(b) Discuss various Financial Objectives of Insurance Company 07

Page 1 of 2
 Q.5 Case Study – Answer the Following Question
Reliance General Insurance to focus on Fire, Engineering and Marine
Reliance General Insurance is focusing more on fire, engineering and marine insurance
segments as part of its plan to diversify product basket and achieve profitable growth, a top
company official said. “We are focusing on commercial lines, fire, engineering and marine
insurance, which are still untapped and more profitable than traditional segments. We are
trying to grow these portfolios this fiscal,” Reliance General Insurance Chief Executive Rakesh
Jain said. As per the company, while fire insurance accounts for 8 per cent of its total business,
engineering segment contributes around 4 per cent, marine 2 per cent and others including
commercial lines account for 6 per cent. Jain also said the company is reducing its dependence
on motor insurance segment and plans to bring it down to below 60 per cent by the end of this
financial year. “Our aim is to expand our presence in fire and engineering segments and
increase their business contributions in the next couple of years,” he said, adding the company
plans to increase health insurance contribution to 20 per cent from present 16 per cent. The
general insurer also aims to come up with sector specific insurance products. “We are planning
to devise sector-wise insurance schemes. We are in touch with people in cement, IT and power
sectors and are working to create a more risk-based approach for different sectors,” Jain said.
Reliance General, which is part of Reliance Capital, has posted 25 per cent increase in gross
written premium to Rs. 706 crore in the June quarter.
Q.5 (a) Does Reliance General Insurance’s Current Business Strategy suitable to current 07

market situation?

(b) Does Expansion strategy of the Company works in real life? Explain your answer 07

OR
Q.5 (a) Company’s reduction in the motor insurance segment will be suitable for the future 07

business growth? Justify

(b) “Sector specific insurance products” Strategy is good or bad? Justify your answer 07

*************

Page 2 of 2
Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY

MBA - SEMESTER–III EXAMINATION – WINTER 2020 (Special)
Subject Code: 4539223 Date: 09/08/2021
Subject Name: Insurance and Risk Management (IRM)
Time: 10:30 AM TO 12.30 PM Total Marks: 47
Instructions:
1. Attempt any THREE questions from Q1 to Q6.
2. Q7 is compulsory.
3. Make suitable assumptions wherever necessary.
4. Figures to the right indicate full marks.
Q. No. Question Text and Description Mark
s
Q.1 (a) Definitions the following terms. 06
(a) Perils
(b) Static Risk
(c) Indemnity
Q.1 (b) Definitions the following terms. 06
(a) Proximate Cause
(b) Co-insurance
(c) Whole life Plan
Q.2 (a) Define the Risk management. Discuss various methods to manage 06
the risks.
(b) Insurance is becoming necessities. There are some needs and 06
economic importance of insurance. Discuss it.
Q.3 (a) List the various Principles of Insurance and discuss them in detail. 06
(b) Life insurance is essential for breadearner. Discuss various 06
benefits of Life Insurance Policy.
Q.4 (a) Discuss various contractual provisions for Life Insurance. 06
(b) According to the features of policy, Fire insurance policy 06
gives various benefits. Discuss various types of Fire
Insurance Policy.
Q.5 (a) Define the Marine Insurance. Discuss various types of 06
Marine Insurance Policies along with the Principles in
Marine Insurance Contract.
(b) Various factors are considered while deciding the insurance 06
premium. Discuss the various parameters that decide the
premium for Auto Insurance.
Q.6 (a) Discuss various methods of rating for deciding the prices of 06
Insurance Product.
(b) Reinsurance is essential part of Insurance Industry. Discuss 06
various functions and challenges for Reinsurance.

Page 1 of 2
Q.7 CASE STUDY:

Tata AIG Life Insurance told to pay

Rs 2.5 lakh
The district consumer disputes redressal forum ordered an
insurance company to pay a complainant Rs 2.5 lakh for her
treatment of a cardiac ailment.

The insurance company was rejecting her claim saying that the
illness for which she was treated was not covered under the policy.

The woman had purchased a 'health first' insurance policy from

Tata AIG Life Insurance Company Limited, valid for a period of
13 years, from January 9, 2004, to January 9, 2017.

As per the policy, the insurance company had to pay the

complainant's hospital and medicine expenses, in case of a serious
ailment. The policy amount was Rs 5 lakh. In July 2005, the
woman felt pain in cardiac region and consulted several doctors for
treatment, even in Mumbai. In October 2005, the woman was given
a permanent pace maker by doctors. She was admitted in a hospital
in Mumbai for treatment. The treatment cost her Rs 4.5 lakh and
she filed a mediclaim with the insurance company.

The insurance company paid her Rs 1,500 only, for being admitted
in the hospital for three days, at Rs 500 per day, as was defined in
the policy. The company denied paying other expenses saying her
illness was not a 'critical illness'.

After being taken for a ride by the insurance company, the

aggrieved woman filed her complaint with the consumer forum.

The company confessed that it had rejected her claim because the
illness for which she was treated was not covered under the said
policy. The illness necessitating a permanent pace maker was also
not specified in the policy taken by the woman.
The critical illness cover promised the woman 'a lump sum
payment of up to Rs 5 lakh' in case she was diagnosed with a
critical illness.

The policy further said that it will ensure that woman has access to
the most technologically advanced treatment, and can pay for
medicine related costs and other recuperation costs.
(a) Why TATA AIG has been penalized for Rs. 2.5 lacs? Do you 5.5
think it is valid? Why?
(b) What is the core concept of the case? Discuss it along with 5.5
various types of claim.
OR
Q.7 (a) Why did the Policy holder file the complain? Do you think 5.5
that it is right way? Why?
(b) What are the reasons for disputes in claim? Discuss various 5.5
reasons for rejection of claim

*************

Page 2 of 2
Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY

MBA - SEMESTER– III EXAMINATION – WINTER 2020
Subject Code:4539223 Date:07/01/2021
Subject Name:Specialization-Finance_Insurance and Risk Management
(IRM)
Time:10:30 AM TO 12.30 PM Total Marks: 47
Instructions:
1. Attempt any THREE questions from Q1 to Q6.
2. Q7 is compulsory.
3. Make suitable assumptions wherever necessary.
4. Figures to the right indicate full marks.

Q.1 Explanation: 06
(a) (a) Peril
(b) Dynamic Risk
(c) Insurable Risk

(b) (a) Scenario measures 06

(b) Arbitration and average
(c) Micro-health insurance

Q.2 (a) Define insurance. Explain different types of Insurance. Explain 06

insurance Social and Economic benefits to the insurance company.
(b) Explain basic Principles of insurance with suitable example. 06

Q.3 (a) Elaborate concept of underwriting. Which are requisites of good 06

insurance in detail.
underwriting?
(b) Which points should be considered at the time of claim settlement of 06
fire insurance policy? Elaborate all points in detail.

Q.4 (a) Define: TPA’s. At time of claim evaluation and settlement judgment 06
given by TPA’s is consider as final. Do you agree with this statement?
Justify it.
(b) To secure and procure health one must have health insurance policy. 06
Support your answer with Jeevan Aastha and Jeevan deep policy.
Q.5 (a) To evaluate insurance company financial performance, being an 06
evaluator which financial ratios will consider by you. Support your
answer with hypothetical figures relating to ratios.
(b) Write detail note on IRDA as a controlling mechanism for insurance 06
company.

Q.6 (a) What is reinsurance? Analysis role of Re-insurers any two techniques 06
of reinsurance in detail.
(b) “In GLOCAL time insurance industry faces many issues and challenges 06
for development.” Do you agree with this statement?

1
Q.7 Mr. Kabir takes out a fire policy on his house valued at Rs. 24 lakhs
with two insurance companies. He insures it for Rs.12 lakhs with each
company. When the house is partially damaged in a fire, the loss is
estimated at Rs. 6 lakhs. He claims Rs. 6 lakhs each from the two
insurers.
Kindly justify following.

(a) Shown your calculation for each company’s claim amount to the Mr. 5.5
Kabir.
(b) In above case is TPA’s needed? Justify your answer with TPA’s 5.5
agreement with insurance company.
OR
Mr. Rajveer, while riding a horse, fell on the ground and had his leg
broken, he was lying on the wet ground for a long time before he was
taken to hospital. Because of lying on the wet ground, he had fever that
developed into pneumonia, finally dying of this cause.
Q.7 (a) Which principle of insurance is applicable in above case? Justify your 5.5
answer with logical reasoning.
(b) Which claim will receive by the family member on behalf of Mr. 5.5
Rajveer?