SMR 3.

F1 PPI
MOD NO.

PRINCIPLES AND PRACTICES OF INSURANCE

DETAILED SYLLABUS TEACHING HOURS OBJECTIVE OF THE MODULE

Credits: 3
TEACHING METHODOLOGY

Introduction: Insurance- Functional & Contractual Definition, Primary & Secondary Functions, Nature & Characteristics, Risks, Peril & Hazards, Types of Hazards, Purpose and Need Summary of Insurance as a Financial Service. Analyzing the General and Special Aspects of Insurance Contract, Types of Insurance Organizations Principles and Practices of Life Insurance: Life Insurance Organization and the Role of Intermediaries, Necessity of an Agent and the Challenges of Insurance Marketing, the Gamut of Life Insurance Products, Assurances and Annuities, Riders, Add-ons, Options and Alterations, with and without Profit, Characteristics and Ranges of Group Insurance Products. Pricing of Life Insurance Products on Actuarial Considerations: Mortality Tables and their Types, Value Equation and Cash Flow Approaches, Expenses Involved in life Insurance Business, Types of Premium and Premium Calculations. Principles and Practices of General Insurance: Relevant Acts and Statutes, Structure of GIC and its Subsidiary Companies, Roles and importance of IRDA, Agents, Intermediaries, Tariff Advisory Committee and Loss Prevention Association of India. Proposal Forms, Cover Notes, Certificates of Insurance, Policy Forms, Endorsements, Interpretation of Policies, Co-insurance, Renewal Notices. Fire and Marine Coverage- Various Provisions, Motor Insurance, Third Party and No-fault Liabilities, Personal Accidents and Mediclaim Policies Terms and Conditions, Burglary, Legal Liability, Fidelity Guarantee, Aviation, Engineering, Industrial all Risks, Project and Advanced Loss of Profit, Oil and Gas and Satellite Insurance.

10

12

Re-insurance: Fundamentals, Nature and Functions, Facultative, Treaty, Facultative Obligatory Treaty, Surplus, Quota Share, Proportional, Excess of Loss and Stop Loss Treaties. Fundamentals of Enterprise Risk Management: Concepts of Risk and Uncertainty, Types of Risks, Attitude to Risks, Costs of Risks, Identification, Evaluation and Control of Risks, Risk Transfer and Insurance. Strategic Practices of Insurance Marketing: Concepts of Service Marketing and the Nature of Insurance Market, Marketing Process and the Critical Success Factors of Insurance Market, Insurance Distribution Channels, Marketing Strategies of Major Insurance Players in India, Methods of Prospecting, Planned Prospecting, Pre-approach, Approach and Types of Approach. Total Credits

48 hours

Recommended books: I. Modern concepts of insurance by M.N.Mishra, S.Chand and Co. II. Risk management and insurance by Scott E Harrington and Gregory R Nichus, TMH III. Insurance and Risk management by Dr. P.K.Gupta, Himalaya publishing IV. Study materials of the Insurance Institutes of India: IC- 01, 02, 11, 85, 86, 88 and 92.