UNIVERSITY OF THE PUNJAB, LAHORE

COURSE OUTLINE
Name of the Instructor: Dr. Nisar Ahmad
Designation: Assistant Professor
Email Address: nisar@hcc.edu.pk
Program M.COM
Name of the Course Insurance and Risk Management
Course Number MC-603
Credit Hours 3: Three Hours Per Week
Category Compulsory
This course is primarily aimed to provide an initial perspective on risk
management and insurance businesses, its principal activities, and the
interrelationship among the activities. To familiarize the students about risk
Aims and Objectives management process and to have good understanding of insurance business
operations, fundamental principles of insurance, elements of insurance contract
and the relevant laws is also the purpose of this course.
It is prerequisite for the participants of this course to have understanding of
Course Pre- business economics, accounting and finance. They are also presumed to have
requisites basic knowledge about the statistical tools and techniques which are required
for assessing, measuring and evaluating the risk.
MID TERM COURSE (Total Lectures 24 )
No. of
Course Contents Lectures/Topic

Main Topic 1: Introduction of risk

Sub- Topics
➢ Meaning of risk 01
➢ Basic categories of risk 01
➢ Types of pure risk 01
➢ Burden of risk

Main Topic 2: Introduction of risk management process

Sub- Topics
➢ Meaning and objectives of risk management
➢ Steps in risk management process 01
➢ Selection of appropriate techniques 02
➢ Benefits of risk managements 02
➢ Personal risk management 01
➢ Self-Insurance

Main Topic 3: Introduction of Insurance

Sub- Topics
➢ Characteristics of insurance 01
➢ Requirements of insurable risk 01
➢ Insurance, gambling and hedging
02
➢ Types of insurance
➢ Benefits and cost of insurance to society. 02
Main Topic 4: Fundamental Legal Principles of Insurance
Sub- Topics 01
➢ Principle of indemnity 01
➢ Principle of insurable interest 01
➢ Principle of subrogation 02
➢ b. Principle of utmost good faith

Main Topic 5: Requirements of Insurance Contract

Sub- Topics 02
➢ Distinct legal characteristics of insurance contracts 01
➢ Law and insurance agent.
Final Term Course (24 Lectures)
Main Topic 6: Insurance Company Operations
Sub- Topics
➢ Rate making 01
➢ Under writing 02
➢ Production 01
➢ Claim settlement
Main Topic 7: Reinsurance
Sub- Topics
➢ Meaning and detail of reinsurance process 01
➢ Investment modes of insurer 02
Main Topic 8: Analysis of Insurance Contract
Sub- Topics
02
➢ Basic parts of insurance contract
➢ Definition of insured 01
➢ Endorsement & riders 01
Main Topic 9: Deductibles in Insurance
Sub- Topics
➢ Insurance policy without deductible
➢ Insurance policy with deductible 01
➢ Calculation of claim with above policy 01
➢ Co-insurance 01
➢ Other insurance provisions

Main Topic 10: Classes of Insurance

Sub-Topics
➢ Life insurance ,Ordinary, whole life & endorsement policy 01
➢ Fire insurance 01
➢ Property insurance
➢ Liability insurance 01
 ➢ Marine insurance 01
➢ Credit and surety insurance 01
01

Main Topic 11: Islamic Insurance ( Takaful)

Sub-Topics
➢ Introduction 01
➢ Difference between conventional & Takaful 01
➢ Activity models of Takaful
➢ Potential of Takaful in Pakistan 01

Vivavoce / presentation 04

Text Book Prescribed Principles of Risk Management and insurance by George E. Rejda. 12th edition

Recommended Books 1. Introduction to Risk Management and Insurance by Mark

Dorfman, David Cather, 10th Edition
2. Introduction to Insurance: Julia Holyoake
3. Insurance principles of practices: M.N Mishra, S.B Mishra
Assignment Topics: Group assignment will be given to students for studying, analyzing and
evaluating the following financial decisions in corporate sector.
➢ Risk management process
➢ Life insurance
➢ Ordinary, whole life & endorsement policy
➢ Fire insurance
➢ Property insurance
➢ Liability insurance
➢ Marine insurance
➢ Credit and surety insurance
➢ Islamic Insurance

Quizzes: Quiz: From any topic of midterm or final term course

Additional Resources: Websites recommended to the students during the semester in order to enhance
intellectual and professional growth of the students.
https://www.edurisksolutions.org/
https://www.irmi.com/
http://www.statelife.com.pk
http://journalofriskandinsurance.smeal.psu.edu/
➢ Lectures.
Teaching Strategies ➢ Handouts (attach hard or soft copies).

Sessional Mid-Term Final Examination

25 % 35 % 40 %
Assessment Criteria
Quizzes and Test Paper (1 hour
Paper (2 hours)
(5%), Assignment and 30 minutes)
 and Presentations
(10%), Attendance,
Class Participations
and discipline (10%)
Recommendations

Weekly Lesson Plan

Week Topic Covered Objective/ Outcome
• INTRODUCTION OF RISK To acquaint students with
a. Meaning of risk the meanings of risk and
b. Basic categories of risk various types risk.
c. Types of pure risk Student can define the
1st WEEK
d. Types of speculative risk risk and can make
e. Burden of risk distinction between
insurable and no
insurable risk
• INTROUCTION TO RISK MANAGEMENT To identify, analyze and
a. Meaning and objectives of risk management categorize various loss
2nd WEEK
b. Steps in risk management process. exposures and

c. Selection of appropriate techniques To recommend suitable

d. Benefits of risk managements techniques for the
3rd WEEK
e. Personal risk management coverage of loss
f. Self-insurance exposure
• INTRODUCTION OF INSURANCE To make qualitative
a. Characteristics of insurance analysis of risk and to
4th WEEK b. Requirements of insurable risk distinguish between
c. Insurance, gambling and hedging insurable and non-
insurable risk.
To familiarize with
a. Types of insurance various types of
5th WEEK
b. Benefits and cost of insurance to society insurance and their
importance.
• FUNDAMENTAL LEGAL PRINCIPLES To acquaint students with
6th WEEK a. Principle of indemnity basic fundamental legal
b. Principle of insurable interest principles regarding
a. Principle of subrogation insurance contract.
7th WEEK b. Principle of utmost good faith
• REQUIREMENT OF INSURANCE CONTRACT To understand the legal
8th WEEK a. Distinct legal characteristics of insurance contracts requirements of valid
b. Law and insurance agent insurance contract
• INSURANCE COMPANY OPERATIONS To have knowledge
a. Rate making about insurance
9th WEEK b. Under writing operations
c. Production
d. Claim settlement
 • REINSURANCE To the knowledge
a. Meaning and detail of reinsurance process regarding the importance
10th WEEK
b. Investment modes of insurer and process of
reinsurance.
• ANALYSIS OF INSURANCE CONTRACT To understand the rights
a. Basic parts of insurance contract and obligations of
11th WEEK b. Definition of insured insured and insurer.
c. Endorsement & riders

• DEDUCTIBLES IN INSURANCE To understand the

a. Insurance policy without deductible application of deductibles
b. Insurance policy with deductible against insurance claims.
12th WEEK
c. Calculation of claim with above policy
d. Co-insurance
e. Other insurance provisions
• CLASSES OF INSURANCE To have knowledge
a. Life insurance about specific legal
b. Ordinary, whole life & endorsement policy provisions regarding
13th and
c. Fire insurance various classes of
14th
d. Property insurance insurance.
WEEK
e. Liability insurance
f. Marine insurance
g. Credit and surety insurance
• ISLAMIC INSURANCE (TAKAFUL) To have knowledge
a. Introduction about salient features of
b. Difference between conventional & Takaful Islamic insurance
15th WEEK c. Activity models of Takaful contract
d. Potential of Takaful in Pakistan

Vivavoce or Presentation of Project/ Assignment Practical assignment

impart them with
16th WEEK Knowledge of actual
Practice of Insurance