PRINCIPLES OF INSURANCE

Course Code: Credit units: 02

Course Objective: This Course aims at familiarizing the participants with the Priniciples applicable to Life and General Insurance. Module I: The Conceptual Framework What Is Insurance Brief History of Insurance Perils and Risks Classification of Risks- Hazards How Insurance Works Classes of Insurance Assumptions Importance of Insurance Industry. Module II: The Business of Insurance Managing Risk - Retention Life Insurance Managing Insurance Funds of an Insurer Trustee- Reinsurance Role of Insurance in Economic Development Insurance and Social Security. Module III: The Insurance Contract Utmost Good Faith Insurable Interest Insurers Insurable Interest Criminal Acts Indemnity Subrogation and Contribution Proximate Cause Personal and NonPersonal Contracts Module IV: Insurance Products -Non life Insurance Non-Life Insurance Fire Loss of Profits Marine Marine Cargo Marine Hull Motor Miscellaneous Personal Accident Fidelity Guarantee Health Mediclaim Overseas Medical Liability Workmens Compensation Engineering Boiler and Pressure Plant Policies Aviation Industrial All Risks Oil and Gas Satellite Other Miscellaneous Insurances Burglary Loss of Baggage During Travel Householder Effects Shopkeepers Business Bankers Indemnity Horses Bees Cattle Plantations Etc. Module V: Insurance Products -Life Insurance- Survival Term Assurance Pure Endowment Whole Life Double Endowment Money Back or Anticipated Supplementary Benefits Riders Linked Policies Annuities Immediate Annuities Deferred Annuities Group Policies Master Policy Module VI: Insurance Terminology Common For Both Life and Non-Life Insurance Insurance Insurer Proposal Underwriter Premium Policy Endorsement Subject Matter of Insurance Sum Assured Term Conditions Precedent and Subsequent Claim Policyholder Premium Reserve Ceded Accepted Expense Ratios Loss Ratios Mortality Lloyds Protection and Indemnity Associations Warranties Representation Ex-Gratia Life Insurance First Premium Renewal Mode Limited Payment Policies Single Premium Convertible Days of Grace Lapse Paid Up Policy Revival Deferment Period Nomination Assignment Bonus With Profit Participating Non-Participating or Without Profit Surrender Value Non-Life Insurance Market Agreements Cover Notes Certificates of Insurance Open Policy Floater Excess Franchise Claims Salvage Coinsurance Loss Total Loss Actual or Constructive Loss Bonus Malus Replacement Valued Policy Agreed Value Full Value First Loss Increased Value Insurance Time or Institute Cargo Clauses Solatium Fund Hit and Run Cases Arbitration Module VII: The Insurance Market Life and Non-Life Insurers Reinsurers Individual and Corporate Agents Brokers Surveyors Medical Examiners Third Party Administrators Regulator IRDA Insurance Councils Ombudsmen Educational Institutes Councils Tariff Advisory Committee. Module VIII: Regulations The Insurance Act, 1938 Insurance Regulatory and Development Act, 1999 Life Insurance Corporation Act, 1956 General Insurance Business (Nationalization) Act, 1972 Consumer Protection Act, 1986 Income Tax Act Other Laws. Module IX: The Insurance Customer Customers Are Different Different Mind Sets, Their Satisfactions Ethical Behavior Risk Management Avoidance or Prevention Reduction Retention Transfer The Techniques, Separation Duplication Diversification Retention and The Individual.

Module X: Risk Management - Introduction- Retention and the Individual

Examination Scheme:
Components Weightage (%) P 10 CT 10 A 5 CP 5 EE 70

Text & References:

Principles of Insurance (III) Principles of Insurance Life, Health and Annuities (LOMA 280) Insurance companies ( LOMA 290)