Course

Unit 1

Risk Management and Introduction to Insurance: Concept of risk – meaning – types of risk – methods of handling risk – risk management process – Meaning of Insurance – functions – nature of insurance

– principles of insurance – essentials of a valid contract – Insurance contract – essentials of an insurance contract.

Unit 2

Life Insurance Contract: definition – essentials of life insurance contract – selection of risk –

Annuities – classification of annuities – sources of risk information.

Unit 3

Marine Insurance Contract: definition – procedure to effect marine insurance – elements of marine insurance – different classes of policies – policy conditions – description of various clauses.

Fire Insurance: Definition – causes of fire – prevention of loss – private activities and public activities

– fire insurance contract – various types of policies in fire insurance.

Unit 4

Miscellaneous insurance: Employer’s liability insurance – Employees State Insurance Act – Aviation insurance – Motor insurance – kinds of policies under motor insurance – Rural insurance and health insurance.

Unit 5

Insurance Legislation in India: Insurance Act 1938 – Marine Insurance Act 1968 – General Insurance Business (Nationalisation) Act, 1972 – IRDA Act.

Course Objective:

The objective of this course is to equip students with a thorough understanding of risk management and the fundamentals of insurance, encompassing various types of insurance contracts and provide a comprehensive knowledge of the principles and legal frameworks governing the insurance industry, including life, marine, fire, and miscellaneous insurance policies.

Course Outcomes:

The students will be able to:

CO1 – Understand different types of risks and apply appropriate risk management methods and principles of insurance to formulate effective risk management strategies.

CO2 – Explain the essentials of life insurance contracts.

CO3 – Understand the comprehensive marine and fire insurance policies and various clauses associated with this insurance.

CO4 – Distinguish between different types of miscellaneous insurance policies, including employer’s

liability, aviation, motor, rural, and health insurance.

CO5 – Understand the main legislative acts governing the insurance sector in India.

Textbooks:

1. N. Mishra, S. B. Mishra – Insurance Principles and Practice – S. Chand and Company
2. Mark Dorfman – Introduction to Risk Management and Insurance – Prentice Hall of India.
3. Nalini Prava Tripathy, Prabir Pal – Insurance Theory and Practice – Prentice Hall of

References:

1. E. Rejda – Principles of Risk Management and Insurance – Pearson Education.
2. N. Mishra – Modern Concepts of Insurance – S. Chand and Company Ltd.
3. Neelam C Gulati – Principles of insurance Management – Excel