XAVIER INSTITUTE OF MANAGEMENT

                                  PGDM (RM SESSION PLAN- (2008-10)

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                    Course name: Insurance & Risk Management (IARM)

                             Course Advisor: Prof. Chandan Kumar Parhi

Course Objective: The insurance sector has come a full circle during last 25 years. From private
to the public regime and back to private regime has indeed been a long, arduous road for
insurance sector. Though insurance sector as such has not been privatized and only some private
players have been allowed to operate in this sector, last couple of years has witnessed tremendous
growth, mainly propelled by the private players. This course primarily tries to capture the essence
of general insurance as a system of business, a mechanism of transfer of risk and as a contract. It
aims at a broader understanding of the products in general insurance sector. By the end of the
course, the students is expected to
  1. To understand the risk management process
  2. To develop a broad understanding of the various products of general insurance sector
  3. To understand the operations of insurance companies
  4 Appreciate the needs for & consequences of liberalization of insurance sector
Session Details :
                                                                               Reading Material/
Session Topic            Issues to be Discussed
                         Risk, peril & hazard, types of risk, Insurance-
          Risk           purpose, need ,basic characteristics, subject          Discussion: ONGC platform
1 -3      Management     matter; , insurance as a social security tool, role   fire
          & Insurance    of Insurance in nation building activities; adverse
                         selection & hedging;
                         Objectives of risk management, Risk management
                         process- personal & corporate risk management,        Discussion: Dimensions of
4         Management
                         corporate risk attitudes; Insurance as a method of    personal risk-Nithari Killings
                         risk transfer.
                Features Features of contract, special features of insurance
                          contract, Insurable Interest, Utmost good faith,
 5 &6                     Material fact and proximate cause Indemnity,
                          Subrogation, Contribution

                         Law in insurance-relevance, major legislations-
                         Insurance Act, 1938;
                         Life Insurance Nationalization Act, 1956, General      Regulations under IRDA
7-9       Legislations
                         Insurance Business Nationalization Act, 1972          Act
                         IRDA Act, 1999. Liberalization of insurance sector,
                         new players, growth in
          Insurance    Insurance pricing, factors of rating- fire, motor,      Competition yet to touch
          Market Today marine, workmen’s compensation. & Public                the pricing arena
                        liability, product development;
         General        Classification of insurance covers-Fire, Marine,      Film Insurance & Financing
12       Insurance      Motor, Miscellaneous: various select general          in India
                        insurances                                            ICFAI Cases p125-130
                       Fire: Standard Fire& Special Perils Policy-
                       Coverage, Conditions, Exclusions, Declaration and
                       floating policies
                        Marine insurance: Maritime Perils, Warranties-
                                                                              Claims for Loss to property:
         Fire & Marine Express and implied;, The scope of cover in
13-14                                                                         Genuine or fraudulent?
         Insurance     Clause A,B and C Covers, General exclusions,
                                                                              ICFAI Cases p135-136
                       Marine Cargo open cover and specific Cargo
                       Policy, Significance of Marine Cargo Insurance in
                       International Trade. Marine Hull Policies

                        Need for life insurance, age- calculation & proof
                        Insurance documents-proposal, ACR, MHR,
         Life           medical reports, policy bond; Actuarial valuation-
15-18    Insurance:                                                           Assessing Human life Value
                        surplus, bonus, types of bonus. Various products
                        of life insurers

                        Health insurance and Medicare: Basic and
                        complete Plans, Schedule and relative value
                        approaches, Major medical insurance, Deductibles Liability Insurance: Personal
19                      and exclusions, Long-term care and disability injury Claims.
                        benefit, Individual and group medical insurances, ICFAI Cases p152-153
                        Managed medical care

         Other           Personal Accident, Burglary, Overseas Mediclaim
                                                                              Assessing loss due to theft:
20       Insurance
                                                                              ICFAI Cases p133-134

Compulsory readings:
                      1. Principles of Risk Management and Insurance       (Pearson)
Reference Books :

IC01 Principles of Insurance              Insurance Institute of India Publication
IC02 Practice of life Insurance           Insurance Institute of India Publication
IC12 Insurance Business Environment                  -do-
IC86 Risk Management                                 -do-
      Risk Management & Insurance                Thomson publication
      Asia Insurance Post                         Monthly journal
     Case studies in Insurance      ICFAI Center for Management Research
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