Lal Bahadur Shastri Institute of Management, New Delhi

Two Year Full Time Post Graduate Programme in Management (Finance)

TRIMESTER V
Course Code: 225127

Course Title: Insurance and Risk Management

Academic Session: 2013-14

Faculty :

Dr. (Prof.) S. S. Parmar

COURSE OBJECTIVE
The objective of this course is to introduce the student to both the theory and applications of
Insurance and Risk Management. The subject will give an in-depth insight into the insurance
areas like Life, Health, Auto, Accident, Reinsurance and managerial control of insurable assets.
Emphasis will be put on development of techniques that are part of the tool kit of those
interested in becoming insurance professionals and/or researchers in insurance. The emphasis is
laid on insurance as a means of dissipating and disseminating risk in insurance management.
COURSE CONTENTS
Module

Session

Topic/Reading

1. Introduction
To Insurance

Importance of Insurance, Nature of Insurable Risks,

Insurance Needs Analysis, Methods of Need Analysis,
Classification of Insurance, Risks in Insurance

2. Principles of
an Insurance
Contract

2-3

Essentials of an Insurance Contract, Difference between an

Insurance Contract and a Wager Contract, History of
Insurance contracts, Development of Insurance in India. PSU
and Private Sector Insurance Companies in India

3. Life
Insurance

4-7

Principles of Life Insurance, Mortality Tables, Construction of

Mortality Tables, Premium and Bonus, Life Insurance
Products, Policy conditions, Portability, Pricing of Life
Insurance Plans, Underwriting, Medical Records and Risks in
Life Insurance.
ULIP and Whole Life Plans, Annuity and Pension Plans,
Settlement of Claims, LIC of India and Private Sector Life
Insurance Companies in India. Pension Plans in India. Life
Insurance Sales and Rebating.

Module

Session

Topic/Reading
Health Insurance Plans in India, different Health Insurance
Schemes for Elder Citizens, Group Health Insurance, Third
Party Administrator TPA and HMO, Portability, Policy
Conditions, Pricing of Health Insurance Plans, Deductibles,
Underwriting, Medical Claims Administration, Medical
Records and Risks in Health Insurance, Critical Illness
Insurance, PSU and Private Sector General Insurance
Companies in India. Health Insurance Sales and Rebating.

4. General
InsuranceHealth
Insurance

8-10

5. General
InsuranceAccident and
Auto Insurance

11-12

Accident Policy and Accident Insurance. Auto Insurance in

India, Third Party Auto Insurance, Comprehensive Auto
Insurance, Portability, Policy Conditions, Pricing of Auto
Insurance Plans, Deductibles, Underwriting, Auto Claims
Administration Risks in Auto Insurance, PSU and Private
Sector General Insurance Companies in India. Auto Insurance
Sales and Rebating.

6. Insurance
Regulation in
India : IRDA.
Also PFRDA

13-14

Insurance Regulatory and Development Authority (IRDA)

Rules and Regulations, Registration of Insurance Company,
Loss Prevention and Control, Tariff Advisory Committee,
Protection of Policyholders Interest. Pension Regulator
PFRDA, Pension Regulation, NPS, EPFO.

7.Bankassurance
and Marketing
15
of Insurance
Products

8. Reinsurance

16

Trends in Insurance Marketing, Marketing Strategies by

Different Companies , Rebating, Bankassurance in India,
Bankassurance Models, Future of Bankassurance

The Reinsurance Contract, Functions of Reinsurance,

Methods of Reinsurance, Reinsurance vs Double Insurance,
Future of Reinsurance, Reinsurance Regulation in India,
Reinsurance Risk, Global Reinsurance

Module
9. Risk in
Insurance

10. Risk
Management in
Insurance

Session

Topic/Reading

17-18

Understanding risk in Insurance, Risk and Hazards, Theories

of Insurance Risk Management, Probability in Insurance Risk
Management, Analysis of Financial Statements of an
Insurance Company, Accounting Functions.

19-20

The Identification, Assessment, Treatment, Management and

Implementation of Risk Management Plan.
Risk Mitigation through Fire Insurance
Risk Mitigation through Liability Insurance
Risk Mitigation through Agriculture Insurance
Risk Mitigation through Marine Insurance

Appropriate Case Studies to be prescribed by the faculty for the course duration.
PEDAGOGY
The teaching methodology is based on lectures, case studies, guest lecture on some current
topics in this subject by some industry persons, active class participation through one major
Team Project on Insurance, real-life assignments involving thorough analysis and
presentations.
EVALUATION
The course will be evaluated on the following basis:
End Term Examination
50 marks
Internal Assessment
50 marks
INTERNAL EVALUATION
The internal evaluation of the students will be based on the following basis:
Live Team Project

30

Case Study Analysis

10

Classroom Participation

10

TEXT BOOK
Swarup C. Sahu and Suresh C. Das, (2013) Insurance Management, Himalaya, 2nd Ed, 2013.
OTHER READINGS
G E Rejda, Principles of Risk Management and Insurance, Pearson, 2002
P K Gupta, Insurance and Risk Management, Himalaya, 2005
Harrington And Niehaus, Insurance and Risk Management, McGraw Hill, 1999
Taxmann, Insurance Law Manual, 2001
Insurance Institute of India, Practice of General Insurance, Mumbai 1999
Robert I. Mehr, Life Insurance Theory and Practice, Business Publications Inc, 1997
Mark S. Dorfman, Fundamentals of Insurance, Prentice-Hall, 2002