Kirloskar Institute for Advance Management

studies.2014
SUB: INSURANCE MANAGEMENT
TIME: 2 .00 Hrs. Marks: 50
ANSWER TO QUESTION 1 IS COMPULSORY. ANSWER ANY
FIVE QUESTIONS OUT
OF REMAINING NINE QUESTIONS.
Que. 1

Write short notes on the following.

a)

Selection of risk in life insurance

c)

Level premium

b) Salvage and

subrogation
d) Principle of

large numbers
Que. 2
Explain different

Which are the various sources of surplus in life insurance?

Methods of surplus distribution to the policy holders.

Que.3
Que.4

What is Re-insurance? Explain its significance to the Insurer.

Discuss the need for the Health insurance in Indian

scenario.
Que. 5
Que.6

Explain in brief different type of fire insurance policies.

Explain in

brief a) policy reserve

b) Rival claimants

c) TPA
Que 7 Discuss features of group insurance. Name the various schemes
under group insurance.

Que.8
Explain the principle of proximate cause with reference to the
following case.
Respondent-complainant took
insurance policies including a fire policy from insurance company in respect of
its factory. There was a short circuit in the main board receiving electricity. It
resulted in a flashover producing over currents. The entire electric supply to
the plant stopped and the boiler was damaged. Respondent- complainant filed
a claim before the insurance company. The claimant-respondent made two
claims (I) Rs.1,35,17,709/- for material loss due to the damage to the boiler
and other equipments and (ii) Rs.19,11,10,000/- in respect of loss of profit for
the period the plant remained closed. Surveyors submitted the report but the
appellant rejected the claim stating that the fire was momentary and not the

sustained one. The Supreme Court allowed the claim dismissing the appeal of
the insurance company upholding the principal of Proximate Cause.
Que.9
Enumerate different departments of the typical life insurance
company explaining in
Brief their functions.
Que.10. Discuss the different techniques practiced by the insurance
companies to manage the risk.
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