Insurance and Risk Management

Unit 2
Syllabus
Insurance and Risk:
• Introduction to Insurance
• Insurable risk
• Types of Insurance, Social and
Economic benefits of insurance
• Government and Controlling
Authorities:
▫ IRDA framework
▫ Legal aspects of insurance,
essentials of insurance contracts
• Principles of insurance:
▫ Indemnity
▫ Utmost good faith
▫ Insurable interest
▫ Proximate cause
▫ Loss minimization
▫ Arbitration and average
Classification of insurance:
• Life insurance:
▫ meaning, features and benefits,
types of plans, traditional
products, market related products,
annuities, pension plans, riders-
business insurance, group
insurance, pricing in life insurance
• Non-Life Insurance:
• Features of Fire insurance contract
• Marine insurance – definition,
types & policies
• Auto insurance – need, types of
policies, claims
• Health Insurance – introduction,
plans in India, schemes, micro-
health insurance, TPAs
Introduction to Insurance
Principles of Insurance
• Indemnity
• Utmost good faith
▫ Representation
▫ Warranties
▫ Concealment
▫ Mistake
• Insurable interest
• Proximate cause
• Loss minimization
• Subrogation
• Arbitration and average (Contribution)
IRDA Framework
• Indian Financial System, Bharti V. Pathak,
Pearson, 5th edition, Pg. no. 662-666
Legal aspects of insurance
• General Insurance Principles and Practice, by
Cengage Learning, Pg. no. 17
Essentials of Insurance Contracts
a) Application for insurance
b) Binders or (memorandum)
c) Policy document
i. Heading
ii. Body of Contract
iii. Back side of policy document
d) Endorsements
e) Riders
Life Insurance
Features of Life Insurance
Benefits of Life Insurance
Types of Life Insurance
Traditional Products
Market Related Products
Annuities
Pension Plans
Riders
Business Insurance
Group Insurance
Pricing in Life Insurance
Fire Insurance Contract
Marine Insurance
Marine Insurance Types & Policies
Auto Insurance
Need, types of policies, claims
Health Insurance
Health Insurance Plans in India
Micro Health Insurance
TPAs