RISK MANAGEMENT

AND INSURANCE
VUONG THI BICH NGA
 Chapter 1: Risk management
 Chapter 2: Insurance
 Chapter 3: Marine Insurance
 Chapter 4: Aviation Insurance
 Chapter 5: Fire and explosion
 Chapter 6: Inland Transport Insurance
 Chapter 7: Reinsurance
 10%+ 30% project+ 60% final exam
 Textbook: Insurance in Int’ Business (Viet)
• Study guide (Eng)
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INSURANCE
DEFINITION
 Risk transfer
 Business of risk
 A commitment of the insurer to the insured
for indemnity of loss and damage caused by
agreed risks for the subject matter insured
NATURE OF INSURANCE
 risk sharing
 Large quantity number
VOCABULARY
 INSURANCE / ASSURANCE
 INSURER
 THE INSURED
 SUBJECT MATTER INSURED
 REINSURANCE
 CO-INSURANCE
 DOUBLE INSURANCE
 INSURANCE VALUE/ AMOUNT (V/A)
 INSURANCE RATE (R)
 INSURANCE PREMIUM (I)
 POLICY
 COVERAGE
PRINCIPIPLES OF INSURANCE
 1. Risk
Insurance is risk transfer
Only uncertainty is acceptable
Probability
Certainty is not accepted
2. Utmost goodfaith
The insurer and insured must be honest to each
other
 Insurer: inform all rules, regulation, conditions
related
 Insured: declare all information, loss and damage
PRINCIPIPLES OF INSURANCE
3. Insurable interest
The insured must have insurable interest
before/ at the time of signing the
contract/loss and damage
Point of time: before/at/after
4. Indemnity
The insurer will have to indemnify the insured
all loss and damage that agreed in the
insurance contract
Insurance amount/ Value (A/V)
Time of claiming and indemnity
PRINCIPIPLES OF INSURANCE
5. Subrogation
The insurer will be on behalf of the insured to
make a claim from the other that cause the
loss and damage after indemnifying for the
insured
For liability insurance
SUBJECT MATTER INSURED
 People
 Property
 Liability
 Health??
 Beauty??
BENEFITS OF INSURANCE
 Transfer the risk
 Confidence for people in the society
 GDP’s growth rate
 Indemnity
 Create employment
TYPES OF INSURANCE
 Based on subject matter insured
 Based on Law
 Based on type of business
 Based on area
 Based on profit
 Others
QUESTION
 How many insurance company in Vietnam?
 Difference between co-insurance and re-
insurance?
 Do you insure yourself ? Why?
WORKING IN GROUP
 Export 10,000 MT rice to Malaysia, CIF Incoterms
2010
 Import electronic equipments from Tianjin (China)
 Opening a branch in Cambodia (a bank)
 Investing in South Africa (a trading company)
 Open a Spa in district 3, Hochiminh city
 Starting a branch in Philippine (trading company)
 Opening a fitness club near the uni
 Purchasing a vessel from Norway
 Start a company in Singapore
 Start a company in Dubai
 Open a supermarket selling Australian goods in HCMC
 Start a Vietnamese restaurant in Japan
WORK WITH YOURSELF
 A Vietnamese company exports
100,000MT of crude oil to Korea,
FOB VungTau, Vietnam. Write a risk
management plan for this case
 A Vietnamese company imports
20,000MT of wheatx from Australia,
CIF Catlai, HCMC. Write a risk
management plan for this case