September 2021 What is Insurance ? Explain principles of insurance.

July 2022
The different principles of insurance are shown in
the following points :
Meaning :
(a) Principle of Utmost Good Faith
The term insurance refers to the method (b) Principle of Insurable Interest
(means) of protection from financial loss (c) Principle of Indemnity
which may occur due to happening of specific (d) Principle of Subrogation
uncertain events. (e) Principle of Contribution
(f) Principle of Mitigation of Loss
It is a type of risk management primarily (g) Principle of Causa-Proxima
used to compensate against the risk of
a contingent loss.

Insurance is a contract between two parties

whereby one of them (the insurer) agrees in
return for a consideration (premium) to
indemnify
(compensate) the other (the insured) event.

According to Insurance Act of 1938,

Insurance is defined as, ‘‘A provision which a
prudent man makes against inevitable
contingencies’’.
 Principle of Mitigation of Loss (insured must always try to minimise the loss)
 Principle of Utmost Good Faith (both parties must have utmost good faith towards each other)
 Principle of Subrogation (after the insured is compensated for the loss due to the damage of property
insured, then the right of ownership of such property passes on to the insurer)
 Principle of Insurable Interest (Insured must have insurable interest in the subject matter of insurance)
 Principle of Indemnity (Insurer assures to indemnify the insured in the event of loss) (EX. LIC)
 Principle of Contribution (where the insured has taken more than one policy for the same risk or subject
matter, the insured can claim the compensation only to the extent of actual loss either from one insurer or all
the insurers) (not applicable to life insurance policies)
 Principle of Causa Proxima (when the loss is caused by more than one causes, then the nearest cause should be
taken into consideration)
March 2022 Define bank. Explain different types of banks.

Central
Specialised
bank Commercial
bank bank

TYPES OF
Investment Co-operative
bank bank

BANKS
Saving Development
bank bank

Regional Exchange
Rural bank bank
1. Central Bank (RBI - apex – 1945 – RBI Act, 1944)
2. Commercial Bank (Public, Private and Foreign Banks)
3. Co-operative Bank (registered under Indian Co-operative Societies Act and regulated
under Banking Regulation Act)
• Primary Credit Societies – village level
• District Central Co-operative Bank – District Level
• State Co-operative Bank – State Level)
4. Industrial Development Banks (medium and long term funds to business firms for
expansion and modernisation)
5. Exchange Banks (facilitate foreign exchange transactions) (finance foreign trade, discount
BoE, remittances of interest, dividend, etc.)
6. Regional Rural Banks (1975 – CG 50% / SG 15% / Sponsored Banks 35%) (provide
banking facilities in rural areas)
7. Savings Bank (encourage savings)
8. Investment Bank (do not directly deal with general public) (financial and advisory support to
business firms)
9. Specialised Banks
• EXIM – financial assistance to exporters and importers
• SIDBI – 02/04/1990 – principal financial institution for promotion, financing and
development of MSME
• NABARD – apex institution for financing agricultural and rural sector - provides
• short term and long term credit through RRB
 SMALL FINANCE BANKS

 Existing non-banking financial companies (NBFC),

microfinance institutions (MFI) and local area banks
(LAB) can apply to become small finance banks.
 These banks can be promoted either by individuals,
corporate, trusts or societies.
 They are established as public limited companies in
the private sector under the Companies Act, 1956.
 They are governed by the provisions of Reserve Bank
of lndia Act, 1934, Banking Regulation Act, 1949.
March 2022 July 2022 September 2021 Explain the function of marketing in detail.

• Marketing refers to activities a company undertake to promote the buying or

selling of a product or services.

• Marketing includes advertising, selling and delivering products to consumer

or other business.

• “Marketing is a societal process by which individual or group obtain what

they need and want through creating, offering and freely exchanging product
and services of value of others.”
• Philip Kotlar
Functions of Marketing
• Marketing planning
• Product development
• Standardisation and grading
• Branding
• Packaging and labelling
• Pricing
• Customer support service
• Promotion
• Physical distribution
• Transportation
• Warehousing
March 2023 What is Road Transport ? Explain the advantages and disadvantages of Road Transport.
March 2023 Explain importance of marketing to the society and consumer.

July 2023 Explain importance of marketing to the society and firm.

• Marketing refers to activities a company undertake to promote the buying or selling of

a product or services.

• Marketing includes advertising, selling and delivering products to consumer or other

business.

• “Marketing is a societal process by which individual or group obtain what they need
and want through creating, offering and freely exchanging product and services of
value of others.”
• Philip Kotlar
 IMPORTANCE OF MARKETING

To society To Consumer To Firm

• Employment • Quality products • Goodwill
• Availability of various • Product awareness • Increase sales
products • Helps in selection • To counter
• Consumer awareness • Customer satisfaction competition
• Increase national effectively
income • awareness
• Increase standard of
living
 July 2023 Define Bank. Explain secondary functions of Bank.

What is Commercial Bank ??? Functions of

 Commercial bank is a profit making Commercial
institution. Bank
How Pri • Accepting of Deposits
mar
??? y
func
• Granting Loans & Advances
tion
 Commercial Bank accepts money from Sec • Agency Functions
the public at low rate of interest and ond
lending money to the business/firms at ary • Utility functions
high rate of interest. funt
 The difference between two rate of ion
interest is the PROFIT of the bank.
 SECONDARY FUNCTIONS OF COMMERCIAL BANK

AGENCY UTILITY FUNCTIONS

FUNCTIONS

A commercial bank
A commercial bank
performs utility
acts as an agent or
functions for the
representative of its
benefits of its clients.
client
 AGENCY FUNCTIONS UTILITY FUNCTIONS

• Periodic Collection Of Payment • ISSUE OF DRAFT

• Portfolio Management • ISSUE OF CHEQUE

• Fund Transfer • LOCKER FACILITY

• Dematerialisation • PROJECT REPORT

• Forex Transaction • GIFT CHEQUE

• UNDERWRITING SERVICES
• GOLD RELATED SERVICES
Explain the 14 Principles of Management ? July 2022/Sept. 2021/March 2022

 French mining engineer

 Promoted and Retired as Chief Managing

Director

 Book Name :- General and Industrial

Administration

 Father of Modern Management

HENRI FAYOL
(29 JULY 1841- 19 NOVEMBER
1925)
 Henry Fayol’s 14 Principles of
Management
MAHAREVISION DOSE :- DISCO DRESS U2AE

D DIVISION OF WORK E EQUITY

I INITIATIVE S SCALAR CHAIN

S SUBROGATION OF INDIVIDUAL S STABILITY OF TENURE

INTEREST
C CENTRALISATION U UNITY OF DIRECTION

O ORDER U UNITY OF COMMAND

D DISCIPLINE A AUTHORITY & RESPONSIBILITY

R REMUNERATION E ESPIRIT DE CORPS

1.Division of Work (in different departments – leads to specialisation)
2.Authority and Responsibility (proper balance)
3.Discipline (obey and respect the rules)
4.Unity of Command (orders from only one superior)
5.Remuneration (skill, expertise, knowledge, market trend, etc.)
6.Subordination of Interest (organisation is more important than individual)
7.Scalar Chain (hierarchy of authority from top level to lower level – Gang
Plank)
8.Stability of Tenure (job security)
9.Order (everything has a place, and everything should be in its place)
10.Centralisation (balance between centralisation and decentralisation)
11.Unity of Direction (one head and one plan)
12.Team Work (Esprit de corpse) (group activity)
13.Initiative (encourage employees to come with new ideas)
14.Equity (while dealing with employees)
 Explain the rights of consumers ? July 2022/Sept. 2021/March 2022

The word Consumer is derived from the Latin word ‘Consumere’ which means to eat or to drink. A
consumer means any person who buys any goods, hires any service or services for a consideration.

RIGHTS OF CONSUMER

• Right to safety
• Right to information
• Right to choose
• Right to be heard
• Right to seek redressal
• Right to consumer education
• Right to healthy environment
On 15th March 1962 the President of USA J.F. Kennedy declared certain rights of consumers. It is observed as
‘World Consumer Rights Day’.
1. Right against Spurious Goods (marketing of goods which are hazardous to health, spurious and pose danger to life)
2. Right to Safety (against products, production processes and services which are hazardous to health or life)
3. Right to Healthy Environment (demand action against businesses creating pollution)
4. Right to Protect from unfair business practices (black marketing, faulty weights and measures, adulteration, etc.)
5. Right to Information (price, content, batch no., manufacturing date, expiry date, etc.)
6. Right to Choose (freedom to select a commodity)
7. Right to Be Heard (listen and solve the complaints of consumers)
8. Right to Redress (fair settlement of complaints – demand repair, replacement, or compensation for defective
products and for poor services)
9. Right to Consumer Education (education and training regarding prevailing acts and legal processes)
10. Right to Represent (an opportunity to an individual and consumer group to represent consumers interest before
consumer forum)