MI4503 Principles of Insurance Syllabus:

MI4503 Principles of Insurance Syllabus – Anna University PG Syllabus Regulation 2021

COURSE OBJECTIVE:

 The main objective of this is to make the learners understand about the principles of insurance and the essentials of a valid insurance contract. The relationship between insurers and their customers and the importance of insurance contracts are discussed.

UNIT I THE CONCEPT OF INSURANCE AND ITS EVOLUTION AND SCOPE OF INSURANCE

The basics and nature of insurance – evolution and nature of insurance – Nature and Scope of Insurance, how insurance operates today –importance of insurance – Common terms used in insurance Life and nonlife insurance – how insurance takes care of unexpected eventualities. History of Insurance in India. Introduction to Insurance – What is insurance – how it works – importance of insurance industry – history of insurance.

UNIT II DIFFERENT TYPES OF INSURANCE

Health Insurance- Auto Insurance- Group Insurance – Unit linked insurance Accident or Sickness Insurance-Property Insurance-Liability Insurance- Other Types of Insurance. Insurance Customers: Understanding insurance customers – different customer needs – importance of customers – customer mindsets – customer satisfaction – customer behavior at purchase point – customer behavior when claim occurs – importance of ethical behavior.

UNIT III THE BUSINESS OF INSURANCE

Management of risk by individuals – management of risk by insurers – fixing of premiums – reinsurance and its importance for insurers – role of insurance in economic development and social security – contribution of insurance to the society. Premium Payment, Lapse and Renewal: Premium, Surrender Values, Non- Forfeiture Options, Revival; Assignment Nomination Loans – Surrenders – Foreclosure: Assignment, Nomination, Loan and Surrenders, Foreclosure. Policy Claims: Maturity Claims Survival Benefits, Death Claims, Claim Concession Presumption of Death, Accident Benefit Options, Settlement Options, Valuation and Surplus, Reinsurance.

UNIT IV THE INSURANCE CONTRACT

Terms of an insurance contract – principles which form the foundation of insurance – significance of the principle of insurable interest – the principle of indemnity – the principle of subrogation – the principle of contribution – disclosure of all relevant information – principle of utmost good faith – the relevance of proximate cause – the insurance contract Reinsurance: What is reinsurance – Need for reinsurance – Functions of reinsurance – Types of reinsurance – Reinsurance

UNIT V DISPUTE RESOLUTION MECHANISM

Settlement of Claims, Insurance Laws and Regulations – Insurance Act 1938, Life Insurance Corporation Act 1956, IRDA Act 1999, Ombudsman Scheme Tax Benefits under Life Insurance Policies

TOTAL : 45 PERIODS

COURSE OUTCOMES:

Upon completion of the subject, students will be able to:
 Identify what insurance is, why insurance works and how to determine insurance needs.
 Explain insurance operation, including functions of insurance, insurance customers, insurance regulations and the use of insurance as a tool to avoid losses and reduce risk.
 Familiarize themselves with major insurance products, such as life insurance, health insurance, property and liability insurance.

TEXT BOOKS:

1. Mishra M.N. – Insurance Principle & Practice, (Sultan Chand & Company Ltd., NewDelhi) Rev. Edn. 2007
2. Tripathy N.P – Insurance: Theory and Practice (Prentice Hall India Learning Private Limited (2005)
3. George E. Rejda & Michael McNamara – Principles of Risk Management and Insurance, 12th Edition (Pearson Series in Finance) 2013

REFERENCES :

1. P. Periasami- Principles And Practice Of Insurance (Himalaya Publications, 2012)
2. Jones H & Long D-Principles of insurance: life, health and annuities; LOMA, 1997.
3. S. Arunajatesan and T.R. Vishwanathan: Risk Management and Insurance: Macmillan publications 2009, NewDelhi.