Credits: 3
Lecture Hours: 48
Course Objectives:
This course has been designed with the objective of enabling students to understand the theory and practice of insurance and apply them to manage risk in life and businesses. Upon completion of this course the students will have through knowledge of fundamentals of risk and insurance, principles of insurance and insurance contract. They will also learn important aspects of life and non-life insurance and how they are managed and regulated.
Course Description:
Risk accompanies life and business. Insurance evolved to ward off the risk. Over the period, insurance has grown as a mature business practice and developed into a separate subject of study. This course embodies this knowledge and begins with an introduction to risk and insurance and describes the fundamental principles of insurance. Then it describes the regulatory environment in which the insurance business operates. The course also deals with life and non-life insurance business. The topics covered are: risk and insurance, principles of insurance, insurance regulation, insurance contract, functions of an insurance company, automobile insurance, property and liability insurance, and life and health insurance.
Course Details:
Unit 1: Overview of Risk and Insurance LH 6
Risk and its classification; Techniques for risk management; Characteristics of insurance;
Principles of insurance; Types of insurance: life insurance, health insurance, property and
liability insurance, social insurance; Benefits and costs of insurance to society; Overview of
insurance industry in Nepal.
Unit 2: Insurance Regulation LH 6
Reasons for insurance regulation; Methods for regulating insurers; Areas of regulation; State
versus federal regulation; Regulation of insurance industry in Nepal; Major regulations; and
the role of regulatory authority in Nepal.
Unit 4: Insurance Contract LH 5
Requirements of insurance contract; Distinct legal characteristics of insurance contract; Basic
parts of insurance contract; Endorsement and riders; Deductibles; Coinsurance; Other
insurance provisions.
Unit 5: Insurance Company Operation LH 7
Insurance company functions: Product development and pricing; Underwriting; Claims
settlement; Reinsurance; Investments.
Unit 6: Life and Health Insurance LH 12
Impact of premature death; Features of life insurance; Amount of life insurance to own; Types
of life insurance; Life insurance contractual provisions; Life insurance in Nepal: current status
of life insurance companies, their policies and underwriting practices; Objective of health
insurance; Individual medical expense insurance; Long-term care insurance; Disability-income
insurance; Individual health expense contractual provisions; Group health insurance; Health
insurance in Nepal.
Unit 7: Property and Liability Insurance LH 8
Introduction to property insurance; Types of property insurance; Liability risk; Types of
liability insurance; Property insurance in Nepal; Liability insurance in Nepal.
Unit 8: Auto Insurance LH 4
Introduction to auto insurance; Types of auto insurance policies; Shopping for auto insurance
policies; Auto insurance in Nepal: Status and trend.
Basic Readings:
1. Regda, G. E. & McNamara, M. (2017). Principles of risk management and insurance. Delhi:
Pearson.
2. Harrington, S. E. and Niehaus, G. R. (2004). Risk management and insurance. Delhi: Tata
McGraw-Hill.
References:
1. Vaughan, E. J. & Vaughan, T. M. (2018). Fundamentals of risk management. Delhi: John
Willey and Sons.
2. Insurance Act and Byelaws of the Government of Nepal.
3. Publications of Insurance Board of Nepal (Beema Samiti).
No comments:
Post a Comment