BCOP 622-18 Risk Management and Insurance

BCOP 622-18

CURRICULUM OF RISK MANAGEMENT & INSURANCE

 Course objective: This course aims at providing fundamental knowledge and exposure to the concepts and theories of risk management and insurance and to facilitate the students in appreciating need/significance of various types of insurance to mitigate the risks.

UNIT-I

Concept of Risk: Risk and Uncertainty, Types of Risk, Burden of Risk, Sources of Risk, Methods of handling Risk, Degree of Risk, Management of Risk.

Corporate and Personal Risk Management: Risk Management Process, Objectives of Risk Management, Risk Management Techniques, Need for a Rationale for Risk Management in Organizations, Understanding the cost of Risk, Individual Risk Management and the Cost of Risk.

UNIT-II

Identification of Risk: Tools/Techniques for perception of risk; Methods for determining the operative causes of peril; Safety audit.

Evaluation of Risk: Risk Avoidance & Reduction of Risk: methods of loss prevention and risk reduction; Role of surveyors in loss prevention/ risk reduction.

Techniques of Risk Financing: Retention of risk; Captive insurance companies,

UNIT-III

Insurance: Definition and Basic Characteristics of Insurance, Requirements of an Insurable Risk, Adverse Selection and Insurance, Insurance vs. Gambling Insurance vs. Hedging; Essentials of Insurance Contracts, Principles of Insurance, Legal Aspects of Insurance Contract Types of Insurance: Life Insurance, General Insurance: Fire and Motor Insurance, Health Insurance, Marine Insurance, Automobile Insurance.

UNIT-IV

Regulatory Framework of Insurance: Role, Power and Functions of IRDA, Composition of IRDA, IRDA Act’1999.

Control of Malpractices, Negligence, Computation of Insurance Premium, Loss Assessment and Loss Control, Exclusion of Perils

Suggested Readings:

• George, R., Principles of Risk Management and Insurance, Pearson Education.
• Dorfman, M. S., Introduction to Risk Management and Insurance, Pearson
• P.K, Insurance and Risk Management, Himalaya Publishing House.
• Mishra, N., Principles and Practices of Insurance, S. Chand and Sons.
• Black, K. and Skipper D., Life and Health insurance, Pearson Education
• Crane, F., Insurance Principles and Practices, John Wiley and Sons, New
• Vaughan, E. and T. Vaughan, Fundamentals of Risk and Insurance, Wiley & Sons