Tribhuvan University
Faculty of Management
Office of the Dean
Bachelor of Business Administration in Finance (BBA-F)
Course Description
:This course deals with life insurance principles and practices. The course begins with an introduction to life insurance and describes insurance contractual provisions. It provides about fundamental aspects of life insurance policies and annuities. The course also deals with the details of underwriting process and claim settlement process of life insurance enabling students to choose right insurance policy and follow due procedures for claim settlement. Finally, the course deals with group life insurance an d provides students skill to analyze the cost and tax implications of insuring oneself. Course Learning Outcomes On completion of this course the students will be able to: Understand economic value of life, and of premature death to different types of families; Analyze insurance options and execute insurance contract; Select appropriate life insurance policy Identify factors affecting underwriting decisions; Follow procedures of claim settlement; Understand different aspects of group life insurance; Shopping for life insurance considering the cost and tax implication of insurance.
Course Objective
:The aim of this course is to provide students broad knowledge on the principles and practices of life insurance. It also aims to provide students required skills useful to apply the principles and practices in managing life insurance business. Course Description This course deals with life insurance principles and practices. The course begins with an introduction to life insurance and describes insurance contractual provisions. It provides about fundamental aspects of life insurance policies and annuities. The course also deals with the details of underwriting process and claim settlement process of life insurance enabling students to choose right insurance policy and follow due procedures for claim settlement. Finally, the course deals with group life insurance an d provides students skill to analyze the cost and tax implications of insuring oneself. Course Learning Outcomes On completion of this course the students will be able to: Understand economic value of life, and of premature death to different types of families; Analyze insurance options and execute insurance contract; Select appropriate life insurance policy Identify factors affecting underwriting decisions; Follow procedures of claim settlement; Understand different aspects of group life insurance; Shopping for life insurance considering the cost and tax implication of insurance.
Course Contents:
Lecture hours show the approximate classroom time allocated to each unit.
Unit 1. Introduction to Life Insurance
- Concept and objectives of life insurance
- Economic value of life
- Needs of life insurance
- Impact of premature death to different types of families.
Unit 2. Life Insurance Contractual Provision
- Components of life insurance contracts
- Additional life insurance benefits
- Riders in life insurance
- Life insurance options: dividend options, non -forfeiture options, and settlement options.
Unit 3. Life Insurance Policies and Annuities
- Feature and importance of different types of life insurance policy: term, endowment, whole life
- Other plans: unit linked, pension plans
- Concept of annuities: individual annuities, individual retirement accounts
- Taxation of individual annuities: income tax and capital gain tax.
Unit 4. Underwriting of Life Insurance
- Underwriting: concept, guiding principles and process
- Agents’ role on underwriting
- Responsibility of underwriters
- Factors affecting underwriting decisions: mortality, morbidity and other factors
- Life insurance proposal form.
Unit 5. Claim Settlement of Life Insurance
- Claim settlement: concept and process
- Types of claims: death claim, maturity claim, survival benefits, surrender
- Legal provision of claim settlement in Nepal: documentation and process
- Role of Beema Samiti on settlement of claim disputes.
Unit 6. Group Life Insurance
- Introduction to employee benefits plans
- Concept of group insurance
- Group life insurance
- Group disability income insurance
- Marketing group insurance
- Alternative for group benefits plan funding.
Unit 7. Buying Life Insurance
- Determining the cost of life insurance
- Rate of return on saving components
- Taxation of life insurance in Nepal
- Shopping for life insurance.
- Basic Books Black, K. Jr., & Skipper, H. D. Jr. Life and Health Insurance. New Delhi: Pearson Education.
- Rejda, E. G. Principles of Risk Management and Insurance. New Delhi: Pearson Education.
Suggested Readings:
Mishra, M. N., & Mishra, S. B. Insurance Principles and Practices. Delhi: S. Chand & Company. Mishra, K.C. and C. S. Kumar C. S. Life Insurance: Princip les and Practices . New Delhi: Cengage Learning. Ghimire, R. Insurance Theory and Practices. Kathmandu: Buddha Publication. Government of Nepal, Insurance Act, 1992 and Insurance Regulation, 1993. Solvency Margin Directive for Life Insurers. Corporate Good Governance Directives. Investment Directives issued by Beema Samiti (Insurance Board of Nepal). Annual Report and occasional publications of Insurance Board of Nepal.