Tribhuvan University
Faculty of Management
Office of the Dean
Bachelor of Business Administration in Finance (BBA-F)
Course Description
:This course deals with principles and practices of general insurance. The course begins with an introduction to property and liability insurance. It also covers health insurance, auto insurance and other property insurance. The course enables students to develop skill required for rate making, underwriting and claim settlement of different types of general insurance. Finally, the course deals with concept of reinsurance and reinsurance market. Course Learning Outcomes On completion of this course the students will be able to: Understand the basics of property insurance including its types, coverage and exclusions; Distinguish between different types of liability insurance policies; Explain the benefits of health insurance and its status in Nepal; Describe different types of auto insurance policies along with their coverage, and choose appropriate policy; Develop skill for rate making, underwriting and claim settlement of general insurance; Understand the marine, aviation, engineering, agriculture, travel insurance, umbrella insurance policy and banker’s blanket insurance; Explain different types of reinsurance treaty and risk sharing methods; and the reinsurance markets.
Course Objective
:This course aims to provide students broad knowledge on properties, liability and health insurance, and equip them with skills to put the knowledge in practice. The course will also familiarize students with the current problems and prospects in the field of property, auto, liability and health insurance in Nepal. Course Description This course deals with principles and practices of general insurance. The course begins with an introduction to property and liability insurance. It also covers health insurance, auto insurance and other property insurance. The course enables students to develop skill required for rate making, underwriting and claim settlement of different types of general insurance. Finally, the course deals with concept of reinsurance and reinsurance market. Course Learning Outcomes On completion of this course the students will be able to: Understand the basics of property insurance including its types, coverage and exclusions; Distinguish between different types of liability insurance policies; Explain the benefits of health insurance and its status in Nepal; Describe different types of auto insurance policies along with their coverage, and choose appropriate policy; Develop skill for rate making, underwriting and claim settlement of general insurance; Understand the marine, aviation, engineering, agriculture, travel insurance, umbrella insurance policy and banker’s blanket insurance; Explain different types of reinsurance treaty and risk sharing methods; and the reinsurance markets.
Course Contents:
Lecture hours show the approximate classroom time allocated to each unit.
Unit 1. Property Insurance
- Meaning and concept of property insurance
- Types of property insurance
- Perils covered by property insurance and exclusions
- Personal policy and commercial property policy
- Homeowners policy.
Unit 2. Liability Insurance
- Meaning and concept of liability insurance
- Types of liability insurance: tort liability, negligence liability, personal liability, commercial liability, professional indemnity liability, product liability, third party liability.
Unit 3. Health Insurance 7 LH s
- Meaning and concept of health insurance
- Objectives and benefits of health insurance
- Types of health insurance: commercial health insurance, social health insurance, micro health insurance, group health insurance
- Health care management problems in Nepal
- Health insurance practices in Nepal.
Unit 4. Auto Insurance
- Types of motor vehicles
- Types of motor vehicle policy: coverage under Liability Only and Package Policies
- Policy condi tions
- Add on covers
- Exclusions
- Knock for Knock
- Agreements.
Unit 5. Other property insurance
- Marine insurance policy and risk coverage
- Aviation insurance policy and risk coverage
- Engineering insurance policy and risk coverage
- Agriculture ins urance policy and risk coverage
- Travel insurance policy
- Umbrella insurance policy
- Banker’s blanket insurance policy.
Unit 6. Rate Making, Underwriting and Claim Settlement
- Rate making: objectives, methods, tariff and non -tariff insurance busine ss in Nepal
- Underwriting process of property insurance, health insurance and liability insurance
- Underwriting practices in Nepal
- Claim settlement process in general insurance
- Legal provisions in Nepal
- Role of surveyor in claim settlement in Nepal
- Rol e of Beema Samiti in dispute settlement on claims.
Unit 7. Reinsurance
- Concept of reinsurance
- Reinsurance agreement: treaty and facultative
- Methods of risk sharing by reinsurance: proportionate and non-proportionate
- Responsibilities and rights of reinsurance brokers
- Factors influencing retentions
- Reinsurance markets.
- Basic Books Rejda, G. E. Principles of Risk Management and Insurance. New Delhi: Pearson Education.
- Vaughan, E. J. & Vaughan, T. M. Fundamentals of Risk and Insurance. New York: John Wiley &
- Sons.
Suggested Readings:
Mishra, M. N., & Mishra, S. B. Insurance Principles and Practices. Delhi: S. Chand & Company Ltd. Gupta, P. K. Insurance and Risk Management. Mumbai: Himalaya Publishing House. Ghimire, R. Insurance Theory and Practices. Kathmandu: Buddha Publication. Government of Nepal, Insurance Act, 1992 and Insurance Regulation, 1993. Directives, guidelines, policies issued by Beema Samiti (Insurance Board of Nepal). Publications of Beema Samiti.