Property and Liability Insurance Syllabus - BBA-BI (PU)

Course Objectives

This course aims to provide students broad knowledge on properties and liability 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 and liability insurance in Nepal.

Course Description

This course is designed to provide broad understanding on properties and liability insurance. Specifically the course deals with the introduction to properties and liability insurance, the nature of general insurance contract, various services provided by fire, motor, marine, aviation, engineering and miscellaneous insurances. The course also addresses current problems and prospects in the field of property and liability insurance in Nepal.

Course Outcomes

• On successful completion of this course students will be able to:
• understand the principles of general insurance;
• understand provisions of general insurance contract;
• select appropriate policies of fire insurance to cover the risk of fire;
• explain fundamentals of motor insurance and select appropriate policies of motor insurance to cover the risk associated with motor insurance including third party liabilities;
• understand fundamentals of marine and goods-in-transit insurance and its role in international trade; explain important concepts related to liability insurance;
• understand fundamentals of aviation insurance and its market;
• identify appropriate products for engineering and contractors’ all risk insurance; and
• follow underwriting and claim settlement process of general insurance.

Course Contents

Unit I: Introduction                                                                                                                       4 hours

Introduction to general insurance; types of general insurance; development of general insurance in general and in Nepal; and principles of general insurance.

Unit II: General Insurance Contract                                                                                        5 hours

General insurance contract; proposal form; inspection; general insurance policy; coverage; adds on Cover; exclusion; policy condition; schedule; endorsements; days of grace; trailers; and policy cancellation and reinstatement of the policy.

Unit III: Fire Insurance                                                                                                                 5 hours

Brief history of fire insurance; types of fire insurance; fire insurance contract; major coverage; comprehensive cover; and major clauses of fire insurance policy and policy conditions. 

Unit IV: Motor Insurance                                                                                                             5 hours

Types of motor insurance; certificate of motor insurance; fire and theft cover; other coverage; cover note; no claim discount; green card system; policy conditions; motor tariff; own damage loss; third party liability; knock for knock; and hit and run.

Unit V: Marine Insurance and Goods in Transit Insurance                                          5 hours

Brief history of marine insurance; marine insurance and international trade; types of marine insurance; goods in transit insurance; coverage; and policy condition; and exception.

Unit VI: Engineering Insurance                                                                                                 5 hours

Concept of engineering insurance; contractors all risk insurance; erection all risk insurance; machinery breakdown insurance; boiler insurance; coverage; policy condition; and exception.

Unit VII: Aviation Insurance                                                                                                       3 hours

Types of aviation insurance; aviation cover note; role of aviation insurance; and aviation insurance in Nepal.

Unit VIII: Liability Insurance                                                                                                      6 hours

Concept of liability insurance; basic legal liability; law of negligence; imputed negligence; res ipsa loquitor; special application of the law of negligence; current tort liability problem; general liability loss exposure; and different types of liability insurance.

Unit IX: Miscellaneous Insurance                                                                                             5 hours

Cash insurance; bankers’ indemnity insurance; personal accident insurance; burglary insurance; micro insurance; cattle and crop insurance; pecuniary loss insurance; cattle and crop insurance; micro insurance; and reinsurance.

 Unit X: Underwriting and Claim Settlement 5 hours

Underwriting process of property and liability insurance; pricing; tariff and premium calculation; de-tariff claim settlement process; insurance surveyor and third party administrator’s role in claim settlement process; issues in claim settlement process; and claim settlement process in Nepal.

Basic Texts

1. Regda, G. E. Principles of risk management and insurance. New Delhi: Pearson Education.
2. Dorfman, M.S. Introduction to risk management and insurance. New Delhi: PrenticeHall India Learning.

References

1. Harrington, Scott E. Risk management and insurance. New Delhi: Tata McGraw- Hill Publishing Company.
2. Mishra, M. N. & Mishra, S. B. Insurance principles and practice. New Delhi: S. Chand & Company.
3. Vaughan, E. J. & Vaughan, T. M.. Fundamentals of risk and insurance. John Wiley & Sons
4. Indian Institute of Banking and Finance. Risk management. New Delhi: Macmillan