BANKING & INSURANCE (BCA 503) SYLLABUS Total- 52 Hours

UNIT I 12 Hours

Financial System: Institutions, Markets- Primary, Secondary, Money & Capital Markets, Instruments of Money Market, Functions & their economic significance UNIT II 12 Hours

Commercial Banks- Functions, Structure of Commercial banks in India- Source of funds, Investment normsfactors determining liquidity of banks- Asset Structure of Commercial banks- Profitability of banks UNIT III 08 Hours

The Concept of Risk & Insurance- Classification of insurance- Life Insurance- Types of General Insurance of Property, Pecuniary Interest, Liability and person- types of polices, fire, marine, motor, engineering, aviation, agriculture, liability and person UNIT IV 12 Hours

Essential of a contract- Principles applicable to insurance business- utmost good faith- insurable interestindemnity- subrogation and contribution- proximate cause- financial principles- premium funds- investmentsreserves- surplus- valuation of funds. Introduction of risk- Risk appraisal- Risk selection underwritingReinsurance- Concepts and methods- Facultative, treaty reinsurance and various methods UNIT V 12 Hours

Growth and development of insurance- Present day Regulatory environment Insurance act, 1938- IRDA act, 1999- Present Market Environment- Intermediaries- Office organization- Departments- FilesCorrespondence- New technology, Controls REFERENCES:1. G. Kotreswar, Risk Management Insurance & Derivatives- Himalaya Publishing House 2. T.T. Seth, Insurance Principles & Practice- S. Chand, New Delhi 3. Course- IC 01,IC 02, IC 11, IC12, IC25 of Insurance Institute of India, Mumbai 4. L.M.Sbole Financial Institutions and Markets, TMH
5. K.C. Shekar & Laksamy Sheler, Banking Theory & Practice, Vikas Publication (2001)

LESSON PLAN SUBJECT -BANKING & INSURANCE TOTAL NO. OF HOURS- 36 TOTAL MARKS- 100 CLASS NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 3 2 MODULE NO. 1

SUBJECT CODE - BCA 503 HOURS/ WEEK- 4 I.A MARKSGRADE

SUBJECT TOPIC TO BE COVERED Introduction about Banking & Insurance Financial Institution, Financial assets, Financial Market Chart for Financial System Primary Market, Secondary Market, Money Market Capital Market, Difference between Capital & Money Market Instruments of Money Market- Treasury Bills (T-Bills), Commercial Papers (CPs) Certificate of Deposits, Call Money Market Repurchase Agreement (Repo), Listing and economic significance Commercial banks Introduction Functions of commercial banks Structure of commercial banks in India Source of funds Investment norms & factors determining liquidity of banks Asset structure of commercial banks Profitability of banks Profitability of commercial banks The concept of Risk & Insurance Classification of Insurance- life insurance Types of general insurance- insurance of property, pecuniary interest Liability & persons Types of policies fire, marine, motor Engineering, aviation, agriculture, liability and person

23 24 25 26 27 28 29 30 31 32 33 34 35 36

Essentials of a contract Principles applicable to insurance business utmost good faith (insurance) and insurable interest Indemnity subrogation & Contribution, proximate causes Financial principles, premium funds Investments reserves- surplus valuation of funds Introduction to risk, risk appraisal Risk selection. Underwriting, reinsurance Concepts and methods- factuative, treaty, reinsurance and various methods

Growth and development of Insurance Present day regulatory environment insurance act 1938 IRDA act, 1999 present market environment Intermediaries- office organization & departments Files, correspondence, new technology, control New technology & control

Syllabus for 1st Internal Test Unit 1, Unit 2 For 2nd Internal Test Unit 3, Unit 4, Unit 5

References Books for Banking & Insurance (BCA 503)

1. Ravindra Babu. S, Banking & Insurance, Skyward Publishers 2. Jagroop Singh, Banking & Insurance, Kalyani Publishers 3. M Y Khan, Indian Financial System, Tata McGraw Hill Publishers- 5th Editions 4. Meir Kohn, Financial Institutions & Markets, Tata McGraw Hill edition 5. K.C.Shekhar & Lekshmy Shekhar, Banking Theory & Practices, 20th Editions Vikas Publishing

QUESTION BANK

UNIT- 1 Short Answers- 2 marks

1. Define Financial System? 2. Name the components of the financial system of any country? 3. Mention the functions of the Financial Systems? 4. What are Financial Markets 5. Name the state owned insurance corporations in India 6. Define ICICI 7. What is a Money Market? 8. Who are the participants of the Treasury Bills (t-bills) market? 9. What is a call money market? 10. Name a money market instrument, which enables collateralized short term borrowing and lending through sale/purchase operations in debt instruments? 11. What instruments are contained in the capital market? 12. What is a primary market? 13. What is book building process? 14. Define a stock exchange? 15. Define DEMATERIALISATION? 16. What are the benefits of having a demat account? 17. Who are the depositories? 18. Name the two depositories in INDIA. 19. Mention the difference between term deposit & certificate of deposit (CD)?

5 Marks Questions
1. What is a financial system? Discuss the components of the Financial system 2. What are the characteristics and functions of the financial markets 3. A financial system is a well-integrated system whose parts interact with each other comment 4. Distinguish between money market & capital market 5. Distinguish between primary market & secondary market 6. State the functions of a foreign exchange market

7. What is a capital market? What are its major constituents? 8. What are the characteristics of the Financial system 9. What are the characteristics of T-Bills 10. Distinguish between repo & reverse repo 11. Classify the financial intermediaries functioning in the Indian Financial System and bring out their features 12. Treasury bills are important short-term source of finance for the government- explain 13. Write a short note on (i) Commercial papers (ii) Certificate of Deposit 14. Describe the primary market in India 15. Distinguish between the Primary & Secondary Markets 16. What is listing? What are its advantages & Disadvantages 17. What are the services provided by the stock exchanges? What are the distinctive features of stock markets in India

Essay Questions: - 15 Marks

1. What is capital market? Discuss the objective and importance of capital market 2. What are the functions of capital market? Outline the structure of Indian capital market 3. What is a stock exchange? Discuss the shortcoming of Indian stock exchange. Suggest measures for their improvements 4. Distinguish clearly between capital market & money market 5. What do you mean by New Issue Market? Examine in brief the growth of new issues market in India. 6. What do you meant by listing of securities? Which documents are to be filed with the stock exchange for listing of securities? 7. What is the procedure followed at the stock exchange for making purchases and sales? 8. Discuss various capital market reforms that have been announced by the government during 1991 to 2002

UNIT 2 Short Answers:-2 marks

1. Define a Bank? 2. Mention the two broad functions of RBI? 3. Why RBI is called Bankers Bank and the lender of the last resort?

4. How are Commercial banks classified? 5. How do we classify the Indian Commercial banks? 6. What are scheduled commercial banks? 7. What are Unsecured loans 8. What are Secured loan 9. What are General Utility services 10. What is NPAs 11. Define e_banking? 12. Mention the Sources of funds of commercial banks? 13. What are the Primary functions of a bank? 14. What is ATM? 15. Define Particular Lien. 16. Explain Pay-in-Slip books? 17. Explain fixed deposits accounts? 18. Explain current account?

5 Marks Questions
1. Mention the objectives of RBI? 2. Mention the difference between Public sector and private sector banks 3. Distinguish between Indian Banks & Foreign Banks 4. What are the modes of short-term financial assistance of the commercial banks 5. Mention the different methods of Granting Loans by Banks 6. Explain the features of commercial banks 7. What are NPAs 8. Mention the Asset classification and categories of NPAs 9. What are the various factors affecting liquidity of the banks 10. Explain the term (a) liquidity (b) Profitability of a commercial banks 11. What are commercial banks? Explain their features 12. Write the schematic representation of the structure of commercial banks in India 13. Discuss the various sources of funds of a commercial bank

14. Explain the various factors determining the liquidity of banks 15. Write briefly on the profitability of commercial banks

Essay questions- 15 marks

1. Define commercial bank. Discuss the functions of a commercial banks 2. Explain the role of the banks in economic development of a country 3. Discuss the Rights of a commercial banks 4. Briefly explain the obligation of a commercial banks 5. Commercial bank is foundation stone of modern commerce and industry. Explain the statement 6. Write notes on:- (1) Modern functions of bank (2) development functions of banks (3) obligations of banks (4) Rights of a banks 7. Explain different types of banks 8. Define unit banking. What are its advantages & disadvantages? 9. Explain branch banking. Discuss its advantages and limitations 10. What do you mean by group banking? Explain its merits and demerits 11. Discuss the characteristics of good banking system 12. Explain the different types of accounts opened with a bank, <0%> which of the accounts is suitable for a businessman and why? 13. Discuss the procedure to open as current account in a bank. 14. Discuss the different between fixed, current and saving accounts of a bank 15. Discuss the advantages of a bank account. How a customer can close his/her account. 16. Write a detailed note on present structure of commercial banking in India 17. Explain the types of commercial banks in India 18. What is meant by management of deposits? Explain the need of deposit management in commercial banks 19. Mention the features of deposit mobilisation schemes. What are the main qualities of new deposit mobilisation schemes? 20. Explain Bank Investment. Discuss the significance of Investment Management in commercial banks in India? 21. Define profitability. Discuss the measures of profitability of bank?

UNIT 3 Short Answers:- 2 marks

1. Define pure risk 2. What are diversifiable risks 3. What is insurable interest 4. What is principle of indemnity 5. What is principle of Causa proxima 6. Define Insurance 7. What is underwriting process 8. What is endowment insurance 9. Define Liability Insurance 10. What is fire insurance? 11. Define health insurance? 12. What is Hull All Risks.

5 Marks Questions
1. Differentiate between pure and speculative risks 2. Differentiate between Diversifiable and Non-Diversifiable risks 3. Mention the Risk Management techniques 4. Briefly describe the role of Insurance in Economic growth 5. Describe the concept of Insurable risk 6. What are the characteristics of Insurance industry 7. Write a short note on the benefits of Insurance 8. Mention the factors affecting individuals demand for the Insurance 9. Explain the factors affecting individuals demand for the Insurance 10. Explain marine Hull Insurance 11. Give two examples of health insurance

12. Describe the various types of risks 13. Describe the classification of Insurance 14. Describe the various types of General Insurance 15. Write the short note on (I) Fire Insurance (2) Marine Insurance 16. Briefly describe the various general Insurance Products

Essay questions- 15 marks

1. Define Risks. What are the various methods of handling Risk? 2. Are all risks insurable? Explain the features of Insurable Risk. 3. Describe Various types of Risk 4. Define Insurance. Explain its functions & Characteristics of insurance 5. Explain the following terms (1) Insurer (2) Insured (3) Compensation (4) Risk (5) Contingency (6) Peril 6. Define Life Insurance. What are its main characteristics? Explain the procedure for taking a life insurance policy? 7. Define five insurance. Explain its various characteristics. Explain the procedure for purchasing a fire insurance policy 8. Explain the various social insurance schemes 9. Distinguish between life insurance & General insurance. Explain briefly the various type of life insurance policy in use in India 10. Discuss the procedure to take a life insurance policy. 11. Life insurance provides both protections as well investment. Explain 12. Critically evaluate the growth of general insurance after nationalisation in India 13. Discuss the non-life insurance procedures followed in India 14. Multi-Purpose policy is fulfilling almost all types of human needs. Comment 15. Describe the different types of Endowment and Term Policies 16. Explain the rural insurance policies available with general Insurance Corporation in India? 17. What are urban non-traditional insurance policies available with GIC? 18. Discuss the various types of Marine insurance policies.

UNIT 4 Short Answers:-2 Marks

1. What are the four requirements for an Insurance Contract 2. What is the Principle of Utmost Good Faith? 3. What is the Principle of Indemnity? 4. What is Principle of subrogation 5. Define Risk 6. What is Risk Appraisal 7. What are the Objectives of Investment Policy 8. Define underwriting 9. Define Underwriter 10. Mention the two principles of Underwriting 11. What are Underwriting Methods 12. Who are Liability Underwriters 13. What are Reinsurance 14. What are the Objectives of Reinsurance 15. What is treaty reinsurance 16. What are Facultative reinsurance

5 Marks Questions
1. What are the four requirements for an Insurance Contract 2. Mention the types of underwriters 3. Describe principle of Principle of Utmost Good Faith 4. Describe Reinsurance 5. What are Underwriting Methods 6. Explain the concept of risk and classification of risks 7. Explain Risk Appraisal. Mention the various methods 8. Explain the principles and purposes of Underwriting 9. Explain the principles of Insurances 10. Explain the various methods of Underwriting 11. Explain the concept of Reinsurance 12. Explain the various types of Reinsurances

Essay questions- 15 marks

1. Discuss the following principles of an Insurance contract (a) insurable Interest (B) Proxima Cause (c) Doctrine of Subrogation 2. Explain the various principles of Insurance 3. What is insurable interest and what is its importance in insurance 4. Explain the principles of indemnity. Discuss its need and importance in insurance 5. What do you understand by principle of contribution? Explain the pre-requisites for the application of this doctrine 6. What are the principle of proximate cause and Subrogation? Discuss their significance and main features 7. Define Underwriting of Risk. Explain the needs and importance of underwriting of risk 8. Who can works as an underwriter 9. Briefly explain the underwriting process 10. Explain the characteristics & Methods & Advantages of Reinsurance.

UNIT 5 Short Answers:- 2 Marks

1. What are the four Subsidiaries of Insurance Corporation of India (GIC) 2. What is the main purpose of the Malhotra Committee 3. What are the various Insurance Intermediaries 4. Who are Third Party Administrators (TPA) 5. Define IRDA 6. What is the composition of the Authority under IRDA act 7. What is objective of the Insurance Act, 1938 8. What is Data Warehousing 9. What are Cat Models

5 Marks Questions
1. Mention the Subsidiaries of GIC 2. What are the purposes of Malhotra Committee 3. What are the Capital requirement and foreign participation according to IRDA 4. Mention the various types of Insurance Intermediaries

5. Explain the purpose of TPA and their roles 6. Explain the composition authority of the Insurance company as per the IRDA act 7. What are the Duties, Powers and Functions IRDA 8. How does DSS helps in Insurance 9. Mention the important provisions of the Insurance Act 10. What are the Challenges of E-Insurance 11. Briefly explain the various Insurance intermediaries and their functions 12. Distinguish between, (a) Agents and Brokers (b) Agents and corporate Agents 13. Explain the provisions of the IRDA act 14. Explain the various provisions of the Insurance Act 15. Explain E-Insurance. Highlight on the advantages and its challenges 16. Write a short note on the application of IT in the field of Insurance

Essay questions- 15 marks

1. What were the main defects of two original Insurance Act. What were the reasons for the replacement act of 1912 2. What are the salient features of Insurance act, 1938? Discuss the provisions relating to its application to non-life Insurance 3. Discuss the provisions of Insurance act, 1938 relating to registration, Renewal & Cancellation of registration of Insurance company 4. Discuss the provisions and restriction on payment of commission and Rebate to agent under Insurance act, 1938 5. What are the provisions relating to Licensing of Insurance agents under act of 1938 6. What restrictions are placed on investment by an insurance company under Insurance act, 1938 7. Discuss Duties and power of controller of Insurance under the Insurance act of 1938 8. Discuss the powers, duties and scope of IRDA 9. Write notes on (a) Finance, accounts and Audit of IRDA (b) Powers of central Government in IRDA functioning 10. Define Insurance intermediaries. What are different types of insurance intermediaries? 11. Define Insurance Broker. Discuss the functions of Insurance Broker 12. Define Insurance Agent. What are the functions and duties of insurance agents 13. Discuss the functions and duties of surveyors and loss assessors

14. Briefly explain the organisational set-up of LIC 15. Briefly discuss the functions of different departments at central office of corporation 16. Explain the various function of divisional office of LIC 17. What functions are performed by the branch offices of LIC 18. Explain new means of technology used in insurance industry. What are the benefits of new technology