What is General Insurance?

Insurance other than Life Insurance falls under the category of General Insurance. General Insurance comprises of insurance of property against fire, burglary etc, personal insurance such as Accident and Health Insurance, and liability insurance which covers legal liabilities. There are also other covers such as Errors and Omissions insurance for professionals, credit insurance etc.

Non-life insurance companies have products that cover property against Fire and allied perils, flood storm and inundation, earthquake and so on. There are products that cover property against burglary, theft etc. The non-life companies also offer policies covering machinery against breakdown,there are policies that cover the hull of ships and so on. A Marine Cargo policy covers goods in transit including by sea, air and road. Further, insurance of motor vehicles against damages and theft forms a major chunk of non-life insurance business.

In respect of insurance of property, it is important that the cover is taken for the actual value of the property to avoid being imposed a penalty should there be a claim. Where a property is undervalued for the purposes of insurance, the insured will have to bear a rateable proportion of the loss. For instance if the value of a property is Rs.100 and it is insured for Rs.50/-, in the event of a loss to the extent of say Rs.50/-, the maximum claim amount payable would be Rs.25/- ( 50% of the loss being borne by the insured for underinsuring the property by 50% ). This concept is quite often not understood by most insureds.

Personal insurance covers include policies for Accident, Health etc. Products offering Personal Accident cover are benefit policies. Health insurance covers offered by non-life insurers are mainly hospitalization covers either on reimbursement or cashless basis. The cashless service is offered through Third Party Administrators who have arrangements with various service providers, i.e., hospitals. The Third Party Administrators also provide service for reimbursement claims. Sometimes the insurers themselves process reimbursement claims.

Accident and health insurance policies are available for individuals as well as groups. A group could be a group of employees of an organization or holders of credit cards or deposit holders in a bank etc. Normally when a group is covered, insurers offer group discounts.

Liability insurance covers such as Motor Third Party Liability Insurance, Workmens Compensation Policy etc offer cover against legal liabilities that may arise under the respective statutes Motor Vehicles Act, The Workmens Compensation Act etc. Some of the covers such as the foregoing (Motor Third Party and Workmens Compensation policy ) are compulsory by statute. Liability Insurance not compulsory by statute is also gaining popularity these days. Many industries insure against Public liability. There are liability covers available for Products as well.

There are general insurance products that are in the nature of package policies offering a combination of the covers mentioned above. For instance, there are package policies available for householders, shop keepers and also for professionals such as doctors, chartered accountants etc. Apart from offering standard covers, insurers also offer customized or tailor-made ones.

Suitable general Insurance covers are necessary for every family. It is important to protect ones property, which one might have acquired from ones hard earned income. A loss or damage to ones property can leave one shattered. Losses created by catastrophes such as the tsunami, earthquakes, cyclones etc have left many homeless and penniless. Such losses can be devastating but insurance could help mitigate them. Property can be covered, so also the people against Personal Accident. A Health Insurance policy can provide financial relief to a person undergoing medical treatment whether due to a disease or an injury.

Industries also need to protect themselves by obtaining insurance covers to protect their building, machinery, stocks etc. They need to cover their liabilities as well. Financiers insist on insurance. So, most industries or businesses that are financed by banks and other institutions do obtain covers. But are they obtaining the right covers? And are they insuring adequately are questions that

need to be given some thought. Also organizations or industries that are selffinanced should ensure that they are protected by insurance.

Most general insurance covers are annual contracts. However, there are few products that are long-term.

It is important for proposers to read and understand the terms and conditions of a policy before they enter into an insurance contract. The proposal form needs to be filled in completely and correctly by a proposer to ensure that the cover is adequate and the right one.

General insurance : QUESTIONS and ANSWERS

What is insurance?

We face a lot of risks in our daily lives. Some of these lead to financial losses. Insurance is a way of protecting against these financial losses. For a payment (premium), an insurance company will take the responsibility of compensating your financial losses.

What is general insurance?

Insuring anything other than human life is called general insurance. Examples are insuring property like house and belongings against fire and theft or vehicles against accidental damage or theft. Injury due to accident or hospitalisation for illness and surgery can also be insured. Your liabilities to others arising out of the law can also be insured and is compulsory in some cases like motor third party insurance.

Why should one insure ?

One of the main reasons one should insure is to protect ones belongings and assets against financial loss. When one has earned and accumulated property, protecting it is prudent. The law also requires us to be insured against some liabilities. That is, in case we should cause a loss to another person, that person is entitled to compensation. To ensure that we can afford to pay that compensation, the law requires us to buy liability insurance so that the responsibility of paying the compensation is transferred to an insurance company.

Who should buy general insurance?

Anyone who owns an asset can buy insurance to protect it against losses due to fire or theft and so on. Each one of us can insure our and our dependents health and well being through hospitalisation and personal accident policies. To buy a policy the person should be the one who will bear financial losses if they occur. This is called insurable interest.

What kinds of policies are there?

Most general insurance policies are annual that is, they last for one year. Some policies are given for longer periods like fire insurance for residences and some for shorter periods like insurance for goods transportation or for emergency medical treatment during foreign travel.

How much should I insure for?

The amount you insure for is called the sum assured. Normally a policy should cover the value of the asset either the market value while insuring, or the cost of replacing the asset should it be lost or destroyed. The premium will depend on the sum assured.

Can I take two policies and get claims under both of them?

In case of an indemnity cover (one that seeks to compensate the actual loss )--for instance, a policy that covers property, if there are two policies in vogue, the loss shall be shared by both the policies. In no case can an insured get more than the actual pecuniary loss he or she has incurred. On the other hand, in respect of benefit policies like the Personal Accident policy, where a fixed compensation is paid, no matter what the actual loss is , one may obtain more than one policy.

On what basis is claim paid?

In indemnity policies, the upper limit of a claim is the sum assured and this usually applies for the period of the policy. Certain policies, however, allow for reinstatement of the Sum Insured by payment of proportionate premium for the remaining period of the policy. The actual claim will be the actual extent of financial loss as validated by documents like bills. If the property is underinsured, the insured shall bear a rateable proportion of the loss. There

can be more than one claim in the policy period but the sum assured is usually the limit for the policy period unless reinstated.

Nowadays health insurance policies which cover hospitalisation costs have also a cashless settlement of claims. That is, you dont have to pay for the treatment at the hospital and then make a claim for reimbursement of the expenses. The insurance company has a service provider called the third party administrator (TPA) health services, who liaises with the hospitals and directly makes the payment for your treatment as per the terms of your policy and coverage.

What is the periodicity of premium payments?

Most general insurance policies are annual and the premium payment is in advance. No risk commences unless you have paid the premium. In some long term policies companies have the facility of collecting premiums periodically.

Why do different people have different premiums ?

The premium is calculated on the extent and nature of the cover you want. A higher sum insured means a higher rate of premium. Similarly a higher risk will be charged a higher premium. An example of this is that an older person will have to pay a higher premium for health insurance for the same sum insured. Sometimes the risk is higher depending on the location of risks for example in motor insurance in areas where accidents are higher. So the premium will vary according to the nature and severity of the risk.

If I buy a policy and dont make a claim, it is a loss. So, why should I buy insurance? General insurance is not meant to be for savings or investment returns. It is meant for protection. What you pay for is the protection against a risk. To approach it as something from which returns should be obtained is not the correct approach as there is a price to pay for protecting a property worth lakhs for a few hundred rupees.

If there are problems with claims what can I do?

First you should write to the company and give them sufficient time to respond suitably. If they dont respond, or it is not a response satisfactory to you, then you can approach the appropriate judicial channel. For complaints relating to personal insurance covers upto a value of Rs.20 lakh, you may approach the Insurance Ombudsman in your area.

( HERE ANNOUNCE THE CONTACT INFORMATION OF THE OMBUDSMAN ).

The Ombudsman has a technical team that will go into the merits of your case and give an award) If you are unhappy with the outcome with the Ombudsman you still have recourse to consumer courts.

The IRDA also has a Grievance Cell. You may contact.

( HERE ANNOUNCE THE CONTACT INFORMATION OF IRDA) .

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Non-life insurance premia written in 2005 General insurance or non-life insurance policies, including automobile and homeowners policies, provide payments depending on the loss from a particular financial event. General insurance typically comprises any insurance that is not determined to be life insurance. It is called property and casualty insurance in the U.S. and Non-Life Insurance in Continental Europe. In the UK, General insurance is broadly divided into three areas: personal lines, commercial lines and London market. The London market insures large commercial risks such as supermarkets, football players and other very specific risks. It consists of a number of insurers, reinsurers, [P&I Clubs], brokers and other companies that are typically physically located in the City of London. The Lloyd's of London is a big participant in this market.[1] The London Market also participates in personal lines and commercial lines, domestic and foreign, through reinsurance. Commercial lines products are usually designed for relatively small legal entities. These would include workers' comp (employers liability), public liability, product liability, commercial fleet and other general insurance products sold in a relatively standard fashion to many organisations. There are many companies that supply comprehensive commercial insurance packages for a wide range of different industries, including shops, restaurants and hotels. Personal lines products are designed to be sold in large quantities. This would include autos (private car), homeowners (household), pet insurance, creditor insurance and others. ACORD [2] which is the insurance industry global standards organisation. ACORD has standards for personal and commercial lines and has been working with the Australian General Insurers to develop those XML standards, standard applications for insurance, and certificates of currency.

Contents
[hide]

1 Market trends 2 India 3 See also

4 External links

[edit] Market trends

USA was the largest market for non-life insurance premiums written in 2005 followed by the EU and Japan,

[edit] India
National Insurance Company Limited was incorporated in 1906 with its Registered office in Kolkata. Consequent to passing of the General Insurance Business Nationalisation Act in 1972, 21 Foreign and 11 Indian Companies were amalgamated with it and National became a subsidiary of General Insurance Corporation of India (GIC) which is fully owned by the Government of India. After the notification of the General Insurance Business (Nationalisation) Amendment Act, on 7th August 2002, National has been de-linked from its holding company GIC and presently operating as a Government of India undertaking. National Insurance Company Ltd (NIC) is one of the leading public sector insurance companies of India, carrying out non life insurance business. Headquartered in Kolkata, NIC's network of about 1000 offices, manned by more than 16,000 skilled personnel, is spread over the length and breadth of the country covering remote rural areas, townships and metropolitan cities. NIC's foreign operations are carried out from its branch offices in Nepal. Befittingly, the product ranges, of more than 200 policies offered by NIC cater to the diverse insurance requirements of its 14 million policyholders. Innovative and customized policies ensure that even specialized insurance requirements are fully taken care of. The paid-up share capital of National is Rs.100 crores. Starting off with a premium base of 500 million rupees (50 crores rupees) in 1974, NIC's gross direct premium income has steadily grown to 4021.97 million rupees (4021.97 crores rupees ) in the financial year 20072008. National transacts general insurance business of Fire, Marine and Miscellaneous insurance. The Company offers protection against a wide range of risks to its customers. The Company is privileged to cater its services to almost every sector or industry in the Indian Economy viz. Banking, Telecom, Aviation, Shipping, Information Technology, Power, Oil & Energy, Agronomy, Plantations, Foreign Trade, Healthcare, Tea, Automobile, Education, Environment, S National Insurance is the second largest non life insurer in India having a large market presence in Northern and Eastern India. The steady growth in premium income has been commensurately matched by profits over the years. As of March 2008, NIC's general reserve stood at 1457.25 million rupees (1457.25 crores rupees) with an asset value of 8867.99 million rupees (8867.99 crores rupees) signaling strong financial fundamentals. No wonder than that NIC has been accorded

AAA/STABLE financial strength rating by CRISIL rating agency, which reflects the highest financial strength to meet policyholders obligations.

SUMMER PROJECT

General Insurance Policies taken by the Government

Introduction

Insurance in India Brief history of the Insurance sector

The General Insurance Corporation of India Malhotra Committee Mukherjee Committee IRDA Bill

Policies prov vided by the government Social Policies Health policies Rural policies Travel insurance policies Pravasi Bhartiya Bima Yojana

Success of the above policies Challenges and weak points of these policies

 Opportunities Further offerings to be made Conclusion

Introduction

Insurance may be described as a social device to reduce or eliminate risk of life and property. Under the plan of insurance, a large number of people associate themselves by sharing risk, attached to individual. The risk, which can be insured against include fire, the peril of sea, death, incident, & burglary. Any risk contingent upon these may be insured against at a premium commensurate with the risk involved. Insurance is actually a contract between 2 parties whereby one party called insurer undertakes in exchange for a fixed sum called premium to pay the other party happening of a certain event.

Insurance is a contract whereby, in return for the payment of premium by the insured, the insurers pay the financial losses suffered by the insured as a result of the occurrence of unforeseen events. With the help of insurance, large number of people exposed to a similar risk makes contributions to

a common fund out of which the losses suffered by the unfortunate few, due to accidental events, are made good.

Insurance in India

The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries.

A brief history of the Insurance sector

The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta.

Some of the important milestones in the life insurance business in India are:

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. , 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.

Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

Source: www.tourindia.com

INDIAN INSURANCE INDUSTRY: Insurers

Insurance industry, as on 1.4.2000, comprised mainly two players: the state insurers:

Life Insurers:

Life Insurance Corporation of India (LIC)

General Insurers:

General Insurance Corporation of India (GIC) (with effect from Dec'2000, a National Reinsurer)

GIC had four subsidiary companies, namely (with effect from Dec'2000) these subsidiaries have been de-linked from the parent company and made as independent insurance companies. 1. 2. 3. 4. The Oriental Insurance Company Limited The New India Assurance Company Limited, National Insurance Company Limited United India Insurance Company Limited.

The entire general insurance business in India was nationalized by General Insurance Business (Nationalization act), 1972(GIBNA). The Government of India (GOI), through nationalization took over the shares of 55 Indian insurance companies and the undertaking of 52 insurers carrying on general insurance business. General Insurance Corporation of India was formed in the pursuance of Section 9 (1) of GIBNA. It was incorporated on 22 November 1972 under the companies act, 1956as a private company limited by shares.GIC was formed for the purpose of superintending, controlling and carrying on the business of the general insurance. As soon as GIC was formed, GOI transferred all the shares it held of the general insurance companies to GIC. Simultaneously, the nationalized undertakings were transferred to Indian insurance companies. After a process of mergers among Indian insurance companies, four companies were left as fully owned subsidiary companies of GIC (1) National Insurance Company limited (2) The New India Assurance company limited (3) The Oriental Insurance Company limited (4) United India Insurance company limited The next landmark happened on 19 April 2000, when the insurance regulatory and development authority act, 1999 (IRDAA) came into force. This act also introduced amendment to GIBNA and the insurance act 1938. An amendment to GIBNA removed the exclusive privilege of GIC and its subsidiaries carrying of general insurance in India. In November 2000, GIC is renotified as the Indian Reinsurance and through administrative instruction, its supervisory role over subsidiaries was ended. With the general insurance business (nationalization) Amendment Act 2002 came into force from March 21 2002 GIC ceased to be the holding company of its subsidiaries. There ownership was vested with Government of India.

General Insurers

Public
o o o o o

National Insurance New India Assurance Oriental insurance United India Insurance Agriculture Insurance Company of India Ltd Private

o o o o o o o o o o

Bajaj Allianz General Insurance ICICI Lombard General Insurance IFFCO-Tokio General Insurance Reliance General Insurance Royal Sundaram Alliance Insurance TATA AIG General Insurance Cholamandalam General Insurance Export Credit Guarantee Corporation HDFC Chubb General Insurance Star Health and Allied Insurance Company Ltd

The General Insurance Corporation of India

Although efforts were made to maintain an open market for the general insurance industry amending the Insurance Act of 1938 from time to time, malpractice escalated beyond control. Thus, the general insurance industry was nationalized in 1972. The General Insurance Corporation (GIC) was set up as a holding company. It had four subsidiaries: New India, Oriental, United India and the National Insurance companies (collectively known as the NOUN). It was understood that these companies would compete with one another in the market. It did not happen. They were supposed to setup their own investment portfolios. That did not happen either. It began to happen after29 years.

The GIC has a quarter of a million agents. It has more than 2,500 branches, 30million individual and group insurance policies and assets of about USD 1,800 million at market value (at the end of 1999). It has been suggested that the GIC should close 20-25% of its nonviable branches (Patel, 2001). The GIC has so far been the holding company and re-insurer for the state-run insurers. It reinsured about 20% of their business.

Two Committee Reports: One Known, One Unknown Although Indian markets were privatized and opened up to foreign companies in a number of sectors in 1991, insurance remained out of bounds on both counts. The government wanted to proceed with caution. With pressure from the opposition, the government (at the time, dominated by the Congress Party) decided to set up a committee headed by Mr. R. N. Malhotra (the then Governor of the Reserve Bank of India).

Malhotra Committee

Liberalization of the Indian insurance market was recommended in a report released in 1994 by the Malhotra Committee, indicating that the market should be opened for private-sector competition, and ultimately, foreign private-sector competition. It also investigated the level of satisfaction of the customers of the LIC. Curiously, the level of customer satisfaction seemed to be high. The union of the LIC made political capital out of this finding.

The following are the purposes of the committee. (a) To suggest the structure of the insurance industry, to assess the strengths and weaknesses of insurance companies in terms of the objectives of creating an efficient and viable insurance industry, to have wide coverage of insurance services, to have a variety of insurance products with a high quality service, and to develop an effective instrument for mobilization of financial resources for development. (b) To make recommendations for changing the structure of the insurance industry, for changing the general policy framework etc. (c) To take specific suggestions regarding LIC and GIC with a view to improve the functioning ofLIC and GIC. (d) To make recommendations on regulation and supervision of the insurance sector in India. (e) To make recommendations on the role and functioning of surveyors, intermediaries like agents etc. in the insurance sector. (f) To make recommendations on any other matter which are relevant for development of the insurance industry in India.

The committee made a number of important and far-reaching recommendations. (a) The LIC should be selective in the recruitment of LIC agents. Train these people after the identification of training needs. (b) The committee suggested that the Federation of Insurance Institute, Mumbai should start new courses and diploma courses for intermediaries of the insurance sector. (c) The LIC should use an MBA specialized in Marketing (a similar suggestion for the GIC subsidiaries).(c) It suggested that settlement of claims were to be done within a specific time frame without delay. (d) The committee has several recommendations on product pricing, vigilance, systems and procedures, improving customer service and use of technology.(f) It also made a number of recommendations to alter the existing structure of the LIC and the GIC. (g) The committee insisted that the insurance companies should pay special attention to the rural insurance business. (h) In the case of liberalization of the insurance sector the committee made several recommendations, including entry to new players and the minimum capital level requirements for such new players should be Rs. 100 crores(about USD 24 million). However, a lower capital requirement could be considered for a co-operative sectors' entry in the insurance business. (i) The

committee suggested some norms relating to promoters equity and equity capital by foreign companies, etc.

Mukherjee Committee
Immediately after the publication of the Malhotra Committee Report, a new committee (called the Mukherjee Committee) was set up to make concrete plans for the requirements of the newly formed insurance companies. Recommendations of the Mukherjee Committee were never made public. But, from the information that filtered out it became clear that the committee recommended the inclusion of certain ratios in insurance company balance sheets to ensure transparency in accounting. But the Finance Minister objected. He argued (probably on the advice of some of the potential entrants) that it could affect the prospects of a developing insurance company.

Insurance Regulatory Act (1999)

After the report of the Malhotra Committee came out, changes in the insurance industry appeared imminent. Unfortunately, instability in Central Government, changes in insurance regulation could not pass through the parliament.

The dramatic climax came in 1999. On March 16, 1999, the Indian Cabinet approved an Insurance Regulatory Authority (IRA) Bill that was designed to liberalize the insurance sector. The bill was awaiting ratification by the Indian Parliament.

However, the BJP Government fell in April 1999. The deregulation was put on hold once again.

An election was held in late 1999. A new BJP-led government came to power. On December 7, 1999, the new government passed the Insurance Regulatory and Development Authority (IRDA) Act. This Act repealed the monopoly conferred to the Life Insurance Corporation in 1956 and to the General Insurance Corporation in 1972.The authority created by the Act is now called IRDA. It has ten members. New licenses are being given to private companies (see below). IRDA has separated out life, non-life and reinsurance insurance businesses. Therefore, a company has to have separate licenses for each line of business. Each license has its own capital requirements (around USD24 million for life or non-life and USD48 million for reinsurance).

Some Details of the IRDA Bill

On July 14, 2000, the Chairman of the IRDA, Mr. N. Rangachari set forth a set of regulations in an extraordinary issue of the Indian Gazette that detail of the regulation.

Regulations

The first covers the Insurance Advisory Committee that sets out the rules and regulation.

The second stipulates that the "Appointed Actuary" has to be a Fellow of the Actuarial Society of India. Given that there has been a dearth of actuaries in India with the qualification of a Fellow of the Actuarial Society of India, this becomes a requirement of tall order. As a result, some companies have not been able to attract a qualified Appointed Actuary (Dasgupta, 2001). The IRDA is also in the process of replacing the Actuarial Society of India by a newly formed institution to be called the Chartered Institute of Indian Actuaries (modeled after the Institute of Actuaries of London).Curiously, for life insurers the Appointed Actuary has to be an internal company employee, but he or she may be an external consultant if the company happens to be anon-life insurance company.

Third, the Appointed Actuary would be responsible for reporting to the IRDA a detailed account of the company.

Fourth, insurance agents should have at least a high school diploma along with training of 100 hours from a recognized institution. More than a dozen institutions have been recognized by the IRDA for training insurance agents

Fifth, the IRDA has set up strict guidelines on asset and liability management of the insurance companies along with solvency margin requirements. Initial margins are set high (compared with developed countries). The margins vary with the lines of business (for example, fire insurance has a lower margin than aviation insurance).

Sixth the disclosure requirements have been kept rather vague. This has been done despite the recommendations to the contrary by the Mukherjee Committee recommendations.

Seventh, all the insurers are forced to provide some coverage for the rural sector.

(1) In respect of a life insurer, (a) five percent in the first financial year; (b) seven percent in the second financial year; (c) ten percent in the third financial year; (d) twelve percent in the fourth financial year; (e) fifteen percent in the fifth year (of total policies written direct in that year). (2) In respect of a general insurer, (a) two percent in the first financial year; (b) three percent in the second financial year; (c) five percent thereafter (of total gross premium income written direct in that year).

Three days before the deadline that the IRDA had set upon itself (October 25, 2000), it issued three companies with license papers:

(1) HDFC Standard Life. This will be jointly set up by India's Housing Development Finance Company - the largest housing finance company in India and the Scotland based Standard Life.

(2) Sundaram Royal Alliance Insurance Company. It is a partnership created by Sundaram Finance and three other companies of the TVS Group of Chennai (Madras) and the London based Royal & Sun Alliance.

(3) Reliance General Insurance. This company is fully owned by Mumbai based Reliance Industries which has operations in textile, petrochemicals, power and finance industries.

There are three other companies with "in principal" approvals:

(1) Max New York Life. It is a partnership between Delhi based pharmaceutical company Max India and New York Life; the New York based Life Insurance Company.

(2) ICICI Prudential Life Insurance Company. This is a joint venture between Mumbai based Industrial Credit & Investment Corporation and the London based Prudential PLC.

(3) IFFCO Tokio General Insurance Company. It is a joint venture between Indian Farmers' Fertilizer Cooperative and Tokio Marine and Fire of Japan.

To date (end of April 2001), the following companies have thus been granted licenses: ICICI Prudential, Reliance General, Reliance Life, Tata-AIG General, HDFC Standard Life, Royal-Sundaram, Max-New York Life, IFFCO-Tokio Marine, Birla-SunLife, Bajaj-Allianz General, Tata-AIG Life, INGVyasa, Bajaj-Allianz Life, SBI Cardiff Life

INSURER MARKET SHARE (%)

Bajaj Allianz General Insurance Co. Ltd. ICICI Lombard General Insurance Co. Ltd. IFFCO Tokio General Insurance Co. Ltd. National Insurance Co.Ltd. United India Insurance Co. Ltd. The New India Assurance Co. Ltd. The Oriental Insurance Co. Ltd. Reliance General Insurance Co. Ltd. Royal Sundaram Alliance Insurance Co. Ltd Tata AIG General Insurance Co. Ltd. Cholamandalam MS General Insurance Co. Ltd. HDFC-Chubb General Insurance Co. Ltd. Export Credit Guarantee Corporation Ltd.

6.15 8.04 4.00 17.11 17.11 20.15 17.02 0.75 2.17 2.89 1.22 0.89 2.50

Agriculture Insurance Co. of India Ltd.

n.a.

Policies provided by the government

As stated earlier government general insurance companies provide policies in different areas of general insurance. Before going to the policies there are some stats provided by IRDA which show the gross premium underwritten for the month of February and March, 2007.

In these stats there are gross premium underwritten of both private and public general insurance companies. We can see that the gross total premium of public companies is almost double of private insurance companies. In private sector the leader is ICICI- Lombard followed by BajajAllianz and Reliance General, where in Public sector the leader is New India Insurance.

'GROSS PREMIUM UNDERWRITTEN FOR AND UPTO THE MONTH OF FEBRUARY, 2007

Premium 2006-07

Premium 2005-06

INSURER

Growth over the For the Up to the For the Up to the Corresponding month month month month Period of Previous year

Royal Sundaram

48.52

542.66

33.78

407.04

33.32

Tata-AIG

50.68

686.96

49.91

540.16

27.18

RelianceGeneral

91.33

803.59

14.61

144.67

455.46

IFFCO-Tokio

74.39

1070.28

67.96

779.11

37.37

ICICI-Lombard

201.78

2803.34

113.83

1468.47

90.90

Bajaj Allianz

147.18

1621.44

97.87

1164.91

39.19

HDFC CHUBB

13.96

170.17

17.10

177.18

-3.96

Cholamandalam

24.07

282.71

14.87

209.14

35.18

New India

379.45

4505.60

377.34

4198.39

7.32

National

319.76

3428.21

269.06

3201.88

7.07

United India

256.67

3158.48

229.23

2837.74

11.30

Oriental

290.87

3595.88

265.11

3196.32

12.50

Private Total

651.91

7981.15

409.93

4890.68

63.19

Public Total

1246.75

14688.17

1140.74

13434.33

9.33

Grand Total

1898.66

22669.32

1550.67

18324.01

23.71

Source: IRDA

Performance in February 2007

The second month of the detariffed regime in the current calendar year shows that the premium growth rate in February 2007 is an impressive 22.4 percent, though it falls short of the January 2007 growth of 25.6 percent. The new players have achieved a market share of about 35 percent in the February premium G V Rao volumes, though this falls a little short of the 37 percent market share they had recorded in January 2007. The market grew its February renewal premium from Rs.1551 crore to Rs.1899 crore. The established players have contributed Rs.106 crore to the increase, while the new players have added Rs.242 crore. National Insurance, as was seen in its January 2007 performance; is the leading player in its group, adding Rs.51 crore to the accretion. Among the new players, ICICI-Lombard leads with an accretion of Rs.88 crore followed by Reliance with Rs.76 crore. Other players that have made significant accretions to February 2007 premium are:

Bajaj-Allianz with Rs.49 crore, United India with Rs.28 crore and Oriental with Rs.26 crore. New India, as it did in January 2007, has slowed its growth momentum, by keeping its accretion in February to Rs.2 crore; in January 2007 its premium accretion was Rs.8 crore.

The premium growth trends of the first two months of the calendar year show that among the new players the growth pursuing players are ICICI-Lombard, Reliance and Bajaj-Allianz. Among the established players the growth-hunt is led by National Insurance followed by Oriental and United India.

Performance up to February 2007

The premium achievement up to February 2007 is Rs.22, 669 crore, with the established players having recorded Rs.14, 688 crore and the new players Rs.7981 crore. To put this performance in perspective, one should highlight that for the financial year 2005/06 the premium was Rs.20, 360 crore, with the established players having completed Rs.14, 997 crore and the new players Rs.5360 crore. The growth rate up to February 2007 is 23.7 percent, down by 0.2 percent from the level at January 2007.

ICICILombard leads the growth list with a massive accretion of Rs.1334 crore followed by Reliance with Rs.648 crore and Bajaj-Allianz with Rs.456 crore. Oriental with Rs.400 crore and United India with Rs.322 crore are the others on the growth path.

'GROSS PREMIUM UNDERWRITTEN FOR AND UPTO THE MONTH OF MARCH, 2007

Premium 2006-07

Premium 2005-06

INSURER

Growth over the Corresponding For the Up to the For the Up to the Period of month month month month Previous year

Royal Sundaram 57.37 Tata-AIG 54.61 RelianceGeneral 108.64 IFFCO-Tokio 80.05 ICICI-Lombard 200.11 Bajaj Allianz 183.16 HDFC CHUBB 19.99 Cholamandalam 34.74 New India 515.62 National 382.67 United India 349.15 Oriental 344.32 3940.53 347.07 3527.13 11.72 3509.95 316.21 3154.78 11.26 3810.88 350.63 3523.67 8.15 5024.15 534.90 4791.51 4.86 314.59 15.37 222.21 41.57 190.16 28.59 205.77 -7.59 1804.60 119.65 1284.57 40.48 3003.45 123.53 1592.00 88.66 1150.32 116.96 896.11 28.37 912.23 17.66 162.33 461.96 741.56 72.23 612.39 21.09 600.03 52.31 459.35 30.63

Private Total

738.67

8716.94

546.30

5434.73

60.39

Public Total

1591.76

16285.51

1548.81

14997.09

8.59

Grand Total

2330.43

25002.45

2095.11

20431.82

22.37

Source: IRDA

Below are the policies which are provided by the government in context of general insuranceRajrajeshwari Mahila Kalyan Yojana Policy
Policy called Raj Rajeshwari Mahila Kalyan Yojana offering security to women in the age group of 10 to 75 years irrespective of their occupation was introduced w.e.f. 19th October, 1998. Specially designed to protect the welfare of women mainly in rural and semi-urban areas.

Insurer: National Insurance Company End user: Women of rural and semi-urban areas.

Scope of Cover
DEATH 1. Of Husband in case of married women Compensation Rs.25, 000/- to the wife. (Death of married women not covered) 2. 3. Of unmarried Women Rs.25, 000/- to the nominee, legal heir. Death of married woman not covered.

PERMANENT TOTAL DISABLEMENT OF THE INSURED WOMEN ONLY 1. 2. 3. Permanent Total Disablement Rs.25, 000/Loss of one limb of one eye or loss of two limbs or both eyes Rs.25, 000/Loss of one limb/sight in one eye Rs.12, 500/-

DEATH OR DISABILITY BY ACCIDENT WOULD INCLUDE death and P.T.D. arising out of: 1. 2. Slipping /falling off mountainous terrain. Biting by (a) Insects (b) Snakes, (c) Animals

3. Drowning/Washing away by (a) Floods, (b) Landslides, (c) Rockslides (d) Earthquake, (e) Cyclone, (f) Other Convulsions of nature/calamities 4. 5. Murder Terrorist activities

6.

Any other accidental causes

DEATH IN CASE OF WOMEN (it also includes death and or P.T.D.) Caused by 1. 2. 3. 4. 5. 6. Surgical Operations such as Sterilization Caesarian Hysterectomy Cancer Operations arising from removal of breasts Child Birth, not beyond a period of seven days from the date of surgical operations.

Age: 10 years to 75 years Premium Rating @ Rs.15/- per woman per annum for Basic Cover

@ Rs.23/- per woman per annum for Combined cover. Rajrajeshwari Mahila Kalyan Policy is provided by all the subsidiary government companiesOriental Insurance, New India Assurance, United India Insurance, National India Insurance in all the states of the country.

Bhagyashree Child Welfare Policy

Insurer: National Insurance Company End user: Schools, colleges and any other educational institutions can avail of this scheme for the benefit of the girl students studying there.

Policy provides protection to the girl child in the event of death of either or both the parents.

Scope of Cover
1. 2. For child in the age group of 0 to 18 years; and age of parents below 60 years. Fixed sum insured of Rs.25, 000/- premium Rs.15/- p.a.

3. Insurance protection is not for the girl child but for her parents; however, benefit will accrue to the child. 4. Death of parent/s would include death arising out of or traceable to slipping and/or falling from mountainous terrain; biting by insects, snakes and/or animals; drowning or washing away in floods, landslides, rockslides, earthquake, cyclone and/or natural calamities; rape, murder and terrorist activities covered; any other accidental causes; 5. a) b) c) Death of mother of the child caused by surgical operations such as Sterilization Caesarean, Removal of uterus and removal of breast/s due to cancer,

d) At the time of child birth are also covered provided that death occurs within a period of seven days from the date of operation; Death by Rape attempts. 6. In case of death of either or both the parents due to an accident as above, sum Insured will be deposited in the name of the insured girl child and she will get benefit as under:

Age
1 to 5 years

Benefit
Rs. 1,200 p.a.

Payable to
surviving parents or guardian for looking after child the need of the

6 to 11 years Rs. 1,200 p.a.

surviving parent or guardian if the girl is admitted in school and expenses are incurred on her education surviving parent or guardian if the girl child is admitted in school and the expenses are incurred on her education

12 to 17 yrs

Rs. 2,400 p.a.

18 years

Balance in credit to the insured girl child

7. In the event of discontinuation of studies between 6 and 17 years, the Scholarship will not be paid; instead, on completion of 18 years the Balance amount in here credit will be paid to her as lump sum. 8. In the case of death of the girl child before attaining the age of 18 years, Balance amount standing to the credit of the girl child would be paid to the surviving parent or guardian. Note: One girl child below the age of 18 in a family could be covered. Policies can be issued individually or as a group.

UNIVERSAL HEALTH INSURANCE SCHEME For BPL Families

Oriental Insurance Company has been nominated by Govt. of India to provide Universal Health Insurance Scheme to the people who are below poverty line in the States of Delhi, Haryana, Himachal, J & K, Punjab, Rajasthan, U.P., Uttranchal & Chandigarh (UT).

Scope of Cover: This policy has three covers as under:

1. Medical reimbursement: The Policy provides reimbursement of hospitalization expenses uptoRs.30; 000/- to an individual/family with sub limits (Maximum per illness Rs.15000/-. The benefit of the family will operate on floater basis i.e. the total reimbursement of Rs.30; 000/- can be availed of individually or collectively by members of the family. 2. Personal Accident Cover: Coverage for Death of the Earning Head of the family due to accident: Rs.25, 000/-. 3. Disability Cover: If the earning head of the family is hospitalized due to an accident/illness a compensation of Rs.50/- per day will be paid per day of hospitalization up to a maximum of 15 days after awaiting period of 3 days.

Age limit: 3 months to 65 years.

Category Premium Subsidy by Payable GOI For an individual Rs.165/-per annum Rs. 200/For a family up to 5 Rs.248/- per annum Rs. 300/-(Including the first 3dependant children)

For a family up to 7 Rs.330/- per annum Rs. 400/-(Including the first 3dependent children and dependent parents)

Main Exclusions:

1. All pre-existing diseases and diseases contracted during the first 30days from the commencement date of the policy. 2. Some of the diseases such as Cataract, Benign Prostatic Hypertrophy, Hysterectomy, Hernia, Hydrocele, Piles, Sinusitis, and Congenital Internal Disease are not covered in the first year of the policy. 3. Corrective, cosmetic or aesthetic dental surgery or treatment. 4. Cost of spectacles, contact lens and hearing aid.

Claim Settlement: The Claims are to be settled by a Third Party Administrator (TPA) mentioned in the schedule or by the Insurance Company and to be made cashless as far as possible through listed hospitals.

Rural Policies
Rural policies provide wide policies to the rural areas. They cover a vast area of the rural areas. These policies are provided by all the four subsidiary companies and are applicable in all the states of the country. They are as following-

CATTLE INSURANCE

Cattle Insurance was governed under Market Agreement as devised by GIC and the rates, terms, conditions etc. all were applicable to all the four Insurance Companies. However, w.e.f May 2003, it is no longer under Market Agreement. This policy covers indigenous cross bred and exotic cattle owned by private owners, various financial institutions, dairy farms, cooperatives, corporate dairies etc. The word cattle include Milch, Cows and Buffaloes calves and heifers, stud bulls, bullocks and he-buffaloes and mithuns. Age group is specified for all the animals. The evaluation of the animal is done by a veterinary surgeon.

CALF HEIFER REARING INSURANCE SCHEME

The coverage under this policy is meant for calves/heifers from one day to 32 months. The valuation depends upon the age of the cow and is fixed according the age of the calf. All terms and conditions applicable to cattle are applicable here also. Minimum coverage is taken from 12 months however this is not an annual policy.

SHEEP AND GOAT INSURANCE

This scheme is also governed under Market Agreement. Policy provides indemnity to indigenous cross-bred and exotic sheep and goat against death due to accident (including fire, lightening, flood, cyclone, famine, strike, riot and civil commotion) and disease. Earthquake and landslide covers are also provided. Standard and common exclusions apply as per Cattle Policy. Animals are identified by means of small brass buttons ear tags. Animals under scheme category enjoy certain benefits in premium rate and claim procedure.

CAMEL INSURANCE

The camels are covered against death due to accident or disease as per Standard Cattle Insurance Policy. The maximum S.I. is restricted to Rs.3000/-.

PIG INSURANCE

All indigenous, cross-bred and exotic pigs are covered however under scheme category exotic animals are not covered. The age group is from 4 months to 3 years. The coverage is against death due to accident or disease. Exclusions as per Cattle Policy apply here also. Permanent total disablement, breeding and furrowing risks are not covered. Vaccination in applicable diseases is compulsory. Evaluation depends upon the age of the animal. Animals are identified by means of small brass buttons ear tags.

HORSE, MULE, DONKEY, PONY, YAK INSURANCE

The Coverage is as per Standard Cattle Policy. However the age group is restricted to 2 years to 8 years.

POULTRY INSURANCE

This is also governed by Market Agreement, amongst all the four subsidiary companies. The policy shall provide indemnity against death of birds due to accident (including fire, lightning, flood, cyclone, strike, riot and civil commotion and terrorism) or diseases contracted or occurring during the period of insurance. The word Poultry includes layers, broilers and hatchery birds, which are exotic and cross-bred. Indigenous and non-descript birds will not be insured. All

GRAMIN ACCIDENT INSURANCE APPLICABILITY

The Insurance can be granted to any person between the age group of 10 to 70 years irrespective of his occupation, income etc.

BENEFITS (A) Death due To Accident Rs. 10,000/(B) Total irrecoverable loss of use of 2 limbs or Rs. 10,000/- one eye and one limb due to accident (C) Total irrecoverable loss of one eye or one limb Rs. 5,000/(D) Permanent total disablement due to accident Rs.10, 000/-

EXCLUSIONS Company shall not be liable for:

i. Compensation under more than one of the sub clauses (A), (B), (C) & (D) in respect of same injury/disablement.

ii. Payment of compensation in respect of injury/disablement directly or indirectly arising out of or contributed to by or traceable to any disability existing on the date of issue of the policy. iii. Death/injury/disablement of the insured from: (a) Intentional self injury, suicide or attempted suicide. (b) Whilst under the influence of intoxicating liquor or drugs. (c) Directly of indirectly caused by insanity. (d) Arising or resulting from the insured committing any breach of law with criminal intent. iv. Compensation arising out of war and allied perils. v. Death or bodily injury arising out of ionizing radiation or contamination by radioactivity from any source whatsoever. Policy is available on long-term basis also and is also subject to group discount and long-term discount.

JANATA PERSONAL ACCIDENT POLICY

Brief Description:
We all in our day to day life are exposed to the risks of accidents. Despite all possible precautions accident do occur. This may result into disablement or loss of limbs or sometimes even death. To give relief to the insured or its family, this scheme was devised.

Covered Risks:
This policy provides compensation in the event of death or permanent disablement or loss of limbs or sight in eyes.

Major Exclusions:
Intentional self injury, suicide or attempted suicide, Accident while the insured in under the influence of intoxicating liquor or drugs, loss caused by insanity, loss due to breach of law with criminal intent, War and allied perils, nuclear radiation.

HUT INSURANCE

APPLICABILITY This insurance applies only to those huts used for dwellings and constructed in rural areas with financial assistance from Banking/ Cooperative / Government Institutions. It can also apply to a selected area or cluster of huts for which proposal should be referred to H.O.

SCOPE OF COVER Against loss or damage due to fire, (including fire resulting from explosion and short circuiting), lightning, and explosion of boiler or gas used for domestic purpose only, earthquake, flood, inundation, storm, tempest, cyclone and other allied perils, riot and strike damage, malicious damage, aircraft and impact damage.

SUM INSURED The maximum sum insured will be Rs.6000/-of which Rs.5000/- can be for structure and Rs.1000/- for contents. However, it should be noted that the sum insured on the structure should be so fixed that it is not more than 20% of the financed or subsidy amounts or market value of structure whichever is less, not exceeding Rs.5000/-.

PREMIUM Rs.3/- per thousand on the sum insured. However, under a policy the premium should not be less than Rs.30/-

Above mentioned rural policies are designed by government to cover the risk of the rural population. These policies are specially designed to provide the risk coverage in all the states of the country. There is a wide range of rural policies which are offered by Oriental Insurance, New India Assurance, National Insurance & United India Insurance.

KISAN CREDIT CARD-PAIS

This is a Personal Accident Insurance Master Policy covering all the Kisan Credit Card holders. This will include the holders of KCC issued by the District Central Co-op. Banks, RRBs and commercial Banks throughout India. This scheme will cover all the KCC holders against Death or Permanent disability resulting from accidents caused by external, violent and visible means and occurring within the geographical jurisdiction of India. This policy will cover the KCC holders up to the age of 70 years and whose names are declared by the Banks and in respect of whom the premium is paid by the Bank to the Insurance Company for a maximum benefit of Rs.50, 000/- in case pf (i) Accidental Death, (ii) Permanent total disability (iii) Loss of two limbs or two eyes or one limb and one eye and Rs.25, 000/- in case of loss of one limb or one eye (subject to exclusion).

The Master Policy shall remain valid for a period of three years effective from April 2001 and any modification/alteration shall be made at the end of three years after review of the premium and claims experience. If the claim experience exceeds 70%, the premium shall be suitably loaded. The policy can be issued for one year or three years period by charging Rs.15/- for annual policy and Rs.45/- for three years period. Service Tax is waived for this policy. The participating Banks will pay premium to designated Insurance Company on Flagship Company basis.

Health policies
Insurer: General Insurance Corporation through its four subsidiaries: Oriental Insurance, New India Assurance, National Insurance Company, United India Insurance.

Group Mediclaim Policy

Brief Description: Mediclaim Insurance is a cover which takes care of medical expenses following Hospitalization/Domiciliary Hospitalization of the Insured in respect of the following situations: (A) In case of a sudden illness (B) In case of an accident (C) In case of any

surgery which is required in respect of any disease which has arisen during the policy period. The major benefit for taking a Group Mediclaim policy is that the insured gets a Group discount; hence the premium per person is lower.

Covered Risks:
This cover is a hospitalization cover and reimburses the medical expenses incurred in respect of covered disease /surgery while the insured was admitted in the hospital as an in patient. The cover also extends to pre- hospitalization and post- hospitalization for periods of 30 days and 60 days respectively

Major Exclusions:
Any pre-existing disease, any expense incurred during first 30 days of cover except injury due to accident, all expenses incurred in respect of any treatment relating to pregnancy and child birth. Treatment for Cataracts, Benign prostatic hypertrophy, Hysterectomy, Menorrhagia or Fibromyoma, Hernia,Fitula of anus,Piles, Sinusitis, Asthma, Bronchitis, All Psychiatric or Psychosomatic disorders are excluded from the scope of the cover.

Personal Accident - Group

Brief Description:
We all in our day to day life are exposed to the risks of accidents. Despite all possible precautions accidents do occur. This may result into disablement or loss of limbs or sometimes even death. To cater to this need insurers has devised an insurance cover, known as Personal Accident Insurance. This policy provides compensation in the event of insured sustaining injuries, solely and directly from an accident caused by violence, visible and external means, resulting into death or disablement be it temporary or permanent. This policy is also available to a Group of Persons and is known as Group Personal Accident Policy. This policy can be granted for restricted hours of Duty and not for all the 24 hours of the days and nights) at a reduced premium also. The Central Government bears the entire premium cost in respect of the scheme. During the year 1998-99, a total number of 8,128 claims involving an amount of Rs. 1.84 crores were settled.

Covered Risks:
This policy provides compensation in the event of insured sustaining injuries, solely and directly from an accident.

Major Exclusions:
Intentional self injury, suicide or attempted suicide, Death or disablement resulting from child birth and pregnancy; Accident while the insured is under the influence of intoxicating liquor or drugs; War and allied perils.

Jan Arogya Bima Policy

Brief Description:
This policy provides for Hospitalization and Domiciliary hospitalization for a premium as low as Rs 70/- for a adult male or female and Rs 50/- for each dependent son/daughter not exceeding 25 years of age. The benefits are up to Rs 5000/- per person per annum without any inner limits. This insurance is available to persons between the age of 5 years and 70 years. Children between the age of 3 months and 5 years of age can be covered provided one or both the parents are covered concurrently. The scheme which is primarily meant for the larger segment of the population, who cannot afford the high cost of medical treatment, was introduced w.e.f. 12th August, 1996.

Covered Risks:
This cover is a hospitalization cover and reimburses the medical expenses incurred in respect of covered disease /surgery while the insured was admitted in the hospital as an in patient. The cover also extends to pre- hospitalization and post- hospitalization for periods of 30 days and 60 days respectively

Major Exclusions: Any pre-existing disease, any expense incurred during first 30 days of cover except injury due to accident, all expenses incurred in respect of any treatment relating to pregnancy and child birth. Treatment for Cataracts, Benign prostatic hypertrophy, Hysterectomy,

Menorrhagia or Fibromyoma, Hernia,Fitula of anus,Piles, Sinusitis, Asthma, Bronchitis, All Psychiatric or Psychosomatic disorders are excluded from the scope of the cover.
Health policies are one of the most popular policies of government general insurance sector. These policies provide a big amount of premium to the insurance companies. Health insurance as it is different from other segments of insurance business is more complex because of serious conflicts arising out of adverse selection, moral hazard, and information gap problems. Health insurance is typically annual and has to be renewed yearly. Policy, which is not renewed in time lapses and a new policy, has to be taken out.

Travel Insurance Policies Suhana Safar (Domestic Travel policy)

Suitability This policy is suitable for persons who go on a holiday with family. The policy is also useful for employees who avail leave travel schemes provided by their employers. Salient Features The policy is a Personal Accident policy covering accident benefits for a capital sum insured of Rs.1 lakh for each member of the family while in travel within the country. The plan covers domestic travel by Rail, Road, Waterways or Air within the country for a period of 60 days. The plan also covers travel by use of own conveyance. The policy covers loss or damage (due to fire, Storm, tempest, hurricane, flood, inundation, riot, strike, terrorism, malicious damage, accident, theft or burglary) of accompanied baggage up to a certain limit. The compensation provided for loss of each article is limited to Rs.500, unless specifically declared. The policy also provides for emergency expenses up to Rs.1000 incurred in connection with an accident.

Premium No. of persons Premium in Rs. 1 80 2 140 3 190 4 240 5 280 6 320 7 360 8 400

In case of more than 8 persons, an additional premium @ Rs.40 per head. Service tax @ 5% extra.

Requirements Completed proposal furnishing the date of journey in particular. Value of each piece of baggage should be declared, if same exceeds Rs.500. Recommendations While in travel, one is more exposed to personal accidents, and he/she can be covered for Rs.1 lakh sum insured, without reference to any other Personal Accident policies; age or income.

Overseas Mediclaim Policy

Suitability Any Indian resident traveling abroad can take this policy. In some countries however, it is compulsory for visitors to have medical insurance cover. A corporate frequent traveler can take a single policy for 1 year Salient Features There are two types of plans under the Overseas Mediclaim Policy: 1. Overseas Mediclaim Insurance -A(World wide travel excluding USA and Canada) 2. Overseas Mediclaim Insurance - B (World wide travel including USA and Canada.) 3. Overseas Mediclaim Insurance - E (For corporate Frequent Traveler providing world wide coverage)

OMP -E is an annual policy issued for one year. The insured is covered for a maximum of 180 days abroad, irrespective of number of visits. However maximum number of days under each visit is limited to 60 days. Requirements Completed proposal form after passport and Visa (where necessary) is obtained in case of the proposer being hypertensive, ECG reports from cardiologist should be filed and basing on the same, the pre-existing condition may be excluded from the scope of benefits Recommendations It is mandatory in some Western countries for a visitor to their country to be covered by a Health Insurance Policy. In its absence, he may run the risk of repatriation or quarantining in the airport itself

Medical treatment is expensive overseas and can become a major financial problem in case of any emergency/ accident

For a small premium paid in Indian currency, payment of claim in foreign currency of the country in which a claim arises is disbursed. Besides, the foreign currency allowances allowed by the host Country can be conserved as the premium is paid in Rupees in home country

The Claim procedure is very simple. The policy document that the insured carries with him contains full details of the claim settling agencies. The insured has to just get in touch with the Agency and they take over the responsibility of dealing with the respective Hospitals/Authorities who then undertake to settle the bills directly with the hospitals. All of the above policies are implemented in all the states of the country and are determined by IRDA. All the four subsidiary companies of GIC- Oriental insurance company ltd., New India Assurance company ltd., United India Insurance Corporation ltd. and National Insurance Company ltd. follow the schemes that are determined by the IRDA.

Pravasi Bharatiya Bima Yojana, 2006

Pravasi Bhartiya Bima Yojana (PBBY-2003), which was notified on November 13, 2003 as a compulsory Insurance Scheme for the emigrants going abroad for employment, has now been upgraded as the Pravasi Bhartiya Bima Yojana, 2006 (PBBY-2006) to provide broader coverage to the emigrant workers. The PBBY, 2006 has been notified on January 25, 2006, and it has come into effect from February 1, 2006. SALIENT FEATURES OF THE PRAVASI BHARTIYA BIMA YOJANA, 2006
o The Pravasi Bhartiya Bima Yojana, 2006 provides for an insurance cover of a minimum sum of Rs. 5.00 lakhs payable to the nominee/legal heir in the event of death or permanent disability of any Indian emigrant who goes abroad for employment purpose after obtaining emigration clearance from the concerned Protector of Emigrants (POE). In the case of death, besides the cost of transporting the dead body, the cost incurred on the one-way airfare of one Attendant shall also be reimbursed by the Insurance Company. If a worker is not received by the employer on his arrival to the destination abroad or there is any substantive change in Employment Contract to his disadvantage or if the employment is pre-maturely terminated within the period of employment for no fault of the emigrant, the Insurance Company shall reimburse one way economy class airfare provided the grounds of repatriation are certified by the concerned Indian Mission/Post. In cases where the repatriation is arranged by the Indian Mission/Post, the Insurance Company shall re-imburse the actual expenses to the concerned Indian Mission/Post. The Insured person shall be reimbursed actual one way economy class airfare by the Insurance Company if he falls sick or is declared medically unfit to commence or continue working and the service contract is terminated by the Foreign Employer within twelve months of taking the insurance. The Insurance Policy shall be valid for a minimum period of two years or the actual period of contract, whichever is longer.

o o

o o

The Insurance Policy shall also provide medical cover of a minimum of Rs. 50,000/- as cashless hospitalization and/or reimbursement of actual medical expenses of the insured emigrant workers on grounds of accidental injuries and/or sickness/ailments/diseases occurring during the period of insurance whether in India or in the country of his employment. An insured person shall be covered for a minimum sum of Rs. 25,000/- in connection with the legal expenses incurred by him in any litigation relating to his/her employment. The Insurance Policy shall also provide maternity benefits, subject to a minimum cover of Rs. 20,000/- in case of women emigrants. In case of medical treatment in the country of employment, the maternity benefits would be provided if the requisite documents are certified by the concerned Indian Mission/Post. The family of emigrant worker in India consisting of spouse and two dependent children up to twenty one years of age shall be entitled to hospitalization cover in the event of death or permanent disability of the insured person for a maximum amount or Rs. 25,000/- per annum. The Insurance Companies shall charge fair and reasonable premium. Service tax will be charged as applicable.

o o

List of Approved Companies

Company The United India Insurance Co. Ltd. The Oriental Insurance Co. Ltd. The New India Assurance Co. Ltd. The National Insurance Co. Ltd.

Date of approval 13.02.2006 13.02.2006 16.02.2006 28.02.2006

Beneficiaries of Pravasi Bharatiya Bima Yojana (PBBY) 2003 can also opt for Pravasi Bhartiya Bima Yojana, 2006 Going through the state government general insurance there are only four states where state government is also providing the insurance policies. These states are Maharashtra, Kerala, Gujarat and Rajasthan. In all the other states the general insurance government policies are provided by the GIC and its four subsidiary companies.

Success of the above policies

In the non-life segment, the established players control 65% of the market. So it is their monthly performance that determines how the market as a whole would perform.

In Accident Insurance Business, private sector players have almost 53% market share with ICICI Lombard as the lead player. Public sector players constitute about 47% market value with New India as the leading player followed by United India. Indian general insurance companies in government sector are providing better policies to the customers. Many of the policies are very popular among the customers. Policies like Raj Rajeshwari Mahila Kalyan Yojana Policy, Bhagyashree Child welfare Policy, National swasthya bima policy are a big fund of money generation for insurance companies. These policies are fully supported by the government. In different states of the country various type of policies are popular and they have a different percent of share in overall income of Indian general insurance sector. All of these policies

are successfully implemented in all the states of the country. These policies are specially designed to provide risk assurance to the policy holders. In union territories also these policies are successfully implemented and working with a good profit.
These policies provide a helping hand to the person who faces problem due to some unforeseen event or accident. Going through the marketing aspect the insurance company has to prepare the product in determining its success in the market. General insurance industry records 24.1% growth

The general insurance industry has recorded a 24.1% increase in premium collection at Rs 16,577.7 crore in the first eight months of the fiscal against Rs 13,350.1 crore during same period previous year, according to data compiled by Insurance Regulatory and Development Authority (IRDA). The market share of new players continued to stay at 35% in the current fiscal, up from 26% last year. While 35% was contributed by the eight private players and remaining 65% came from the four public sector players New India, Oriental Insurance, National Insurance and United India. Market leader New India grew business by 10% to Rs 3,337.1 crore in April-November, the highest premium collection by any company during the period. Clocking 13.6% growth, Oriental Insurance collected Rs 2,647.8 crore in premium, while National Insurance witnessed a mere 5.06% growth in business at Rs 2,311.6 crore during the period. United India increased premium collection by 12.3% to Rs 2,093 crore.
GENERAL insurance industry grew by 16% in 2005-06 as private insurers continued their robust performance, while public sector players New India Assurance and Oriental Insurance improved their show. Despite continuous fall in business of government owned National Insurance, the 12 non-life insurers collected Rs 20,378 crore in first year premium in the last fiscal compared to Rs 17,531 crore collected in 2004-05 , according to data compiled by regulator IRDA. New India Assurance collected Rs 4,762 crore in premium and continued to lead the non-life sector by cornering 23.36% of the market. National Insurance was at the second spot by collecting Rs 3,524 crore in premium, a decline of 7%, but had a market pie of 17.29. Oriental Insurance mopped up Rs 3,518 crore in premium income after logging 16.6 % growth in business to corner a market share of 17.26%. Another PSU insurer United India grew business by a modest 6.8% to collect Rs 3,147 crore in premium and had 15.44% of the market.

The government policies are popular among the masses especially in the rural areas. The four subsidiary companies of government are one of the leading one in general insurance sector. Government companies gather a big share in the market. In this context health policies are one of the most popular policies. These policies are implemented in all over India. Health is the biggest source of premium in the insurance sector.

1. Govt. business is a big ticket since it involves the masses. With almost negligible social security level prevalent in our country, these are generally welfare measures adopted by the states for a section of the population e.g.

Below Poverty Line, Artisans, employees etc. States being the largest employment generators, the no. of employees is substantial and therefore, the volume of business is huge. 2. The policies provided by the government are basically provided as a source of political mileage for the party in power to convince the mass. 3. Since these policies are provided by the government and basically at the national level ,so they cover a wide area with a huge population which gives the policies a better stage to explore and cover a big part of the market.

Challenges and Weak points of Government policies

The policies which are offered by the government are being implemented from several years. But after the liberalization the scene is changing. Now new companies are entering the general insurance sector, most of them come from large corporate groups. Due to the entry of these private sector units the government policies are loosing there depth in market and day-by-day they have to face challenges from there strong competitors. The highest paid employees of the public sector, the estimated half-a-million employees of the nationalized insurance companies, are characterized by small productivity, utter ignorance of the basic principles of the insurance business, endemic corruption, gross indiscipline and sheer laziness. Dominating the inevitably weak management of the nationalized insurance companies, the militant and strongly unionized employees of the nationalized monopoly insurance companies have transformed Indian insurance from volume-driven into class-based business. The government insurance companies, despite meeting their social objectives of going into the deepest interiors of the country, have lagged behind in meeting customer expectations in products and services. There are some challenges which are faced by the Government general insurance policies are-

Strong Competitors- The biggest challenge faced by the government policies are that they have to compete from the competitors who enough strong. ICICI Lombard, Reliance General Insurance, Kotak Insurance and some more insurance companies are offering the policies which are very effective in comparison to the government policies. An industry where everyone focuses on increasing market share and aggressiveness greatly increases pressure on profitability. The presence of a host of new players in the sector has resulted in a shift in approach and the launch of innovative products, services and value-added benefits. Foreign majors have entered the country and announced joint ventures in non-life areas. Major foreign players include, Aviva, Tokyo Marine, Allianz, Lombard General, AIG, AMP and Sun Life among others. Innovative products, smart marketing and aggressive distribution have enabled fledging private insurance companies to sign up Indian customer faster than anyone expected. According to estimates, private insurance companies collectively to have a 10% share of the non-life insurance market.
Weak IT infrastructure- Many a times the insurance claims are rejected due to some small technical reasons. This leads to disputes. Most of the time the conditions and various points included in insurance policy contracts is not negotiable and these are binding on consumers. There is no analysis on what fair practice is and what unfair practice is. Given that insurance companies are large and almost monopoly setting the consumers is treated as secondary and they do not have opportunity to negotiate the terms and conditions of a contract. Many times insurance companies do not strictly follow the conditions in all cases and this create confusion and disputes. Negligence of rural sector- Rural India is a target market for many players in the financial sector, and insurance companies are no exception. While public sector insurance companies boast that they have already captured this area, the extent of penetration of the insurance majors into rural India is not yet clear. Rural market in India is neglected as most of the policies are designed to meet the needs of the urban population and they are not properly promoted in rural market. Most products being offered today to rural market are very often urban products, offered to the rural market with some tweaking in features. There is major challenge for insurance companies and policy makers to increase the awareness levels among rural population, so that they may view insurance policies as a risk management tool. Traditionally rural households have addressed their risk protection in various forms: from the joint family, investing in gold, land and other assets. Most insurance policies that rural customers are familiar with have been sponsored or subsidized by the government, the legacy of this past is that rural people do not fully see insurance as a risk sharing mechanism through contributions in premium. There is need for sufficient investment by public institutions to bring about a change in the perception of Insurance as a risk mitigation instrument and enhance the awareness levels on various insurance products and how they work in principle. The field staff and the agents of the GIC and its four wholly owned subsidiary companies have seldom bothered to venture out into the rural hinterland to sell crop or any other personal line insurance. Given the woeful lack of penetration of the rural market by the GIC subsidiaries, it is hardly surprising that a growing number of farmers across the country are resorting to the extreme remedy of suicide when their usually uninsured crops fail.

High rate of premium- Most of the policies that are offered by the government are made for the middle class group but the premium rates are quite high which do not meet the affordability of the customers. Low premium rates in one area necessitate higher premium elsewhere. Returns are low- There are number of government policies provided in market which are said to be designed for the welfare of the customers and often it is claimed that these policies

are made to make the life easier of the customers but most of the time the returns is not provided to them in way they are expressed. In most of the cases the returns are low which do not meet the expectations of the customers. Insurance awareness- In this era of globalization where in other countries insurance is a big source of financial structure, in our country there is still not much awareness about the insurance policies specially of general insurance policies. In India the general public is not much aware of different general policy and there terms. In villages and small town there is need of creating awareness to expand the general insurance sector specially government business. Political view- Most of the policies that are provided by the government are implemented to gain political mileage for the party in power. These policies are implemented but they do not provide the cover most of the time as they are promised. There is a need for improvement here. The customers must be provided by the policies which is really issued for there welfare and also for the welfare of the society. Corruption is also a big obstacle in the government insurance business. Above are the challenges which are coming in way of the government general insurance business. After the liberalization there can be seen an intense decrease in the profitability and business of the government general insurance policies. The new private companies are providing the policies which appear to be a big threat to the government policies, so there is need to face the above challenges and try to overcome them to regain its position in the insurance sector. Cross Border Experience Cross-country experience shows that nowhere in the world have the entries of foreign firms threatened the position of domestic companies. Whether it is Malaysia, where the insurance sector has been open for more than 50 years and foreign companies account for about 10 per cent of market penetration or it is Indonesia, Thailand, China or the Philippines, where the market has been opened more recently, the total market share of foreign companies is less than 10 per cent except in Indonesia where it is about 20 per cent. Closer home, we have the experience of the banking sector where despite the presence of 42 foreign banks, their share in total banking assets is less than 10 per cent. Today hardly 20 per cent of the population in India is insured and insurance premium (life as well as non-life) account for just 2 per cent of GDP as against the G-7 average of 9.2 per cent. Consequently, the fear that new companies will displace public companies is misplaced. There is room for more for not only the existing companies but also for any number of competitors. In China, insurance premium accounted for just over 1 per cent of China's GDP in 1995 but in the four years since the market has been liberalized (albeit partially), spending on insurance has grown at a compound annual rate of 33 per cent. It is not just foreign companies alone that have grown but also the national PICC as well. The story is no different in S Korea. There, the opening of the sector saw the Big Six domestic players, who initially controlled the entire market, increase their business from 7 to 37 trillion won by 1997. Meanwhile foreign companies were not able to capture more than a miniscule 0.7 per cent of the market.

OpportunitiesInsurance sector is a major contributor to the financial savings of the household sector in the country, which are further channelized into various investment avenues. As per the Annual Report 2003-04 of IRDA, contribution of insurance funds to the financial savings was 14.9 per cent in 200304, viz 2.2 per cent of the GDP at current market price. The premium underwritten has grown from Rs 45,677.57 crore in 2000-01 to Rs.83, 645.11 crore in 2003-04. After liberalization of insurance sector, the private insurers have introduced innovative product and tailor made products which are absolutely sit to rural population. Efforts at increasing consumer awareness and putting the regulatory framework for protection of policyholders interest have been made both the industry and regulatory level. Global market conditions have also resulted in driving down premium rates/charges in respect of certain products and in improving the quality of services offered by the insurer. Finally, insurance sector has been penetrating in India, thus the proposed seminar has quite relevant to the society. Indian insurance is on the threshold of deep and fundamental changes. Floodgates of competition opened up by the privatization of insurance industry did throw a challenge to the well-protected nationalized sector and it seems they have picked up the gauntlet. GIC, both is trying to reposition them by having re-engineering done on the structure and operations of their respective organizations.

It must be emphasized that the opening of the insurance market is far from a bad thing for nationalized insurers. With a strong presence, a wide network and considerable brand equity, they are in a good position to tap the very same segments profitably, while improving their product and service offerings. The Indian company should Leverage information technology to service large numbers of customers efficiently and bring down overheads. Technology can complement or supplement distribution channels cost-effectively. It can also help improve customer service levels considerably. Besides this, other areas can be focused to grow and survive in the Indian Market Understanding Customer needs: Use data warehousing, management and mining to gauge the profitability and potential of various customer and product segments and ensure effective cross selling. Understanding the customer better will allow insurance companies to design appropriate and-customized products, determine pricing correctly and increase profitability. High-level Training and Development: Ensure high levels of training and development not just for staff but also for agents and distribution organizations. Existing organizations will have to train staff for better service and flexibility, while all companies will have to train employees to cope with new products and an intensive use of information technology. Alliance&Tieup: The importance of alliances and tie-ups means that companies will have to integrate related but separate providers into their systems to ensure seamless delivery.

Agent Relationship: Build strong relationships with intermediaries such as agents. Market Segmentation: They must segment the market carefully to arrive at the appropriate products and pricing and should cater the needs of every individual. Revamped Marketing Strategy: Worldwide, insurance products move along a continuum from pure service products to pure commodity products then they could be sold through the medical shops, groceries, novelty stores etc. Once commodization, popularity and awareness of the products are attained then the products can move to remote channels such as the telephone or direct mail. In the UK for example, retailer Marks & Spencer now sells insurance products. At this point, buyers look for low price. Brand loyalty could shift from the insurer to the seller. Trust and Faith: Being government owned subsidiary, people of India have real faith and are confident in parting their valuable savings with Nationalized Insurance Companies. So, there is a big opportunity for the government companies to regain their goodwill and reproduce their policies in the interest of the general public.

Further Offerings to be madeThere exists huge scope of investment in the insurance sector in India. India has an enormous middle-class that can afford to buy life, health and disability and pension plan products. Further, insurance is one of the most important tax saving instrument in the country.
The changing scenario, the strategy of the government owned four public sector General Insurance Companies is crucial to the market as the four public players have a major hold. For instance, the four players collected a premium of Rs 1427.9 crores. GIC has already identified the areas that need to be activated and given a shape through the four subsidiary companies. Foremost is the area of providing health insurance services. A change in the GIC Act will enable the corporation to float a joint venture company for health insurance. Other areas that the GIC is looking at are savings-linked insurance products and use of alternate distribution channels including bancassurance. Also in progress is the co-ordination of all foreign operations of the group. Banc assurance Bancasssurance has a bright future for the distribution of insurance products. So far banc assurance has grown fairly well with banks taking advantage of their extensive branch networks that give the insurers access to a large client base. In order to participate in banc assurance activities, a number of banks have registered as corporate agents. This means that they may distribute insurance products for an insurer through their extensive branch networks in return for the payment of commission. So government has a better option to widen its service area and product efficiency. Insurer Bank

Direct Marketing and Internet Until recently most direct business was promoted by development officers who were remunerated by insurers partly by salary and partly by commission. These officers were being phased out in anticipation of brokers and other intermediaries taking over much of their business. Out of a total population of 1.07 billion, just over 21 million people are estimated to be Internet users in India. Most insurers do not regard the Internet as a major distribution channel for some while. This area is one of the most demanding areas in the insurance industry, which is one of the basic reason of the decline of government policies. So, there is a need of bringing the net based work system in the business through which there a lot can be offered in the general insurance sector.

Marketing strategies to compete against private players The biggest reason for the decline of the government general insurance business is the marketing strategies applied by the private players. These companies they are working with either foreign partners or with large corporate, so they know how to sell their products in an effective way to the customers. These companies produce the policies with an attractive offer, a better market coverage, advanced use of IT, a wide nation-wide network. These are some of the marketing strategies that are applied by the private insurance companies; government should work in these areas which is also the demand of the time. In this era customers need the product which is presented to them in an attractive way and also stands on their expectations. Most of the policies that are provided by the government are not implemented in a better way. But the term of effective marketing is one of the biggest factor and area of improvement in government business.

Capturing the scope in Health Insurance Health insurance expenditure in India is roughly 6% of GDP, much higher than most other countries with the same level of economic development. Of that, 4.7% is private and the rest is public. What is even more striking is that 4.5% are out of pocket expenditure (Berman, 1996). There has been an almost total failure of the public health care system in India. This creates an opportunity for the new insurance companies. Thus, private insurance companies will be able to sell health insurance to a vast number of families who would like to have health care cover but do not have it. In India, approximately 80% of the total health expenditure comes from self-paid category as against governments contribution of 20-30 %. A majority of private hospitals are expensive for a normal middle class family. The opening up of the insurance sector to private players is expected to give a shot in the arm of the healthcare industry. Health insurance will make healthcare affordable to a large number of people. Currently, in India only 2 million people (0.2 % of total population of 1 billion), are covered under Mediclaim, whereas in developed nations like USA about 75 % of the total population are covered under some insurance scheme. General Insurance Company has never aggressively marketed health insurance. Moreover, GIC takes up to 6 months to process a claim and reimburses customers after they have paid for treatment out of their own pockets.

General insurance companies of public sector are planning 15-20% increase in the premiums of health insurance policy. The increase in the premium will depend on the age of the person seeking the insurance cover.

Widen the possibilities in rural policies A major issue is that of product innovation for rural contexts. Non-life general insurance has products to suit crop, agricultural equipment, weather risks and so forth. However, many of these products are on an experimental basis and not pure commercial products. Rural India is a target market for many players in the financial sector, and insurance companies are no exception. Public sector insurance companies boast that they have already captured this area; the extent of penetration of the insurance majors into rural India is not yet clear. Most of the policies are said to help the rural customers but there is still no improvement in the rural situation. So, in this area there is a need of making the policies which are realistic in the rural conditions and are made to meet the needs of the customers in rural area.

ConclusionThe problem with the public sector today is that this is doing a lot of third party insurance, which is a loss making business. In this era of globalization there is a basic need of products which are the most profitable and more friendly to the customers. There are many policies which are provided by the government and very successful among the masses. But still in India about 80% of human beings and major natural resources have yet not been insured in globalization era. Floodgates of competition opened up by the privatization of insurance industry did throw a challenge to the well-protected nationalized sector and it seems they have picked up the gauntlet. GIC is trying to reposition itself by having re-engineering done on the structure and operations of their respective organizations. Over the past three years, around 40 companies have expressed interest in entering the sector and many foreign and Indian companies have arranged anticipatory alliances. The threat of new players taking over the market has been overplayed. As is witnessed in other countries where liberalization took place in recent years we can safely conclude that nationalized players will continue to hold strong market share positions. Existing government players will have to explore new distribution and marketing channels. Potential buyers for most of this insurance lie in the middle class. Government insurers must segment the market carefully to arrive at appropriate products and pricing. Recognizing the potential, in the past three years, the nationalized insurers have already begun to target niches like pensions, women or children. So, this can be said that there is a lot of scope for the government insurance policies in country today and also there can be offered a lot which will help in maximizing the profit and market share of these policies.

Bibliography:
Directorate of Insurance (Maharashtra) Mr. L.M.Khan (Director) General Insurance Corporation of India www.google.com
www.oicl.co.in www.uiicl.com www.nicl.co.in www.irda.com www.bimaonline.com www.tourindia.com

moia.gov.in
www.ciionline.org

LAW RELATING TO GENERAL INSURANCE The Insurance act 1938 was a well thought out legislation and was passed to perform the control of working and activities of the companies carrying on the business relating to life, marine, fire and accident.

but the act has seen many amendments since it was passed required from experience in the implementation of the act .in 1963, the marine Insurance act was passed to regulate the contact of marine Insurance .

in 1971 the government nationalized the Insurance business and passed a General Insurance business (nationalization) act in 1972.a provision who made in the 1972 act relating to

General Insurance (fire, marine, and miscellaneous) business being taken over by the central government.

THE NATURE OF RISK GENERAL INSURANCE GOVERNMENT OF KERALA DEPARTMENT OF EDUCATION SCERT ---2005-06 FIRST YEAR VOCATIONAL HIGHER SECONDARY STATE COUNCIL OF EDUCATIONAL RESEARCH & TRAINING VIDYABHAVAN, POOJAPPURA, THIRUVANANTHAPURAM -12, KERALAGENERAL INSURANCE FIRST YEAR Prepared by: State Council of Educational Research & Training (SCERT), Vidyabhavan, Poojappura, Thiruvananthapuram -12, Kerala E-mail: scertkerala@asianetindia.com Type setting by: SCERT Computer Lab Government of Kerala Department of Education SCERT -- 2005-06Preface Dear Teachers, The activity based, process oriented and learner-centred pedagogy

is being introduced in the Vocational Higher Secondary Classes. It becomes necessary to make significant changes in the learning p r o c e s s a s w e l l a s i n e v a l u a t i o n s y s t em f o r i t s s u c c e s s f u l implementation. Insurance is a service oriented subject. It is a fast developing field of education which requires a learning methodology suitable in accordance with the changing situaions. The learners may have to undergo different learning activities based on practical skills and knowledge to cope-up with the requirements of the hour. This sourcebook has been prepared in such a way to help the teacher to provide suitable learning activities for effective learning. The success of the approach depends upon the vision and commitment of the teacher. For the preparation of the sourcebook, SCERT Kerala has drawn the expertise of eminent personalities from the field of commerce as well as the pedagogic and expertise of Vocational Higher Secondary teachers. This book provides guidance on theor e t i cal and prac t i cal aspe c t s of the subj e c t as we l l as opportunities for planning the activities needed for the transaction of the curriculum and the evaluation process. I solicit your comments and suggestions for the improvement of the sourcebook. With regards, Dr. E. Valsala Kumar Director SCERT, Kerala Thiruvananthapuram 25.11.2005Contents

Part I Approach .................................................. 5 Learning Strategy ......................................... 1 7 Curriculum Objectives & Syllabus .................... 24 Planning ................................................... 28 Evaluation .................................................. 32 Part II Unitwise analysis Unit 1 The Nature of Risk ............................ 48 Unit 2 Introduction to Insurance ................... 52 Unit 3 Classes of Insurance .......................... 5 7 Unit 4 Principles of Insurance ....................... 62 Unit 5 Underwriting and Claims .................... 69 Unit 6 Insurance Documentation and Publicity .. 7 3 Unit 7 Insurance Market Place ..................... 7 7 Unit 8 Application of Computers ................ 81 Part III Sample Questions ....................................... 855 Approach APPROACH I Vocational Education Programme The goal of vocational education is to fulfil the man power requirements for national development and for social security for the citizens through employment. The courses are designed as vocationally oriented with

ample scope for self as well as wage employment. A curriculum which facilitates the student to select specialised vocational courses for higher and indepth studies and also to at tain general understanding of the basic sector are the needs of the hour. The activity based learning and grading system started from standard 1st has already reached to standard X. The changes in methodology and evaluation system is to be extended to Vocational Hi g h e r S e c o n d a r y c l a s s i n o r d e r t o make the learning process fruitful. Therefore learning should be: l Activity based l Process oriented l Learner centered l Environment based l Life oriented Objectives of Vocational Education Programme 1To fulfill the national goals of development and the removal of unemployment and poverty. 2 To impar t educat ion relevant to

increased production and productivity economic development, individual prosperity. 3To meet the need for skilled manpower for the growing sectors of economy, both organised and unorganised. 4To prepare students for self reliance and gainful self employment. 5 To create values, national thought and envi ronmental awareness, aimed at social and cultural development among students. 6To create an awareness about physical and mental health among students. 7 To facilitate the expansion of higher education and employment opportunites through conducting career guidance progammes. 8To provide training facilities in related vocational subject. Approach to learning commerce Commerce is down-to-earth practical discipline. Hence learning process should be organised around

current business process. There is, therefore, a need to closely interact with business. A student of commerce must be able to relate himself to the changing business environment and to understand their implications through the interaction peer sharing of experience and experimental learnings. Learning through activities will definitely make the learning of commerce effective. The commerce based vocational courses are one of the popular courses6 Teachers Sourcebook VHSE General Insurance in the country General Insurance is one such subject taught under commerce based vocational course. Objectives of general insurance lTo give students ample opportunities to acquire relevant knowledge about life and general insurance. lTo familiarise students with insurance market and various types of policies. l To prepare students for a career in the field of insurance by getting

wage employment as well as self employment. lTo develop skills in risk management in the field of business and industry. l To enable the students to analyse the need of insurance in the daily life especially in the field of motor insurances. lTo develop thrift and saving mentality among the students through insurance education. l To develop a capabi l i ty in each students to identify business opportunities and its risk-return p o s s i b i l i t i e s a n d i n v e s tme n t o f insurance funds in socially desirable projects. Theoretical foundations of new approach of Commerce The basis of the new curriculum is derived from developments in philosophy, psychology, anthropology, and sociology taking place in India and in European countries. These

developments have helped to make a shift from teacher centred learning to

student cent red learning and, that learning takes place through social interactions. The new curriculum gives

adequate thrust to the following. l Multiple Intelligence l Constructivism l Emotional Quotient I Understanding a student - A unified approach to Multiple Intelligence. According to the theory of Howard Gardner, human intelligence has different components and all these components are present in all individuals in different proportions. Some components may be more prominent in some individuals. He considers that giving suitable environments and through continued e f f o r t s , s t u d e n t s c a n imp r o v e t h e various components of intelligence to a greater extent. Components of Intelligence 1 Verbal/linguistic intelligence The abi l i ty for reading, wr i t ing, verbal production, speak and communicate effectively belong to this type. This type of intelligence can be

developed through activities such as oral communication, report writing etc. 2 Logical/mathematical intelligence Abilities like logical thinking and f inding out pat terns and relat ions belong to this component. This type of intelligence is developed through establishing relationships and mathematical operations. 3 Visual/spacial intelligence People with prominently visual/ spat ial intel l igence wi l l be able to design models and execute ideas they have. Architects, designers and

sculptors will be strong in this type of intelligence. Model building, making7 Approach of art materials, sculpting, painting and drawing will help this component develop. 4 Bodily-Kinesthetic Intelligence This intelliegence is related to the ability to move the body parts. Dancers, actors and sports people who can move the body aesthetically and express emotions through body movement belong to this category.

Activities involving dance, aerobics, sports and games help the development of this type of intelligence. 5 Musical Intelligence It is believed that this type of intel l igence is highly developed in people with the ability to distinguish the different elements in music, performing musicians and those who can appreciate music. Playing musical instruments, singing along with others, keeping rhythm etc. are activities that help the development of this component. 6 Interpersonal Intelligence People who demonstrate leadership qualities and are able to interact in a positive way with others will have a better developed interpersonal intelligence. They can understand the thinking of others and can successfully involve in negotiation activities. Role play and group activities can be used to cultivate this intelligence. 7 Intra Personal Intelligence This is essentially the ability to

understand oneself. Such people will have the ability to understand their abilities and shortcomings. Analytical dairy writing, assessment of ideas and activities of others and assignments can help the growth of this factor. 8 Naturalistic Intelligence This is characterised by deep interest in nature and the flora and fauna, love for fellow beings, interest in spiritual and naturalistic phenomena. This component can be strengthened through nature study and enjoying the beauty of nature. Gardner speaks about another dimension of intelligence - existential intelligence. But this has not been elaborated sufficiently. The teachers may ensure that learning activities that cater to all the components of intelligence are provided to the students. Multiple Intelligences in the Commerce class room The multiple intelligences of the students are strengthened and developed as they go through different

learning activities.

The different

dimensions of multiple intelligences are seen in each student in different levels. The teacher must organise learning activities that facilitate the growth of all the domains of intelligence in all the students. See Table given in Next page II Facilitates learning through Constructivism The past decades have seen a radical change in the concept of learning. The contribution of Piaget, Vygotsky and Bruner have given a new direction to the developments in this area. Important among these new concepts are:8 Teachers Sourcebook VHSE General Insurance lLearning is the construction of knowledge. l Learning takes place as par t of problem solving. lLearning takes place by incorporating new elements of knowledge into the cognitive

structure of the learner. Impor tant ideas put forward by constructivism may be examined now; 1 Discovery learning Teachers must create an atmosphere that enables the learner to discover ideas and facts. Rather that leaving the student to discover for herself, providing opportunities that prompts the learner to discovery is important. Providing direct

explanations and asking the student t o imi t a t e mo d e l s a r e n o t wh a t i s expected from the teacher. Helping the student to develop a model on her own is more important. 2 Learning through debate Debates lead to learning is an idea of Bruner. Here debate does not mean an argument. It is a sharing of ideas. New ideas can be developed by asking for explanations, contributing ideas, internalising ideas and analysing ideas in debate. It is an active method where all students in the class can participate. 3 Learning through Problem solving

Learning takes place only when the student sees in a particular learning situation a problem that needs a solution. When an imbalance in

knowledge is produced the natural l Biju insured his stock of goods worth Rs.10,00,000 for Rs.8,00,000. A fire occured during the year and lost the goods worth Rs.5,00,000 and he claimed the amount. But the insurer paid only Rs.4,00,000. Find the reasons. l A group discussion is arranged on the example cited above. l Ask the students to prepare a chart showing different types of Life insurance policies. l An agent approaches a proponant and canvasses life insurance business - The students are asked to make a role play. l Giving an assignment to visit an agent and collect details of cattle insurance and prepare notes l Logical/ mathematical intelligence l Logical/ mathematical, inter personal intelligence l Visual/ spacial intelligence l Bodily/ kinesthetic intelligence l Linguistic, natural intrapersonal

intelligence. SCOPE FOR DEVELOPMENT OF MULTIPLE INTELLIGENCES Topic - Fire Insurance Strategy: Discussion Activities Scope for multiple intelligence9 Approach tendency is to carry out some activity to correct this. The student needs to be confident that he/she will be able to find a solution. Problems framed need to consider the abilities, cognitive level and practicability. 4 Collaborative learning This is a form of learning which shares the learning responsibility among members of a group which works towards a common goal. The common goal can be achieved only when all the group members perform their duties satisfactorily. outcome of learning can be shared by all the members of the group. The teacher who facilitates learning need to clarify the responsibilities of each member. This can be done only The

through discussions with the members of the group. The situation where one

person acts on behalf of the group can be avoided in this type of learning. Collaborative learning method can be followed only by a teacher who is p r e p a r e d t o s h a r e k n owl e d g e a n d authority with the students. 5 Co-operative learning This is a mode of learning where the learners help each other to learn. Those who have better knowledge and experience help other students. It must be ensured that the help is not mere copying of other students work. It is a need based interaction providing support for learning at all stages. All the members of the group will be ready to answer the questions on the common task and the groups achievement will be evaluated on the basis of the performances of the group members. 6 Zone of proximal development (ZPD) According Vygotsky, there is a level of achievement that can be reached b y a l l l e a r n e r s o n t h e i r own , a n d another higher level which can be achieved through help from teachers

or peers. While any learning activity can be successfully completed by many learners, with the help of knowledge elders all can reach a higher level. Those who complete the activity only in parts can complete it with the help of the teacher. If appropriate help is received, all learners proceed to better performance. The area between the level achieved by own efforts and that which can be achieved with the help of others is called as zone of proximal development by Vygotsky. 7 Scaffolding It is only natural that many learners are unable to complete learning activities if help is not received in time. The student needs help from the teacher in many learning activities. Here, help does not mean taking over and completing the work for the student, but making the student herself complete it. Teacher may provide hints, examples, evidences, or ask questions to direct the thought to specific path. In some situations the student may be asked

to examine how others have approached the problem. What is important in providing this scaffolding is to bear in mind that the student must gradually be equipped to take up and complete the task. The concept of scaffolding highlights the important role of the teacher in learner centred education.10 Teachers Sourcebook VHSE General Insurance 8 Learning an active mental process Learning being a congnitive process, the teacher needs to know cognitive processes to facilitate the creat ion of learning oppor tuni t ies. Learning can be made effective by providing learning experiences involving mental processes like lRetrieves/ recollects/ retells information l Readily makes connections to new information based on past experiences and formulates initial ideas/concepts. lDetects similarities and differences. l Classi f ies/categor ises/organises

information appropriately. l Translates/transfers knowledge or understanding and applies them in a new situations. lEstablishes cause-effect relationships. l Ma k e s c o n n e c t i o n / r e l a t e s p r i o r k n owl e d g e t o n ew i n f o rma t i o n / applies reasoning and draw inferences. lCommunicates knowledge/ understanding through different media. lImagines/fantasises/designs/ predicts based on received information. l Judges/appraises/evaluates the merits or demerits of an idea/ develops own solutions to a problem. 9 Internal motivation Constructivism emphasises internal motivation over external motivation. Teachers must make all efforts to see that students have internal motivation. Only a student who is internally motivated can involve

completely in learning and own up responsibility for all activities in learning. The teacher may frequently evaluate how far she has been able to motivate the students and develop adequate strategies. III Development of ones own feelings through Emotional Intelligence The concept of emotional i n t e l l i g e n c e p u t f o rwa r d b y Da n i e l Golman was used in framing the new curriculum. The fact that ones

Emotional Quotient (E.Q) is the greatest factor affecting success in life is now widely accepted. The teacher who aims to focus on improving the emo t i o n a l i n t e l l i g e n c e o f s t u d e n t s need to concentrate on the following. i) Ability to take decisions Rather than imposing decision on students while planning and executing activities, the students may be allowed to take part in the decision making process. Taking decisions through open discussion in the class, inviting students suggestions on common problems etc. are habits to be cultivated.

ii) Ability to reach consensus l When different opinions, ideas and positions arise the students may be given the responsibility to reach a consensus. l Imaging what would be the course of action in some situations, allowing to intervene in a healthy way in problems between individuals. iii) Problem solving ll Developing the idea that there is reason and solution to any problem. lTraining in finding reasons for problems.11 Approach lSuggesting solutions through individual or group efforts. l Discussing social problems. lAnalysing the shortcomings in methods to solve problems. Wh e t h e r p l a s t i c c a n b e b a n n e d within school premises can be given as a problem. Group discussion will provide reasons and solutions. Problems which can influence classroom learning and for which the

learner can actively contribute solutions need to be posed. l Self criticism, evaluation l Ability to face problem-situation in life l T h i n k i n g wh a t o n e wo u l d d o i f placed in the situation of others, how one would respond to certain experiences of others - All these foster the growth of emotional intelligence. iv) Life skills Life skills need to be given a prominent place in education. W.H.O. has listed ten skills required for success in life. l Self awareness l Empathy l Inter personal relations l Communication l Critical thinking l Creative thinking l Decision making l Problem solving l Coping with emotion l Coping with stress The new approach of curriculum

addresses these areas. The learner centred approach has a different perspective from the earlier approach as to the characteristics of the learner, learning activity, role of the teacher, the use of teachers

source book, the role of school and the facilities for learning which help the teacher to plan and learning activities effectively. Role of the student in the learner centred curriculum The student in the learner centred curriculum will also be changed as he became an integral part of the system. The learner in and outside the classroom are expected to be: active participant in the learning process formulate concepts of his own engaging in group activities share information/knowledge share responsibilities take leadership co-participant interpret and draw inferences Features of Learning Activity l Involve mental processes which implement

facilitate learning/construct ideas. lPresent challenging situation problems l Time bound l Active involvement of each learner lPossibility for various types of interactions Learner Learner Learner Teacher Learner Material lChances for success/self correction/improvement lMotivate for further study and inquiry. l Appropriate to age level/class lBased on specific objective/ objectives12 Teachers Sourcebook VHSE General Insurance Role of Vocational Teachers In the learner centered education the teacher is a person who has to create intrinsic motivation among the students. For achieving this goal the teachers should be lable to consider the abilities, needs, special features, and age group of students at Vocat ional

Higher Secondary level l able to understand the limitations of students and their learning problems la good guide to the overall development of the student l a facilitator of learning l an instructional material developer l a good communicator l an innovator l able to raise leadership qualities and self confidence of the students l an authoritarian in the concerned subject. lable to arrest and sustain the attention of the student l a good observer and motivator l able to bring out and encourage the inborn talents l a resource manager to ensure the optimum utilisation of resources l a systematic record keeper l a councellor to issue guidance to the students l a person with high level of practical competency l able to correlate area of study with

familiar environmental situations. l a promotor of extension activities l a self evaluator and good listener l able to create awareness in social problems la person with democratic and humanitarian approach. la professionalist as well as philosophor l a good evaluator l a good organisor and a friend la co-learner as well as a coresearcher l able to give assistance and advice in placement needs and self employment by giving moral and technical support l able to keep moral values l a person equipped with skill for using new techniques of learning l optimistic and impartial. Nature of course content The course content of a good structured curriculum should be of the following nature. l Job oriented l Learner friendly

l Activity and problem oriented l Planned/ time bound l With student centered approach (democratic) l Flexible l Technologically updated l Suitable to achieve the objectives l With specified area of study l Activities suitable to the locality l Concept fulfilling l Need based l To achieve the objectives l To develop curiosity l Basic skill developing lLife related and environment related lShould contain feed back/ evaluation techniques. Child friendly classroom atmosphere Learning can be effective and e n j o y a b l e o n l y w h e n t h e c l a s s13 Approach atmosphere is according to the new conception of learning and the characteristics of the Vocational Higher Secondary student. l Class and seating are arranged in

an attractive way. l Democratic nature is upheld. l Always active l Students interact wi th teachers without fear. lOpportunity for a variety of activities lStudent allowed to involve in interesting group activities. l Learning speed, learning style and differing levels of abilities are considered. whenever needed. l Sufficient instructional materials are available. l There is f reedom of expression, students share their ideas and experiences. l Students are given acceptance and encouragement l Healthy atmosphere l Ne e d s o f e a c h s t u d e n t i s g i v e n consideration. energetic atmosphere. lTeachers work considering the rights of the student. l Problems handled in a patient way. Happy and Help is extended

l Teachers look at all events from the students viewpoint. Difference in levels There will be students of various abi l i ty levels in any class because learning style, learning speed, varying exposure to language exper iences, physical and psychological problems and varying socio-cultural background. The learning experiences provided must help to bring the low achievers to an expected level and extend the breadth and depth of the skills of the high achievers. By repeating learning experiences, introducing variations in a learning experience to suit different levels and if needed, formulating additional experiences, the problem of varying ability levels can be tackled. Teachers' Source book The teachers source book is aimed at helping the teacher in the transaction of the new curriculum. lMakes clear the curriculum objectives l Contains the minimum package of

learning activities. l Provides guidelines for planning the activities. lProvides hints for evaluating activities. l Stimulates teacher's thinking. School In order to shift from teacher centred approach to the learner centred approach the environment in the school is also to be modified. The school should function as a social institution which provides opportunity to parents and society to interact . I t evolves as a resource centre of information and knowledge. For the effective transaction of the commerce cur r iculum in the class room, library and other support easily

systems should be oriented in such a way to cope up with same. Bulletin Board Bu l l e t i n b o a r d i s a d e v i c e t h a t displays news cuttings, posters, a r t i c l e s , p a i n t i n g s a d v e r t i s e m e n t14 Teachers Sourcebook VHSE General Insurance copies, leaflets etc, collected by the

students that has relevance to Insurance. Bulletin board is very suitable for pasting announcements and assignments. Students themselves should be made in charge of the bulletin boards and the teacher should only act as a guide. The skill of information gathering and dissemination can be achieved through this activity. Commerce Library A commerce library is a resource centre which provide information to the students through secondary devices namely text books, reference books, journals, magazines, newspapers, internet etc. If a s s i g nme n t s i n c l u d i n g s o l u t i o n t o problems are carefully given work in the library for their completion will develop desirable reading habits among students. It creates reading habits among students and enable them to better utilise leisure time in the School. Commerce Club Commerce club helps to develop

the potential skills, capabilities and knowledge of the students. It enhances the team building process, collective and participatory learning, promote innovative ideas, enrich the existing knowledge, and develop interactive skills enable organisational and leadership qualities. Activities 1Conducting Commerce and management quiz 2 Conducting essay competitions on commerce topics and current affairs 3Conducting invited lectures/ seminars of professionals, academicians, industrialists, educationalists etc. 4Conducting debates on contemporary topics with active participation of students. 5Conducting exhibitions on commerce. 6 Conducting study trips to industrial uni ts, business establ ishments, financial enterprises. Vocational Diary

Vo c a t i o n a l d i a r y i s a r e c o r d o f activities undertaken by the students as part of the learning process. The students should record the problems encountered during the learning process, possible courses of action, constraints and difficulties, innovative ideas etc. Contents 1 Matters relating to projects 2 Matters relating to seminars 3 Matters related to field trip 4 Matters related to debate 5 Ma t t e r s r e l a t e d t o c omme r c e club 6 Matters related to bulletin board 7 Matters related to exhibitions 8 Ma t t e r s r e l a t e d t o c omme r c e library The teacher should per iodical ly verify and review the vocational diary maintained by the students and make necessary comments and suggestions.15 Approach Multi media Room To provide appropr iate learning experiences in the new approach of

curriculum, advances in science and technology may be made use of. Setting up a multimedia room in each school would help in this aim. The

multimedia room may have the following equipments. Over Head Projector (O.H.P) It is a very useful instrument as audiovisual aid. Transparency sheets showing written/printed material can be projected to the screen. OHP is based on a simple working principle. A powerful beam of light from a bulb is allowed to fall on a mirror after passing through a lens. The mi r ror ref lects the mater ial to the screen. The transparency is placed in the path of the light beam. The following can be used to record on transparency. l OHP marker pens l Indian ink l Hecto carbon paper l photocopy on transparency l Laser print on transparency If the bulb of OHP is used continuously for more that 10 minutes

it may black out. When transparency sheets are prepared the following points may be kept in mind. l The main ideas relating to a topic may be presented under serial numbers. l Use bigger si zed let ters. Wr i te clearly l Use colours l One transparency may be limited to 12-15 l ines. More l ines wi l l make it difficult to read. Information Technology During a time of information explosion, comprehensive study of Commerce based vocational course c a n n o t b e l imi t e d t o b o o k s a l o n e . Information technology is a medium which can help one to col lect and exchange new knowledge that is created by the minute. It helps us to study and understand the concepts wh i c h a r e n o t ame n a b l e t o d i r e c t observation, new developments, habitats, and physiological activities. Computer

The computer is a medium which can store enormous data and help in analysing and presenting data in many forms. 3 D pictures, movements and sounds can be recorded and stored in a computer. It can also be shown on the monitor screen or printed when needed and can be sent to other computers through internet. Making use of computer lSlides and animations can be prepared based on lesson units. lThe animations and other demonstrations prepared can be used in connection with transaction of the lesson unit. l Print out copies of the material prepared can be used for group work. Internet The internet is a network of mi l l ions of computers al l over the world.16 Teachers Sourcebook VHSE General Insurance The learners can search and find the information required by themselves. They can make use of

the information collected from the net in a variety of ways. The internet makes available not only information and ideas, but tools for evaluation also. A n umb e r o f

websites provide you a great variety of material at no cost. Liquid crystal display (LCD) Projector The LCD projector helps to project to a big screen, the display on a computer monitor. Schools which do not have LCD projectors must try to acquire one with the help of NGOs, PTA and local administration institutions . Media like TV, VCD, DVD and tape recorders may also be utilized appropriately. Using the education programs of Doordarshan and other channels is also important.17 Approach LEARNING STRATEGY II The advent of globalisation ensures only the survival of the fittest. The field of education has no exception to this. It deserves to equip the learners

to face the growing challenges in the complex world. Hence the traditional approach like class room centred lecturing tone of teaching and

learning has no more relevance. Now the learners are not merely the passive listeners but the active participants in the process of assimilation and dissimilation of knowledge. This compels the learners as well as teachers to cope with the tremendous changes taking place in the realm of education. The educational reforms, especially the Grading System is a leap towards this direction. Hence there is a dire need to redesign the learning strategies. This wi l l open the new spheres of knowledge to the Insurance students to enlighten the knowledge explosion in Insurance. In view of this objective the following action oriented learning strategies are introduced at the Vocational Higher Secondary level. Project Method Project is one of the most appropr iate st rategies for learning

commerce. It is a sequence of activities of a learner to collect, tabulate, analyse and interpret relevant data so as to evolve findings to solve the felt problem. Project Method is based on the idea that true knowledge is acquired not merely by reading books and attending lectures but by the learner themselves. Learning by doing and learning by living are two cardinal principles of this method. It is a creative way of self learning which help to develop the full potential of the learners. Stages of project method I Selection of topics a Identify the problem A project has to be done on a felt problem in the classroom learning situation. It should not be done for the sake of project work, but for problem solving. Most of the project work area evolve from the academic discussion in the classroom. For example: Tsunami affected the coastal areas of Kerala during

2005. How can we est imate the total liability of the insurers. b Formulate a suitable title Based on the identified problem a suitable title has to be formulated. The title must be specific, clear and appropriate to the subject. In the above example the title may be Liability of the Insurers on account of Tsunami. II State the objectives In view of the problem identified, the learner wants to collect some information relating to the problem. T h i s w i l l h e l p t h e l e a r n e r s i n18 Teachers Sourcebook VHSE General Insurance understanding the problem better. Hence the objectives for the above example may be the following To estimate the amount of insurers liability. III Planning This can be done through a discussion in the class. (a) Formulation of hypothesis Planning can begin with formulation of hypothesis. For

example l Tsunami affected all the persons in the costal areas of Kerala. lSome of the persons in the Tsunami affected area are insured persons. (b) Methods and Techniques Methods and techniques should be based on the objectives and hypothesis of the study. The nature of study, suitability of rules, method of learning, etc. should be related to one another. For example. conducting an interview with people visiting the loss affected area. (c) Identify the source of data Based on the objectives data may be collected by primary or secondary sources. Primary sources include real field of study. The data can be collected through observation, questionnaire, interviews, etc. Secondary sources include published documents namely report, news articles, paper reports, etc.

(d) Collection of data: Data may be collected through field trips by schedules and questionnaires and personal observation. ( e ) Analysis and interpretation of data: The data so collected should be tabulated, analysed and interpreted to derive possible conclusions. Collected information from the interview should be processed for analysis and interpretation. In the above example the collected d a t a s ma y b e p r e s e n t e d b y t h e learners in the project report in an attractive manner. (f) List out the finding: The conclusion derived be systematically listed to arrive at suggestions or conveying useful information For example Total percentage of insured person 15%. Total percentage of motor vehicle insured - 100%.

Total percentage of property insured - 10% IV Execution of the project: An outline of the project based on the components discussed above may be drawn. The project activities may be carried out according to the plan with necessary modification as and when required. V Presentation of Project Through a project presentation, the learner is getting accepted. Ideas can be communicated and shared with others. It can be presented in a commerce club meeting. Project Diary The project diary can be made use of to prepare project report. Each stage of the project should be recorded in the diary while doing the project. The19 Approach credibility of the project and data can be established with the help of the diary. Necessary di rect ion may be provided to the students to write the project diary. At frequent intervals the

teacher must check the recordings made in the project diary of the students. A portion of vocational diary can be utilised for this purpose. Assignment Assignment is some specific work assigned to the students as part of their academic enrichment. These are learning act ivi t ies under taken as a continuation of classroom activities to realise the curriculum objectives. They should be completed in time bound manner. They help to lead the learner to higher level of learning from the present status. It may vary from writing an essay to organising project works. Challenging assignments can motivate the students to involve in group dynamics and achieve fruitful r e s u l t s . T h e t e a c h e r ma y a c t a s a guide. Assignments may be given on individual or group basis. Assignments include preparation of notes, preparation of charts, models, collection of materials from industrial and financial institutions etc.

Assignments develop skills of reference observation, enquiry and reporting etc It ensure the affective utilization of leisure time of the students. For instance 1 Prepare a note on types of Insurance policy. 2 Prepare note on difference between utmost good faith and good faith. Seminar Seminar is a learning method involving an in-depth analysis of a specific topic, preparation of a paper and presentation before the students. The paper is presented by either one student or a group of students. After the presentation, there will be a discussion/ interaction in which all students can participate. The students get an opportunity to clear their doubts and make clarifications. Seminar helps to develop communication skill and overcome stage fear. Stages 1 Selection of topics The topic of seminars should be

relevant to the subject of study. Example a Benefits of insurance b Differences between depositing money in Banks and others securities and effecting life insurance policy 2 Assignment of topic to individual student or teams The topic may be prepared by one student or a group of students 3 Collection of relevant information Information required for seminar can be collected from various sources namely websites, News papers, Magazines, T.V, Radio etc. 4 Preparation of the draft paper Based on the information collected, the presenter may prepare a draf t paper and submit it to the teacher for comments. Revise the draft paper based on the comments by the teacher20 Teachers Sourcebook VHSE General Insurance 5 Finalisation of the paper The student may submit the revised draft to the teacher for approval.

6 Program scheduling Now the task of the students is to fix the date, time and venue of the seminar. For this a seminar convener may be selected from the students. 7 Seminar paper presentation The student/students shall present the paper in the seminar. One of the students can moderate the seminar. In initial stages the teacher may moderate the seminar. 8 Discussion/ Interaction A panel of respondents from the students make comments on the topic. T h i s wi l l b e f o l l owe d b y a g e n e r a l discussion. 9 Summing up the deliberations The moderator sums up the deliberations 10 Evaluation/ Feed back Both teacher and students evaluate the programme. 11 Preparation of final report It should contain all the points covered in the seminar along with the additional points discussed and

consolidated. Individual report is

needed. Debate Debate is one of the effective learning strategies f o r c omme r c e

classes. It is based on the modern psychological concept of social constructivism. Debate is a creative and collective process of eliciting all related facts of a topic. It also enables the participants to enrich their knowledge through healthy dialogues. In a debate, there will be minimum two groups and a moderator. The skills of critical thinking, positive interaction etc of the students can be developed through this learning method. It avoids stage fear of students and enhances substantiating abilities of the learner. Stages 1 Topic Selection The topic of the debate should be relevant and having potential for di f ferent view points. For instance merits and demerits of E-Commerce. 2 Selection of panels At least two panels of students may

be selected to argue for and against the topic. Special care should be taken to select the students keeping balance with their individual differences like intelligence, gender, social status in the class. (The ideal number in a panel may vary from three to five) 3 Selection of a moderator A student representative should be selected to moderate the session where as the teachers will act as a guide. In the ini t ial stages teacher may act as the moderator. 4 Collection of information The panel of students should be guided by the teachers to collect as enough information from news papers, Magazines, Websites, Govt. reports, TVs, Radios etc.21 Approach 5 Conducting the debate The teacher acts as overall guide and student representative as moderator will facilitate the debate. Both the panels can raise their viewes and arguments on the topic. The rest of the students can par t icipate as

observers. They can make interventions to present their views only with the permission of the moderator. The moderator should be well aware of all the aspects of topic b u t s h o u l d t a k e a n imp a r t i a l a n d independent position. He should be able to inspire the panels to elicit as much information as possible and in case of necessity from the observers also. The moderator should take special caution to control and avoid any sort of personal conflicts. 6 Conclusion The Moderator should conclude the debate by expressing his final version based on the views evolved from the debate. Then the teachers can make his/her observations comments and suggestions. Field trip/ Study tours Field trip provides direct and

contrived experience to the learners. It is based on the principle that Seeing is bet ter than hear ing I t gives an opportunity to students to observe the real life situation of the topic. It also

enables the students to retain the learning longer and to make the topic more interesting. For instance, visiting LIC. It would enable the students to know the procedure of effecting life policy and settlement of claims. Both field trip and study tours give an oppor tuni ty for the students to understand the real l i fe si tuat ion. Howe v e r t h e r e i s s l i g h t d i f f e r e n c e between these two. Field trip is a short visit to a local area with a specific purpose. On the other hand study tour is a trip with more than one object. It requires extensive planning and preparations. Stages 1 Selection of venue 2 Getting permission form concerned organisations. 3 Planning and Scheduling of the trip Which consists of preparation of tool for study whom to be int roduced date, t ime, expenses etc. 4 Assigning task to the group leaders

5 Actual visit 6 Monitoring the visit by the teachers 7 Reporting 8 Evaluation Brain storming Brainstorming is one of the best methods of creative problems solving. It facilitates generation of ideas quickly. It stimulates fresh ideas and enables participants to break loose from fixed ways of responding to problems. Brain storming Rules 1 No response is wrong 2 Welcome as many responses as possible, quantity is required 3 Every response is accepted without discussion or judgement (free wheeling) 4 No criticism is allowed 5 Allow to work on others idea22 Teachers Sourcebook VHSE General Insurance Once brainstorming has el ici ted quantity sufficient number of responses, the students may be guided to use their analytical and synthesis skills to determine best ideas.

Steps in brain storming The following steps may be used to run a brain storming session 1 Presentation of the problem 2 Provide relevant information 3 Record the ideas put forth by the participants 4 Combine similar ideas 5 Evaluate each idea/solution 6 Selection of the best solution It is important to note that the last step is not an essential part in brainstorming when it is used as an instruction strategy. Discussion Discussion is a strategy in which students learn by sharing experiences and opinions with each other. The teacher has to careful ly plans the lesson to reach desired learning outcomes and guides the discussion through questioning and summarizing The group interacts in response to questions. The flow of communication can be smoothened among al l the learners. Organisation of Discussion

The following stages are involved on the organisation of discussion. 1 Introduction It should be initiated by the teacher. As much as facts and features that can be elicited should be drawn The topic for discussion may be pinpointed and the key areas are to be developed 2 Development In this stage the teacher can use l Lead points l Follow up interactions 3 Transitions In this stage, the key points may be reviewed. Participation of all learners may be ensured. 4 Summarisation /Conclusion At this stage teacher may provide additional support material to ensure the achievement of the objectives. Role Play In role-play the students have to project themselves into simulated interpersonal situations and act out the part of the persons and situations

assigned to them. It is a very useful strategy to develop interpersonal skills and strengthen learning in identified areas. Case study A case may be a person, institution or a community. Case study is an indepth analysis of an actual event or situation. It presents real pictures of situations with facts, objective information or data. Learners analyse the case to interpret, predict and revolve issues associated wi th i t . The case study provides the learner an opportunity to analyse and apply concepts, data and theory taught from the class. Learners can work individually or in groups. By studying realistic cases in the c l a s s r o o m , s t u d e n t s d e v e l o p n e w23 Approach insights into the solution of specific on-the-job problems and also acquire knowledge of the latest concepts and principles used in problem solving. Case may be presented by the teacher or may be provided in print

form. A simple case study may have the following steps. l Collection of data l Conversion of data into information l Analysis of the case in groups l Presentation of the findings by each group leader l Evaluation Collections Collection is continuous learning activity which ensures students participation and involvement in whole. In commerce, collection can be of pictures, brochures, advertisements, ideas, documents etc. Collection of materials provides direct experience to learners. An exhibition can be conducted to display the collected materials which strengthens various concepts among learners. In addition to the above mentioned learning strategies, there are many other learning strategies which can be used in appropriate situations to enrich learning process such as interview, problem solving etc.24

Teachers Sourcebook VHSE General Insurance CURRICULUM OBJECTIVES & SYLLABUS III Curriculum Objectives l To obtain an understanding about the concept of risk and features of risks which can be insured through group discussion and prepare notes. l To get an idea about different types of risk and to analyse their implications in life, business and other human act ivi t ies through case study and prepare notes. l To get a thorough idea about pure and speculative risk and its application in business through case study and discussion. lTo develop an idea about management of risk and different methods of handling risk through group discussion and notes. lTo make an idea among the students about the functions of insurance such as protection,

financial stability, security, risk transfer, risk distribution, loss reduction, creating fund for investment, promotion of foreign trade and basis of credit through discussion and preparation of notes. lTo examine the benefits of insurance to individuals, business and society through discussion and preparing charts. lTo create an idea among the students about insurance contract, elements of contracts, and classification of contract through case study and general discussion and prepare notes. l To obtain an information about the origin of insurance and its development through group discussion, reading materials and thereby prepare notes. l To obtain knowledge about different types of insurance such as life, health, and non-life insurance through case study and group discussion and prepare notes. l T o ma k e a d e t a i l e d a n a l y s i s o f

property insurance such as crop insurance, building insurance, stock of goods insurance and machinery insurance through case study and group discussion and prepare notes. l To get an idea about insurance of interest such as fedility guarantee through case study, group discussion and prepare notes. l To get an insight about the different aspects of liability insurances such as public liability, product liability, professional indemnity and employers liability through case study, group discussion and prepare notes. l To acquire concepts about different aspects of fire, marine and motor insurance and to analyse their elements through group discussion and prepare notes.25 Curriculum Objectives l To develop an idea about Insurable Interest and to analyse its implications while insuring a subject matter, to understand the

financial interest in a subject matter and to differentiate insurance and gambling through case study and group discussion and prepare notes. l To analyse the ethical values of disclosing material facts and effects of non-disclosure of it, through brain storming, general dicussion and prepare notes. l To get an idea about the procedure of payment of compensation to the insured and its mode of payment through case study and preparing notes. l To obtain a clear knowledge about the application of the principles of subrogation and the right of the insurer after payment of claim through case study and preparing notes. l To critically evaluate the right of the insurer in case of double insurance and the method of payment of claim and to prove that the principles of indemnity, subrogation and contribution are

corollary to each other. l To classify the causes of accident and to identify the direct cause of accident and remote cause of accident through case study and preparing notes. l To analyse the process of under writing a new business, to compare the methods of underwriting personal and commercial insurance and to understand the basis of calculating premium through discussion and seminar and prepare notes on it. l To obtain information regarding claims related to life insurance and general insurance and to get an idea about notification of claims, settlement of claims and disputes by conducting a discussion and interview with an insurance expert and prepare notes on it. lTo undertake a project on the documents issued by the insurer in different occassion and to list out their contents. The students may be able to analyse the uses of

different forms issued by the insurer. l To establish the fact that renewal of general insurance policy is

opt ional and i t can be done by paying renewal premium from the group discussion and making notes. l To make a detailed analysis about the marketing strategies adopted by the insurers for selling their products through field trip, observation and prepare reports. l To collect information about reinsurance and different methods of re- insurance and to analyse i ts necessity in society through case study, group discussion and prepare notes. l To get an idea about the different data processing such as ADP, EDP, IDP, systems and to locate its uses through general discussion, through reading materials and prepare notes. lTo acquire knowledge about different types of data processing machines and to locate its uses through general discussion and

prepare note.26 Teachers Sourcebook VHSE General Insurance lTo develop an idea about basic terms such as Hardware, Software, CPU, memory, Networks through group discussion, reading materials and prepare notes. l To get an idea of virus infection and antivirus software through reading materials and prepare notes. lTo develop concepts about E-commerce and make a detailed analysis of its opportunites in business, through demonstration, interaction with experts and through reading materials and prepare notes.27 Syllabus Unit 1 l Concept of risk l Meaning of risk l Classification of risk l Financial and non-financial risk l Pure and speculative risk l Fundamental and particular risk l Management of risk Unit 2

l Functions of insurance l Risks transfer l The benefits of insurane l Peace of mind l Loss control l Social benefits l Development of insurance l Insurance contracts Unit 3 Life and non-life insurance insurance of person - P.A insurance, sickness insurance, health insurance, pension scheme; Insurance of property - building, machinery, aircraft, streamers, stock of goods, cash, securities, crop, television, etc. Insurance of interest - guarantee insurance, fidelity guarantee i n s u r a n c e , p r o f e s s i o n a l i n d emn i t y insurance, employers liability insurance. Fi re, mar ine and miscel laneous insurance. Unit 4 l Principles of insurable interest l Principles of utmost good faith

l Principles of Indemnity l Principles of subrogation l Principles of contribution l Principles of proximate cause Unit 5 The underwriting process. The underwriting of personal insurance and commercial insurances. Claims Life Insurance claims, Claims notifiction in connection with general insurance, claims settlement, adequacy of cover, disputes. Unit 6 Insurnace documentation and publicity: Proposal forms, policies, cover notes and certificates, renewals, Nonp a y m e n t o f p r e m i u m s , l o n g t e r m agreements. Unit 7 The insurance market place insurance market, sellers, intermediaries, buyers - insurance brokers, insurance consultants, reinsurance. Unit 8 Data processing - Data processing system - ADP, IDP, EDP - Types of data processing systems. Data processing machines

classification of computer systems input devices - output devices. Computer terminology - Hardware, Software - CPU, RAM - ROM - LAN WAN - Laptop - Virus infection - anti virus - E-Commerce. Syllabus28 Teachers Sourcebook VHSE General Insurance PLANNING IV ANNUAL PLAN Term Month Unit No. Name of Units Hourse Total Periods I June 1 Nature of Risk 10 July 2 Introduction to Insurance 10 August 3 Classes of Insurance 20 August 8 Application of Computers 8 48 II September 4 Special Principles of Insurance Contract 20 October 8 Application of Computers 8 Novermber 5 Underwriting and Claims 20 December 6 Insurance Documentation publicity 12 60 III January 6 Insurance Documentation Publicity 8 February 7 Insurance Market place 20 February 8 Computer Application 4 32 In the context of the changing scenario in the field of Education, the role of the teacher is not simply to teach the syllabi. The emerging needs of education calls for a facilitators role from

teachers. The learning process should be student centered and activity oriented. Learning activities must enable the student to develop process domain and multiple intelligence skills to their maximum extent. No matter whether these skills are attained inside or outside the classroom, but the teacher must bear in mind, the fact that they are to be accomplished within a time f rame. In order to achieve this end, the teacher may make necessary plans in terms of learning activities, the time required at various stages of learning, the time required for each unit, and also the desired outcome. The plan may be hierarchically structured as: a) Annual Plan covering the entire activities for the year as a whole. b) Unit plan which has to be prepared just before the start of a unit. Each chapter is treated as a unit. c) Daily Plan to provide learning activities for a days learning.29 Planning UNIT PLAN Nature of Risk No. Curriculum Objectives Ideas/ Concepts Activities Materials Evaluation Hours 1 To obtain an understanding about the concept of risk and features of risks which can be insured and prepare notes 2 To understand about

different types of risk and their implications in life, business, and other human activities through case study and prepare notes. 3 To get thorough idea about pure and speculative risk and prepare notes. 4 To develop an idea about management of risk and different methods of handling risk Meaning/concept of risk, financial non financial risk, fundamental and Particular risk Physical and moral hazard, Risk, Peril and hazard Features of insurable risk. Pure and speculative risk Risk management,

management of pure risk, Management of speculative risk Group discussion Group discussion Case study Group discussion Reference books, Newspaper cuttings Reference books, Journals Newspaper cuttings Ref. books Broucher Newspaper cuttings Ref. books Newspaper cuttings Chart,

Assignment Notes, Acquired conceptual knowledge Chart, Notes Discussion Acquired conceptual knowledge Chart, Notes Discussion Acquired conceptual knowledge Chart Acquired conceptual knowledge Notes 2 Hrs 2 Hrs 3 Hrs 2 Hrs30 Teachers Sourcebook VHSE General Insurance DAILY PLAN Activities Feed back

Strategies used: Discussion Activity I : Discussion Suppose you visit an insurance market. Analyse: 1 Sellers in the insurance market 2 Buyers in the insurance market 3 Intermediaries in the insurance market. The above details enable the students to get an idea about the insurance market. The parties in the insurance market are insurers, insurance agents and prospective buyers. Activity II : Field Visit A field visit can be organised to United India Insurance Company, Changanassery branch. Planning Students are given an overall idea about insurance market before the trip is organised. The following details should be collected. 1 Prospective buyers of the insurance market 2 Who are sellers of the insurance market 3 Who are the intermediaries of the insurance market A discussion may be carried out in the classroom to prepare an interview schedule for interviewing the following persons. 1 Managers of United India Insurane Company 2 Development officers of United India Insurane Company

3 Agents of United India Insurane Company 4 Prospective buyers in the insurance market like 1 Individuals 2 Firms 3 Industrial Concerns 4 Hospitals Class: Fisrt Year Date: Subject : General Insurance Unit : Insurance Market Place Time : 1 Hr Curricular Objectives: To make a detailed analysis about the marketing strategies adopted by the insurers for selling their products through field visit to an insurance office and analyse about marketing strategies and prepare report. Almost all students have participated in the discussion, except Madhu and Sasi All students were able to get an idea about the parties in insurance market. All the students have participated in the discussion and have actually involved in preparing the interview schedule.31 Planning

The remaining 12 hours can be utilised for the following purpose: The students are required to proceed on the trip as per the schedule fixed. 4 periods are needed for the trip. Ask them to prepare a report on the basis of the data collected from the insurance office. On the next period brief discussion among the group can be arranged. On the next two periods the leader of each group is asked to present the details of report. After discussion, suggestion can be incorporated in the final report. The students are required to prepare individual final report showing a Sellers in the insurance market b Buyers in the insurance market c Intermediar ies in the insurance market The remaining 5 periods can be utilised for this purpose The schedule and questionnaire must contain the following questions Question to manager and Development officer 1 State the area of operation of the company 2 What is the area of operation of the agents

3 What are the various classes of insurance 4 Types of policies issued in each class. Question to prospective buyers 1 Are you an insured person 2 In which company do you have insured 3 In which company do you have insured Question to agents 1 What is your qualifications to act as an agent 2 Have you fixed any target for the business durng the year 3 What is the target given by the insurer for the business during the year Activities Feed back32 Teachers Sourcebook VHSE General Insurance EVALUATION V The needs of the society determine the nature of education. Our e d u c a t i o n a l s y s t em i s u n d e r g o i n g rapid changes. As a part of this, new methods and scientific techniques are b r o u g h t i n t o p r a c t i c e . T h e s y s t em provides more importance to the learner- centered activities. Evaluation has to play a significant role in making the learning process more effective by providing diverse

experience to the students, keeping in view the skills to be attained continuously by them. This calls for a major shift in the evaluation process. Evaluation is a systematic process of collecting, analysing and interpret ing evidences of students p r o g r e s s a n d a c h i e v eme n t b o t h i n cognitive and non cognitive areas of learning for the purpose of taking a variety of decisions. As the curriculum is based on a particular vocation, capacity building in the selected vocation is the most important part and it should be evaluated accordingly. The technical skills, interest and devotion in the particular field, communication skills, analysis, organising and presentation skills etc. have to be evaluated. The personal and social qualities also have to be evaluated. Therefore the evaluation should be continous and comprehensive (CCE). Evaluation is a continuous process Learning is a continuous process and evaluation should be an integral

part of this process. Students acquire var ious ski l ls through a var iety of learning experiences organised by the teachers. Teacher must take steps to enable the students to participate in the learning process, to make i t a memo r a b l e e x p e r i e n c e . Ev a l u a t i o n through diverse experience ensures an all round development of the students and helps the teacher to make an assessment of his activities. Evaluation should be Comprehensive To make it comprehensive, scholastic, co- scholastic, technical skills, capacity building and personal qualities of the students should be evaluated. Learning is an active

mental process. Emphasis should be given to the evaluation of process skills as well as the product. Components of Evaluation 1.Terminal Evaluation (T.E) Terminal Evaluation should be in written form. The intention of the test must not be confined to memory test alone. It is an important tool for evaluating the facts, concepts, ideas

gained by the learner. While preparing questions for the terminal evaluation, more emphasis should be given to the level of application, analysis, s y n t h e s i s a n d e v a l u a t i o n t h a n33 Evaluation knowledge and understanding. The question should be framed in such a way that the students are able to apply their various mental processes such as . lRetrieves/recollects/retells information l Readily makes connections to new information based on past experiences and formulates intital ideas/concepts. lDetects similarities and differences. l Classifies/categorises/organises information appropriately. l Translates/transfers knoweldge or understanding and applies them in a new situations. lEstablishes cause-effect relationships. l Makes connection/relates prior

knowledge to new information/ applies reasoning and draw inferences. lCommunicates knowledge/ understanding through different media. lImagines/fantasises/designs / predicts based on received information. l Judges/appraises/evaluates the merits or demerits of an idea/ develops own solutions to a problem. 2. Continuous Evaluation(C.E) Tradi t ional ly, we were fol lowing only single evaluation tool which measures the intellectual capacity of the learner. To eliminate the limitations of this method we have to evaluate the multi- dimensional competencies of the learner with regard to the practicability and nature of subject . The fol lowing tools are advised for Continuous Evaluation. 1. Seminar 2. Assignment 3. Class Test

4. Project For recording the continuous evaluat ion class test (CT) is made compulsory along with any two of the above said tools. CT can be a written test, oral test (viva), Practical test. Sl. No Stages Points to be noted in stages Score 1 2 3 4 5 Planning and Organising Data Collection Content Preparation of paper Presentation of paper Topic, how to collect data, aids for presentation Literature review, relevance, Sources structure, content depth Arrangement of ideas, clarity , analysis, interpretation and evaluation Communication, participation and di s cus s ion, r epor t ing

seminar report 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 How to Evaluate ? 1. Seminar34 Teachers Sourcebook VHSE General Insurance Sl. No Stages Points to be noted in stages Score 1 2 3 4 5 Understanding about the content Comprehensiveness of the content Ability to present Conclusion Timelines Knowledge about the content Content coverage Structure, clarity language, creativity Observation and findings

Time bound completion 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 Sl. No Stages Points to be noted in stages Score 1 2 3 4 5 Planning Data Collection Analysis and interpretation Presentation of report Timeliness Relevance of the study, ident i f i c a t ion of probl em, selection of appropriate tools for data collection and analysis Ad e q u e c y , r e l e v a n c e a n d relaibility of the data(literature review, field visit, Interview, observation and discussion) Systematic arrangment of the

data analysis of the collected data and interpret, conclusions. Presentation of the report in logical and sequential order, authenticity of report, correlation with project diary Time bound completion 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 2. Assignment 3. Class Test Unit test must be conducted after the completion of each unit for diagnostic purposes and its average should be recorded in the evaluation report of the learner under the head class test. 4. Project35 Evaluation Distribution of Total scores of TE and CE The ratio of TE and CE fixed for the subject is 80:20 i.e. The maximum score fixed for TE is 80 and CE is 20.

The minimum score to be obtained for TE is fixed at 30% ie, 24 score. The minimum score to be obtained for TE + CE is fixed at 30% ie, 30 score. No minimum score is fixed for CE. 3. Practical Evaluation A student of commerce based vocat ional courses has to undergo pract ical work on typewr i t ing and computer application. Therefore practical evaluation is important for learning effectiveness. Indicators for PE varies according to the nature of the course. Distribution of Scores of PE The maximum score fixed for PE is 150; the minimum score to be obtained is fixed at 40% ie, 60 score. Typewriting English Paper I 20 Score Typewriting English Paper II 30 Score Computer Word processing 50 Score External practical/Viva Voce 50 Score Total 150 Score 1. Typewriting English - I Paper (Speed)140 hrs Maximum Score : 20 Time : 10 mts

To type write an ordinary printed passage containing 300 words, i.e., 1500 stroker (i.e. five strokes are t r e a t e d a s a wo r d ) wi t h mi n imum capital letters in double line spacing with ten degree margin on left and five d e g r e e s ma r g i n o n t h e r i g h t s i d e . Special attention should be paid to accuracy and neatness of execution. Note: Five strokes will be counted as a word. Each depression of a key or the space bar will be counted as a stroke. Two strokes are counted after a full stop (full stop is a dot put at the end of a sentence), Interrogation sign, an exclamation mark and colon. One stroke after and one before a bracket, quotation and hyphen and one stroke after a coma and semicolon. 2. Typewriting English - II Paper 140 hrs. Time : 1.30 Hours Maximum Score : 30 This paper will contain four questions. It is intended to serve as a test of the candidates knowledge of spelling, punctuation, printer's

correction and common abbreviation and the ability to present in proper form the fair copies for signature. This consists of a) Statement b) O f f i c i a l l e t t e r s , P r i v a t e l e t t e r s , professional letters with carbon copies c) Simple Government letters d) Display - Adver t isement , tender notice, notice 3) Computer Word Processing Maximum Score : 50 Content Outline Fundamentals of Computer l Application and usage of computers l Classification of computers l Functional blocks of a Computer l Input Unit Output Unit - Memory Unit l Block Diagram l Hardware / Software36 Teachers Sourcebook VHSE General Insurance l Memory Devices l High / Low Level Language l Operating Systems MS - Window

l Fundamentals of window - 95/98 l Components of Window l Application and usage of a Window l Desktop - Taskbar - Recycle Bin Word Processing l Basic feature and advantages over typewriting MS - WORD 97/2000 Getting started with Word l Starting Word l Learning the word window l Exiting Word Creating a Document Saving a Document l Saving the Document l Closing the created Document Working on a New Document l Creating a new document l Opening an existing document Editing the created Document l Navigating in Word document l Selecting text l Inserting and deleting text l Moving and copying text Formatting Text l Formatting with Toolbar l Formatting with the menus and

dialog boxes l Setting tabs and indentations lFormatting using shrink to fit features using clipart, auto shapes etc. l Documenting points with footnotes. Working with several documents lOpening several documents simultaneously l Switching between documents l Di s p l a y i n g mu l t i p l e d o c ume n t s simultaneously Managing Word Environment l Using views l Switching to outline view l Creating and editing outline text l Showing and hiding outline text l Zooming Documents l Displaying hidden codes l Splitting the document Formatting long documents l Using styles l Using lists Creating consistent look with templates l Using Templates l Modifying templates

Creating sections l Headers and footers lDividing the document into sections l Creating headers and footers More on editing l Finding and replacing a word in a document l Checking and correcting spelling Writing efficiency with the help of shortcut keys Making selling painless Spelling and Grammar, Auto correction features Incorporating Tables l Creating a word table l Formatting the table l Advanced table features Printing the document l Setting up the page for printing l Previewing and printing documents Using Mail Merge l Conducting a simple mail merge37 Evaluation l Merging mail list with form letters l Creating labels l Edit a data source

l Merging from other data base MS Excel l Creating worksheet l Inserting row and column l Functions MS Power point l Tools for presentation Indicators and scores for PE I Type Writing English Paper I 20 score Mistakes are Spelling mistakes, omission, overtyping, wrong spacing etc. Each mistake is treated as a stroke mistake. Five stroke mistakes are treated as a full mistake. Full Mistake Score 0 100% 1 98% 2 96% 3 94% 4 92% 5 90% 6 86% 7 82% 8 78% 9 74%

10 70% 11 64% 12 58% 13 52% 14 46% 15 40% (Mistake in strokes - 5 x full mistakes) A student who secured below C grade needs improvement II. Type writing English Paper - II (30 Score) Item Evaluation points % Score a Statement Neat ness 20 6 Proper alignment Systematic arrangement Punctuations b Private Letters/ Neatness 40 12 Official letters/ Proper format Professional Letters Quality of carbon copy (With Carbon Copy) Contents c Simple Government- Neatness letters systematic arrangement 20 6 Proper allignment Content Timeliness38 Teachers Sourcebook VHSE General Insurance d Display/ Attractiveness/neatness 20 6

Advertisement/ Proper allignment Tender notice Systematicarrangement Border designing/content Timeliness A student who secured below C grade needs improvement III. Computer Word Processing (50 Score) a Data entry: 20 10 (The indicators for Typewriting English Paper -I Can be adopted here also) Item Evaluation points % Score b Formating Correct fond 10 5 Allignment Line spacing Paragraph Columns c Table Creation of table 10 5 Addition or deletion of rows and coloumns Systematic arrangement of data Presentation Use of merge and split cells d Mail merge Creation of base data 30 15 Addition of field name Proper merging print preview e Creating work sheet Creation 10 5 Presentation

Content Addition/deletion f Functions Auto Sum 10 5 Rounding Currency Symbols Sort Editing39 Evaluation g Power Point Creation 10 5 Use of word art Use of clip art animation Slide show A student who secured below C grade needs improvement IV. External Practaical Cum Viva voce (50 Score) A. Pracaticals: 60 % 30 Score (a) Identification 10 Score (Identification of parts of Typewriter and Computer) (b) Procedure writing 10 Score [Write procedure for mail merge/preparation of statement/presentation in power point (Any one)] (c) Handling of equipments 5 Score (Use of tools for cleaning and oiling type writing machine and handling of computer stationery) (d) Output 5 Score B. Record

20% 10 Score [Type written and computer print outs of practical works (Speed and Second Paper) and practicals relating to Vocational subjects] C. Viva - Voce 20% 10 Score (Based on Vocational Subject) A student who secured below C grade needs improvement 4. Internship Evaluation Being a vocational course, a system to judiciously evaluate the required value addition and consequent capacity building in the selected vocational subject is highly essential. As the other evaluation components like CE, PE and TE cannot assess the vocational competencies and professional ski l ls acqui red by the students, an internship evaluation (IE) component has been introduced to meet this requirement. Internship evaluation should be done based on the following components. I. Regularity and punctuality A regular presence and habit of40 Teachers Sourcebook VHSE General Insurance

time bound completion of task is a must for attaining maximum efficiency. II. Value addition Value addition can be evaluated through conducting field visits/survey. The experiences gained through field visit and survey increases the level of intrinsic motivation and positive attitude towards the vocational field and there by increase his value as a skilled semi- professional. III.Capacity building Capacity building can be evaluated through conducting the following activities. 1. OJT/Simulated experiment 2. Performance- Camp/ Exhibition/ Clinic. 3. Performance- Production/Service cum Training centre. These components helps the students to practice the acquired skills in the real situation and there by increasing self confidence and promoting self reliance. Regularity and Punctuality can be

evaluated by 5 point scale. Whi le evaluat ing regular i ty and punctuality the attendence of the students and time bound completion of task have to be considered. The table given indicates the points that could be scored by each student. The maximum score fixed is 10. Therefore the score obtained by each student has to be converted out of 10. 12345 1 Regularity Never Often Usually Most of the Always regular regular regular time regular regular 2 Punctuality Never Often Usually Most of the time Always Punctual Punctual Punctual Punctual Punctual Rating scale T h e a im o f v a l u e a d d i t i o n i s t o measure the interest, devotion Group managment, perseverence of the learner in specific areas addition can be evaluated from field visit, survey and simulated experiments. Capacity building is aimed at measuring the skills of the learner from OJT/ production cum training centre/ research and development/ Value

graded area exposure.41 Evaluation IE Item Evaluation Weightage Score Indicators 1. Regularity and Punctuality 10 2. Value addition Field Visit 1. Attitude and readiness towards the task. 2. Capacity for observation. 3. Data collection. 4. Application of ideas. 5. Documentation/ recording. OR Survey 1. Planning. 2. Data collection. 3. Consolidation of data and analysis. 4. Drawing inference. 5. Reporting. 4/3/2/1 4/3/2/1 4/3/2/1

4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 20 3. Capacity building OJT/ Simulated Experiment/ Practical skill 1. Involvement/ Participation. 2. Skills in doing work/ Communication skill. 3. Time bound action. 4. Capacity for observation, analysis and innovation. 5. Documentation, Recording and display. OR Performance in camp/ Exhibition/ clinic 1. Ability for planning and organising. 2.Mastery of subject.

3. Ability for communication. 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 2042 Teachers Sourcebook VHSE General Insurance IE Item Evaluation Weightage Score Indicators 4. Innovation. 5. Involvement/Social commitment. OR Performace in production/ service cum training centre (PSCTC) 1.Mastery of vocational skills. 2.Managerial capacity. 3. Promoting self confidence. 4. Innovative approach.

5. Promoting self reliance. 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 4/3/2/1 Vocational Competency Items for Internship Evaluation Items Score Regularity & Punctuality 10 Field visit/survey(any one) 20 OJT/simulated experiment/ Practical Skill/ PerformanceCamp/exhibition/Clinic 20 Performance- PSCTC (any one) Total 50 The maximum score fixed for IE is 50; the minimum score to be obtained for IE is fixed at 30% ie, 15 score. A minimum of 80% attendence is required for promotion to the second y e a r . T h o s e wh o h a v e s h o r t a g e o f attendence should repeat first year. T h o s e wh o h a v e 8 0% a n d a b o v e attendence but failed to achieve 30% of internship evaluation (IE) will be

promoted to the second year. He has to improve the component in which he performed poor. He has to attain the minimum by improving the particular component to get eligible for appearing second year public examination.43 Evaluation Grading Continuous Evaluation is essential for activity based learning process. But the skills achieved by the students cannot be completely measured in terms of Marking system. Marking system proved unscientific in evaluating the growth and development of individual students both in cognitive and non- cognitive areas. Classification of students in terms of marks were both unjust and indefensive. I t also creates mental stress and strain among the students. To overcome this limitation, a popular mode of evaluating students performance known as grading system has been evolved. It is quite extensively used all over the world. At the Vocational Higher Secondary

stage, it is desirable to use a 9 point scale absolute grading to co- ordinate and record the evaluation. After giving the score, they are changed into percentages and appropr iate let ter grades are awarded corresponding to each percentage. This system is termed as absolute grading. The Score percentage and corresponding letter grade is given below: Score in percentage Grade 90 100 A + 80 - 89 A 70 79 B + 60 69 B 50 59 C+ 40 49 C 30 39 D+ 20 29 D Below 20 E How to record Evaluation Results? We have already discussed about the evaluation tools and their indicators. Using the indicators we have to record the scores on a prescribed format.

Inorder to record evaluation results, first CE elements are to be evaluated and recorded. Each CE element is given a score of 20 marks each. Therefore the maximum score of CE elements will be 60 marks,being three CEs are to be evaluated. Finally the total score must be reduced to 20 marks, for which a consolidated statement is necessary. Followed by this, a seperate consolidated

statement incorporating the scores of TE and CE, PE and IE are to be prepared. While preparing the schoolwise score sheet, seperate grades have to be given for CE + TE, PE, IE.44 Teachers Sourcebook VHSE General Insurance III Consolidated statement of PE Stream: Commerce Class - I year Subject: General Insurance Sl.No Name Type Writing Type Writing Computer External Total Grade Paper I Paper-II Word pro Practical 20 30 50 50 150 1 Muraleedharan 15 20 25 30 90 B 2 Shaji 15 25 30 35 105 B+ 3 Saji Kumar 10 20 30 30 90 B Sl. No1 Name Assignment Project Class Total Score

Te s t Score reduced 20 20 20 60 to 20 Score obt ai n e d 20 60 1. Muraleedharan 15 10 11 36 12 2. Shajee 10 15 14 39 13 3. Saji Kumar 14 14 14 42 14 I Consolidated Statement of C.E Stream: Commerce Class - I year Subject: General Insurance II Consolidated Statement of TE and CE Stream: Commerce Class - I year Subject: General Insurance Sl. No1 Name T.E C.E Total Grade Score 80 20 100 1. Muraleedharan 50 12 62 B 2. Shajee 60 13 73 B+ 3. Saji Kumar 70 14 84 A45 Evaluation S l. No Name Regularity& Field visit/ OJT/ Total Grade Panctuality Survey Practical Score skill 10 20 20 50

1. Muraleedharan 5 12 10 27 C+ 2. Shajee 6 15 16 37 B+ 3. Saji Kumar 8 14 14 36 B+ IV Consolidated Statement of I E Stream: Commerce Class - I year Subject: General Insurance46 Teachers Sourcebook VHSE General Insurance Sl no: Name CE 1 (20) Class Test 2 (20) Assignment 3 (20) Seminar/ Project Total (60) Total out of 20 TE (80) Total (100) Grade PE 1 2 3 4 5 6 Total Grade Internship Evaluation Regularity

and Punctuality (10) Value Addition (20) Capacity building (20) Format for Subject Wise Evaluation Total (50) Grade47 Evaluation Format for School wise Score Sheet CE TE Total Grade Accountancy Total Grade Management CE TE PE English

CE TE Total Grade General Foundation Course CE TE Total Grade Vocational Subjects CE TE Total Grade Total Grade Total Grade CE TE IE PE CE TE Total

Grade Business Studies Name Sl no:48 Teachers Sourcebook VHSE General Insurance Introduction Huma n l i f e a n d b e l o n g i n g s a r e filled with risk. In actual practice, the term r isk means f inancial loss. In insurance it means uncertainty about financial loss. The concept of risk in insurance refers only to uncertainty on economic matters. It has several meaning under different circumstances. In general sense, risk means exposure to danger. In a broader sense, risk is an uncertainty refers to unknown result of an event. The result may be helpful or harmful to human interest. Life without risk and uncertainty is not possible. The presence of risk and uncertainties in life, business, industry, etc. makes people alert, careful and imaginative in planning to counteract these uncertainties. I n t h i s c h a p t e r we s h a l l h a v e a detailed study on the concept of risk. Curriculum Objectives

l To obtain an understanding about the concept of risk and features of risks which can be insured through group discussion and prepare notes. l To get an idea about different types of risk and to analyse their implications in life, business, and other human act ivi t ies through case study and prepare notes. l To get a thorough idea about pure and speculative risk and its application in business through case study and discussion. lTo develop an idea about management of risk and different methods of handling risk through group discussion and notes. Syllabus l Concept of risk l Meaning of risk l Classification of risk l Financial and non-financial risk l Pure and speculative risk l Fundamental and particular risk l Management of risk Through the chapter (10hrs) For convenience this chapter is

divided into four heads. 1 Concept of risk 2 Meaning of risk 3 Classification of risk 4 Risk management 1 Concept of risk Suggested strategy - group discussion. (2 hrs) A group discussion can be initiated to develop a general understanding of risk and different types of risk in daily l i fe. THE NATURE OF RISK 1 UNIT WISE ANALYSIS VI49 Unit 1 The Nature of Risk Discussion points l What are the loss possibilities you face in your life. l What are the financial and nonfinancial risk. lDifferentiate between risk affecting a person and a group. After concluding the discussion the students may be able to get an idea of the concept and meaning of risk. Expected outcome A note on the concept and features

of risk, prepare chart. 2 Meaning and characteristics of Risk (2hrs) Suggested strategy group discussion & case study. A group discussion can be initiated to develop an idea about meaning and characteristics of risk. 1Theft conducted by an insured himself. 2 Tsunami Lead points l How risk arises? l What are the chances which create or increase any peril. l How hazard can be classified l Whether it is possible to predict events (risk) l Is it possible to insure all risks, if not. Why? lState the characteristics of insurable risk. The discussion may lead to get a clear idea about risk, peril and hazard and characteristics of risk. Expected outcome A note on the meaning and features of risk. Chart showing

physical and moral hazard. 3 Classification of risk (3 hrs) Suggested strategy - Case study. Students may be familiar with risks. To differentiate between pure and speculat ive r isk, the fol lowing case study may be adopted. 1 A bus collied with a scooter and the passenger of the scooter fortunately saved his life but the scooter was completely destroyed which cost Rs. 30,000/2 A business man purchased readymade textiles worth Rs. 1,00,000/-. Due to change in fashion, he sold the products at a reduced price and sustained a loss of Rs. 50,000/, otherwise he would have been earned a profit of Rs.75,000/3The motorbike of Mr. Hareendranath was stolen by somebody. It costs Rs.45,000/4 Tsunami affected the coastal area of Kerala during 2005, which originate in Sumatra due to earthquake in sea. It affected lakhs of people in di f ferent count r ies. Lakhs of people lost their life and

properties costing crores of rupees. Lead points l Can you identify the risks involved. l To whom the loss financially affects due to motorbike and Tsunami. l Can you differentiate the nature of losses. l Similar case studies can be cited in the case of financial and nonfinancial risk. A discussion may be carried out and the students may be able to classify different types of risks.50 Teachers Sourcebook VHSE General Insurance Expected outcome lA chart may be prepared by students showing different types of risks. lPreparation of notes showing classification of risk. 4 Risk management (3 hours) Suggested strategy - group discussion. A discussion can be initiated to identify different elements of reducing risk. Separate discussion should be arranged for each class of risk.

Emphasis should be given for reduction of moral and physical hazard. Lead Points l What measures would you suggest to reduce financial risk? l Can you suggest certain measures to reduce (manage) pure and speculative risk? l How can you manage moral hazard? l After discussion the students are able to understand various methods of risk management. Activity Ask the students to prepare a chart filling up the blanks. Expected outcome A note on methods of risk management. Prepare chart showing different methods of risk management. Assignment 1 What are the possibilities of fire in a house. Explain the possible measures to reduce fire. 2How the road accident can be reduced. Prepare a report on it.

C.E Possibilities 1 Class test 2 Assignment Basis Pure Risk Speculative Fundamental Particular Financial Non-financial Risk Risk Risk Risk Risk l Nature Produces Produces ? ? Finacial ?

only loss loss as well Involveas gain ment l Risk Insurance management l Affected Individual/ Whom Business group lObjectives Conc ept s / Ideas Process skills Activity Materials Evaluat ion 51 Unit Analysis The Nature of Risk UNIT ANALYSIS 1- NATURE OF RISK l To get a clear idea about concept and meaning of risk. l To differentiate between risk, peril and hazard To analyse characteristics of risk To differentiate between physical and moral hazard l To get an idea about different classes of risk. ? Affects a ? ? ? ? Avoidance ? ? ?

l To develop an idea about management of risk. l Meaning of risk, financial risk. Fundamental and Particular risk. Pure and speculative risk l Physical and moral hazard Characteristics of risk Risk, Peril and hazard l Pure risk and speculative risk Fundamental and particular risk Financial and nonfinancial risk l Reduction and management of risk. management of moral hazard Analysis Classification Comparison Draw, conclusion Classification Comparison Analysis

Comparative skill Analysis Observation Communication Draws conclusion Establish Relationship Group discussion Group discussion Group discussion and case study Group discussion Reference books, Newspaper cuttings Reference books, Journals Newspaper cutings Reference books Brochure Newspaper cuttings Reference books Newspaper cuttings Chart, Assignment Note prepared Acquired concept Chart Preparation of Notes

Participation in discussion Acquired concept Chart Notes prepared Participation Acquired concepts Chart Acquired concept Notes prepared52 Teachers Sourcebook VHSE General Insurance INTRODUCTION TO INSURANCE 2 Introduction Insurance is beneficial to individuals in many ways. Through scientific calculation of risk and distribution of financial loss individual, society and business is benefited. The premium collected by insurer is ut i l ised for meet ing thei r expenses and claims and the balance is invested in profitable industries. Thus, insurance speed up industrialisation. It has variety of functions to be completed in different circumstances.

Development of insurance is a symbol of development of industry, business and commerce. It also provides employment opportunities. Curriculum Objectives lTo make an idea among the students about the functions of insurance such as protection, financial stability, security, risk transfer, risk distribution, loss reduction, promotion of foreign trade and basis of credit thorough discussion and preparation of notes. lTo examine the benefits of insurance to individuals, business and society through discussion and preparing charts. lTo create an idea among the students about insurance contract, elements of contracts, and classification of contract through case study and general discussion and prepare notes. l To obtain information about the origin of insurance and its development through group discussion, reading materials and

prepare notes. Syllabus l Functions of insurance l Risks transfer l The benefits of insurane l Peace of mind l Loss control l Social benefits l Development of insurance l Insurance contract Through the chapter (10hrs) For convenience, this chapter is divided into 4 heads. 1 F u n c t i o n s o f i n s u r a n c e - ri s k transfer (3 hrs) 2 The benefits of insurance - peace of mind - loss control - social benefits (3 hrs) 3 Development of insurance (2 hrs) 4 Insurance contract (2 hrs)53 Unit 2 Introduction to Insurance 1 Functions of insurance (3 hrs) Suggested strategy - Brain storming and discussion A question is given to the students to identify the function provided by insurance.

Case 1 1 A businessman insured his life for Rs.10,00,000/- and he also insured his business under fire insurance for Rs.2,00,000/a A fire occured in the business premises and he incur red a loss of Rs.5,00,000/b After 5 years, he died out of an accident. The following questions are to be asked based on the above case. l What is the financial position of the businessman after the fire? l What is the position of his family after his death? l How does the insurance company compensate the loss? The points to be given by the students may be connected with the functions of insurance. Case 2 Saji approached SBT for a loan to purchase a cow. The bank sanctioned the loan and instructed him to insure the cow for the loan amount. After three months, the cow was affected by

a disease, but the insured carelessly handled the situation and it died. The insurer refused to pay the claim. l Why did the banker insist to insure the cow? lWhat will be the effect of insurance? l Why did the insurer refuse to pay the claim. l Consolidating the points, students should get the concept about various functions of insurance such as protection, security, financial stability, distribution of risk, loss reduction, f u n d f o r i n v e s tme n t , p r omo t i o n o f foriegn trade, basis of credit etc. Activity Expected outcome l Preparation of notes on functions of insurance. l Preparation of chart on functions of insurance. 2 Benefits of insurance (3 hrs) Suggested strategy - Group discussion 1 Students may be provided with an example of a businessman who has

insured his firm. Ask the students to discuss the following points:l What is the need for insurance? lHow will the insurer facilitate credit? l How sharing of risk is possible? l How can the job opportunities be increased? Teacher can cite suitable examples Functions Safety and ? security Basis of credit Loss reduction Financial stability ? Funds for investment ?54 Teachers Sourcebook VHSE General Insurance 2 L IC h a s a d v a n c e d Rs . 8 c r o r e s during this year to Kerala Water Authority for a project for supplying drinking water to Kuttanadu. l From where did they get the fund? l What is the benefit of investing in

such a socially benefited project? l Consolidating the above points, the students may get the concept about benefits of insurance to individuals, business, nation and society and the need for investment of funds. Activity Ask the students to fill up the table. Expected Outcome lPrepare notes on benefits of insurance l Prepare chart showing benefits of insurance to individuals, business, nation and society. 3 Development of insurance (2hrs) Suggested strategy - Seminar and discussion. A seminar can be conducted in the subject of development of insurance. Topic of the seminar Development of insurance Collection of information Relevant data such as origin of marine insurance, origin of life insurance, origin of motor insurance, nationalisation of life insurance, nationalisation of general insurance

and recent development of privatisation can be collected from the insurance offices, website of insurance companies and textbooks. Presentation Ask the students to present the paper. The moderator will conclude the session expressing his views. l Evaluat ion by the students and teacher. Preparation of report l Seminar is followed by a discussion incorporating all the points to be covered under the topic. Expected outcome l Report on development of insurance. 4 Insurance contract (2 hrs) Suggested strategy - General discussion and case study. A general discussion can be initiated. Parties Benefits Individual l Security and sefety l Eelminate dependency l Distribution of risk l l

l Business l Basis of credit l Provide security l Increase efficiency l Increase productivity l Business continuation l l l Society l Protection to family l Provide welfare l Capital formation and investment l Economic development l Socially desirable project l l l Nation l Increase national income l Nation building activities l Earn foreign exchange l Increase productivity l l l55 Unit 2 Introduction to Insurance 1 Mr. Murali offered a motor bike to

his nephew Shaji, if he secure A+ grade in his SSLC examinat ion. Shaji got A+ grade in the examination, but Murali refused to give bike. Shaji filed a suit against his uncle, but court rejected the petition. Lead points lWhy did the court reject the petition? l Is it a valid contract? l Can you identify the elements of contract? l Identify the parties to a contract? lWhether Shaji is competent to enter into a contract. l 2 Smt. Geetha offered to sell her car to Sathi for Rs.2,00,000 and the latter accepted the offer. Lead points l Whether the parties are competent to contract? l Whether the contract is legal? l What is the object of contract? l Consolidating the discussion the

students may be able to analyse elements of contract such as agreement, legal consideration, legal object, capacity of the party, possibility of performance, written form and registration. A group discussion may be initiated by asking the following questions. l What is voidable contract? lWhat is illegal contract, void, unenforceable contract? After conducting the discussion the students may be able to get the concepts like void, voidable, illegal, unenforceable contract. Expected outcome lNotes on insurance contract elements and classes of contract, and preparing chart. Assignment l Collect pamphlets and leaflets of different policies from insurance offices and explain the benefits of insurance. C.E Possibilities 1 Class test 2 Assignment

3 Seminar Development of Insurance l Lloyds Coffe House, in 14th Century. l Insurance in the minute form was originated in England among the fishermen. They used to give some money to a faitthful person before going to the sea. If they suffered any loss, it will be compensated by the person who keeps the money. l In India, insurance started in 19th century. The foreign companies started the business and it was marine insurance. l Up to privatisationObjectives Conc ept s / Ideas Process skills Activity Materials Evaluat ion Teachers Sourcebook VHSE General Insurance 56 UNIT ANALYSIS 2- INTRODUCTION TO INSURANCE l To make an idea about functions of insurance l To deepen the idea about benefits of insurance to individual, business and society l To get an idea about origin and development of insurance. l To get an idea about insurance contract and to classify the contract l Risk transfer, protection,

security, risk distribution, Invisible earnings l Benefits of insurance to individuals Benefits of insurance to business Benefits of insurance to society Investment of funds l Development of insurance Nationalisation and privatisation of insurance. l Meaning of contract, insurance contract Comparison Analysis draws conclusion Analysis, draws conclusion Identification Generalisation Comparison Classification Brain storming & group discussion

Group discussion Seminar Group discussion and case study Reference books, Paper cuttings Newspapers Reference books, Paper cuttings Reference books Paper cuttings Journals Reference books Chart, Preparation of notes Chart, Preparation of notes Assignment, Seminar Report Chart preparation57 Unit 2 Introduction to Insurance Introduction Human beings face various types of risk connected with several activities in the day to day life. Insurance is a method to reduce risk. Several types of insurance are

introduced to suit these situations. In this chapter different types of insurance suitable for reducing different types of risk are dealt with. Curriculum Objectives l To obtain knowledge about different types of insurances such as life, health, and non-life insurance through seminar, group discussion and prepare notes. l T o ma k e a d e t a i l e d a n a l y s i s o f property insurance such as crop insurance, building insurance, stock of goods insurance, machinery insurance etc. through case study and group discussion and prepare notes. l To get an idea about insurance of interest such as fidelity, guarantee, honesty of employee, etc. , through case study, group discussion and prepare notes. l To get an insight about the different aspects of liability insurances such as public liability, product liability, professional indemnity and employers liability through case

CLASSES OF INSURANCE 3 study, group discussion and preparing notes. l To acquire concepts about different aspects of fire, marine and motor insurance and to analyse their elements through group discussion and prepare notes. Syllabus lLife and non-life insurance insurance of person - Personal Accident insurance, sickness insurance, health insurance, pension scheme; l Insurance of property - building, ma c h i n e r y , a i r c r a f t , s t r e ame r s , stock of goods, cash, securities, crop, television, etc. l Insurance of interest - guarantee insurance, fidelity guarantee insurance, insurance of liability public liability insurance, product liability insurance, professional indeminity insurance, employers liability insurance.

l Fi re, mar ine and miscel laneous insurance. Through the chapter (20 Hrs) For the convenience this chapter is divided into 5 heads. 1Life and non-life insurance insurance of person, sickness insurance, health insurance and pension schemes (4 Hrs)58 Teachers Sourcebook VHSE General Insurance 2 Insurance of property - building machinery, aircraft, steamers, stock of goods, cash, securities, crop insurance (4 Hrs) 3 Insurance of interest - guarantee and fidelity guarantee insurence (3Hrs) 4Insurance of liability - public liability, product liability, professional indemnity, employers liability (5 Hrs) 5Fire, Marine, Motor, Burglary, Aviation insurance (4 Hrs) 1 Life and non-life insurance (4 Hrs) Suggested strategy - Discussion and seminar The students may be able to get a thorough knowledge about life

insurance, personal accident insurance, sickness insurance, health insurance and pension scheme in the classroom discussion. Af ter that a seminar is to be conducted. The different stages to be adopted in the seminar is as follows. 1 Selection of Topic The topic of the seminar is life and non-life insurance. 2 Assignment of sub-topics to group members Different types of policies coming under the above head are given to group members. 3 Collection of relevant information Information required for seminar can be collected from various sources namely insurance officers, agents, development officers etc. 4 Preparation of the paper: Based on the information collected the presenter may prepare a report and present it. 5 Evaluation: Both teacher and student evaluate the programme.

Activity Ask the students to prepare a chart showing classification of insurance. Expected outcome Seminar report showing the meaning and features of different classes of insurance. 2 Insurance of property (4 Hrs) Suggested strategy - Case study 1 The house worth Rs.8,00,000/- of Mr Soman was badly damaged due to earthquake and suffered a loss of Rs.2,00,000/2 Due to heavy rainfall the paddy c u l t i v a t e d b y J o s e Ma t h ew wa s completely destroyed. He expected a loss of Rs.50,000/- He has insured his crops with United India Insurance Co. Teachers are expected to cite similar examples. Insurance Non-life Insurance Life Insurance Traditional Classification

Modern classification Insurance of person ? ? Insurance of interest Fire insurance ? Miscellaneous Insurance59 Unit 2 Introduction to Insurance Lead points l Can you ident i fy the classes of insurance mentioned in above losses. l Cite examples suitable to public liability, product liability and so on. Consoldating the case study and group discussion students may be able to get the concept of product liability insurance and the risk covered under the policy. After the case study, the students may be expected to analyse the

features of different types of property insurance such as crop, building, stock of goods, machinery, etc. Expected outcome lPrepare notes on property insurance. l Chart showing different types of property insurance. Insurance of interest (3 Hrs) Suggested strategy - Case study and group discussion 1The salesman of Pallipurath Jewellery took gold ornaments of 500gms without informing the owner of the jewellery. Discuss the situations on the basis of the following conditions: (a) T h e o w n e r i n s u r e d t h e jewellery for Rs. 2 crores. (b) He was not insured Teacher can cite similar examples. Discussion points l Which type of risks the jewellery owner faces. l What kind of insurance can cover such risks. l

Consolidating the case study and group discussion students may be able to get the concept of insurance of interest and risk covered under the policy. Expected outcome Notes on insurance of interest. 4 Insurance of liability (5 Hrs) Suggested strategy: Case study and group diuscussion. 1 The Gallery of Maharaja Stadium, Palakkad was Collapsed. The spectators viewing the tournament between India and Pakistan, suffered serious injuries. The court ordered to pay compensation of 2 crores to the injured persons. 2 S k i n c r e am p u r c h a s e d b y Mr s . Sathikumari from a shop caused allergy to her face. Similar examples may be cited Discussion points l Who will pay the compensation to the injured. l Whether such l iabi l i t ies can be insured. If so, name the insurance of policy.

l From the points of case study and discussion, the concept insurance of liability and the risk covered under the policy may be consolidated. Expected outcome: Notes on liability insurance. 5 Fire, Marine and Miscellaneous Insurance (4 Hrs)

Suggested strategy: Group discussion A discussion can be conducted by giving examples and newspaper c u t t i n g s . S t u d e n t s ma y b e a b l e t o understand that there are insurance policies to cover risks of fire, marine and motor accident perils.60 Teachers Sourcebook VHSE General Insurance An exporter, Mr. Sudheer is having a godown and a motor vehicle. Discussion points: l What type of insurance is available to cover motor accident risk. l How can he insure the risk of loss of goods at godown. l How can he insure the risk of loss of exporting goods. l

The discussion may be consolidated stating the effectiveness of fire, marine and miscellaneous insurance based on various perils covered. Activity Ask the students to classify the following items coming under each class of insurance. l Insurance of person l Insurance of property l Insurance of liability l Insurance of interest 1 Motor vehicles 2 Stock of goods 3 Accident of person 4 Machinary and plant 5 Refrigerator 6 Workers in a factory 7 Cashier in a bank 8 Aeroplane 9 Ships 10 Freight 11 Cargo 12 Risk of doctor 13 Risk of producer 14 Rubber plantation 15 Pigs

16 Lifts in a building 17 Plate glass 18 Jewel lery 19 Baggage 20 Bankers risk on advance 21 Risk of school going children 22 Cancer 23 Singer 24 Risk of third party 25 Race horse Expected outcome Notes on fire, marine, motor and aviation insurances. A chart can be prepared stat ing di f ferent types of policies. CE Possibilities l Class test l SeminarObjectives Conc ept s / Ideas Process skills Activity Materials Evaluat ion 61 Unit Analysis Classes of Insurance UNIT ANALYSIS 3- CLASSES OF INSURANCE l To obtain knowledge about different types of insurance such as life, health and nonlife and to analyse its features l To get the concept of

property insurance l To get an idea about insurance of interest. l To get an insight about the meaning of liability insurance. l To examine the effectiveness of fire, marine and miscellaneous insurance l Meaning of life insurance Meaning of Health Insurance Sickness insurance Insurance of person pension schemes. l Machinery breakdown insurance. Building insurance, Stock of goods insurance. l Fidelity guarantee insurance l Public liability insurance. Product liabilitiy insurance Professional indemnity

Employers liability l Fire insurance, Marine Insurance Motor insurance Identification, analysis,. classification, communication Observation Comparison Observation Analysis Analysis, communication, Observation Analysis, comparison, Communication, Observation Seminar Case study and Group discussion Case study and group discussion Case study and Group discussion Group discussion and case study Reference books, Broucher, Leaflets,

Advertisements Reference books, Paper cuttings Leaflets Reference books Paper cuttings Reference books Paper cuttings Reference books Paper cuttings Chart, Preparation of notes Acquired concept Report of the seminar Participation in discussion Prepared notes Prepared notes Acquired concepts Participation in casestudy Chart Prepared of notes Acquired concepts Chart Prepared of notes

Acquired concepts62 Teachers Sourcebook VHSE General Insurance Introduction Insurance contracts are governed by certain principles. These principles facilitate human beings to insure their subject matter against various risks faced by them. These principles are the legal base of insurance contract. It provides a legal enforceability to the insurance contract. Considering the growing importance of insurance in the dayto-day life, it may be very necessary for the students to go through the important principles governing the contract of insurance. Curriculum Objectives l To develop an idea about Insurable Interest and to analyse its implications while insuring a subject matter, to understand the financial interest in a subject matter and to differentiate insurance and gambling through case study and group discussion and prepare notes. l To analyse the ethical values of

disclosing material facts and effects of non-disclosure of it, through brain storming and general discussion, prepare notes. PRINCIPLES OF INSURANCE 4 l To get an idea about the procedure of payment of compensation to the insured and its mode of payment through case study and prepare notes. l To obtain a clear knowledge about the application of the principles of subrogation and the right of the insurer after payment of claim through case study and prepare notes. l To critically evaluate the right of the insurer incase of double insurance and the method of payment of claim and to prove that the principles of indemnity, subrogation and contribution are corollary to each other. l To classify the causes of accident and identify the direct causes of

accident and remote cause of accident through case study and prepare notes. Syllabus l Principles of insurable interest l Principles of utmost good faith l Principles of Indemnity l Principles of subrogation l Principles of contribution l Principles of proximate cause63 Unit 4 Principles of Insurance Through the chapter (20 Hrs) For the convenience this chapter is divided into 5 heads. 1 Insurable interest (4 Hrs) 2 Utmost goodfaith (4 Hrs) 3 Indemnity (4 Hrs) 4 Subrogation (4 Hrs) 5 Contribution and proximate cause (4 Hrs) 1 Insurable Interest (4 Hrs) Suggested strategy - Case study 1Anu and Manu are intimate friends. Both of them have purchased CD player costing Rs. 10,000/- each. Manu made a proposal to insure their CD player.

He took the responsibility of insuring them. Manu went to the Insurance office and insured his CD player, but the insurance Company refused to insure the CD player of Anu. Lead points l Why the company accepted Manus offer. l Why the company rejected to insure Anus CD. l What will be the effect of insuring a subject matter having no monetary interest. l 2Sindhu disposed off her house which was insured on March 30th 2004,costing Rs.18,00,000. On June 2004, the house was purchased by Bindhu. Due to fire a portion of the house was damaged and expected a loss of Rs.500000/- She approached the company for compensation but they rejected the claim. Lead points lWhy the company rejected the claim

lIs it possible to transfer the insurance policy l Can Sindhu claim the compensation. l Consolidating the above points the students may be able to get the concept of insurable interest and to analyse the elements of insurable interest such as transfer of insurable interest essentials of insurable interest, how insurable interest arise, t ime when insurable interest must exist (including life insurance) Activity Ask the students to prepare a chart showing the relationship which create Insurable interest. Expected outcome Prepare notes on insurable interests 2 Utmost goodfaith (4 Hrs) Suggested strategy - Brain storming and discussion 1 Students are asked - What details would you give to insurance company for insuring your house. 2 Their suggestions are recorded.

The fol lowing quest ions may be asked to lead further discussion. Discussion points lWhat will be the effect of not disclosing some details. l Some details need not be disclosed by insured. What are they (exempted material facts) l Can you di f ferent iate between a commercial contract and insurance contract. lSome details are given to the in s u r e r t o m i s l e a d h i m ( m i srepresentation, fraud, concealment). T h e n wh a t wi l l b e t h e e f f e c t o f insurance contract.64 Teachers Sourcebook VHSE General Insurance Consolidating the above points the students may be able to get the meaning of the mater ial facts and utmost goodfaith. The students must be able to differentiate between a commercial contract and insurance contract (goodfaith Vs. utmost goodfaith), effects of non-disclosure of material facts. Activity Ask the student to prepare a chart

enlisting the material facts to be disclosed by the insured under different types of insurances. Expected outcome l Prepare notes regarding utmost goodfaith. 3 Indemnity (4 Hrs) Suggested strategy - Case study 1 Pepper costing Rs.10,00,000 was insured under fire insurance on Feb. 2004. Due to accidental fire in the godown, it was completely destroyed in April. The claim was intimated by the insured for Rs. 10,00,000/-. The insurance company estimated the loss at Rs.8,00,000/- on the basis of market value of pepper at the time of loss. (a) Why the company does not allow Rs.10,00,000/-. (b) Suppose the market value of the pepper at the time of loss was Rs.12,00,000/-. How much compensation will be given by the insured. (Indemnity is limited to sum insured)

Lead points l Why the company paid compensation for Rs.8,00,000/- only. l What is the mode of payment of compensation (method of indemnity) l Is this principle applicable to life and personal accident insurance. Suitable examples may be cited Consol idat ing the above points, students may be able to get concept of indemnity, limit of indemnity subject to sum insured, mode of payment and the fact that the insured is not al lowed to make prof i t . Indemni ty principle is not applicable in life insurance as monetary compensation is not possible in life insurance. Activity Ask the student to prepare and complete the chart. Expected outcome Notes on indemnity. 4 Subrogation (4 Hrs) Suggested strategy: Case study l The house of Vinod was insured under fire insurance for

Rs.5,00,000/-. Due to the fault of Gopu the bui lding was par t ial ly burned. The loss estimated is for Rs.2,00,000/- and company paid the amount to Vinod. He also got an amount of Rs.2,00,000/- from Gopu. Lead points l Whether Vinod is entitled to get compensation from Gopu. Mode of Indemnity Cash/ Cheque ? ? Repair65 Unit 4 Principles of Insurance l Whether Vinod has a right to claim compensation both from insurer and Gopu. lCan the insurer recover the amount from Gopu. l Consolidating the points the students get an idea about principles of subrogation, right of the insurer after the payment of loss and the fact that this principle is complementary to principles of indemnity. The insurer obtains a letter of subrogation from the

insured for exercising the subrogation rights. Salvage is taken over by the insurer. Expected outcome: Preparation of notes on subrogration. 5 Contribution (2 Hrs) Suggested strategy: Case study aSoubhagya insured her shop against fire for Rs.10,00,000/- each with Oriental Insurance Company and United India Insurance Company. A fire occured and stock of Rs.2,00,000/- was destroyed. She claimed the loss from both the companies for Rs.2,00,000/- each. But both the companies paid Rs.1,00,000/- each. b Oriental Insurance Company paid the entire loss of Rs.2,00,000/- to Soubhagya and the Oriental Insurance Company recovered Rs.1,00,000/- from United India Insurance Company. Lead points l It is possible to claim Rs.2,00,000 each from both the insurers. If so

what is the impact of indemnity principle. lWhy did Oriental Insurance Company recovered Rs.1,00,000/from United India. l Is this principle applicable to life and personal accident insurance. l Is it possible to insure the same subject matter with more than one insurer l Consolidating the discussion, the students may be able to understand double insurance (insuring with more than one company) claim is p r o p o r t i o n a l t o s um i n s u r e d . T h e formula for calculating contribution = sum insured total sum insured loss x loss This principle is not applicable to life and personal accident insurance. This principle is complementary to principles of indemnity and subrogation. Expected outcomes

Preparation of notes. 6 Proximate cause (2 Hrs) Suggested strategy: Case study A person insured under a personal accident policy went out hunting and met with an accident. Due to shock and weakness, he was unable to walk while lying on wet ground he contracted cold which developed into phnemonia which cause his death. The court held that claim is payable. Lead points l What is the actual cause of death? l If there are more than one cause, which cause will be considered by the insurer. l Reasons for getting claim.66 Teachers Sourcebook VHSE General Insurance l Why the court ordered to pay the claim. Consoldating the points students may get an idea of proximate cause and remote cause. Assignment 1 Ask the student to prepare a chart showing principles of insurance. 2 Prepare a chart showing different

methods of indemnity. 3 Ask the students to prepare notes on prerequisi tes of cont r ibut ion principle. Expected outcome l Preparation of notes C.E Points l Class test l AssignmentObjectives Conc ept s / Ideas Process skills Activity Materials Evaluat ion 67 Unit Analysis Principles of Insurance UNIT ANALYSIS 4- PRINCIPLES OF INSURANCE l To develop an idea about insurable interest l To develop an idea about utmost goodfaith l To get an idea and meaning of indemnity l To get an idea about meaning of subrogation l Financial interest in a subject matter. Insurance and gambling Essentials of insurable interest. Time when insurable

interest must exist. l Disclosure of material facts, difference between commercial contract and insurance contract. Effects of non-disclosure of material facts l Concept of indemnity, limits of indemnity is limited to sum insured, mode of payment. Indemnity is not applicable to life and PA insurance. l Concept of subrogation, right of the insurer after the payment of loss subrogation is corollary to the principles of indemnity, subrogation is not applicable to life and PA insurance Identification Observation Analysis Analysis Comparison

Observation Communication Analysis Comparison Observation Communication Analysis Identification Observation Group discussion and Case study Brain storming and discussion Case study and Group discussion Group discussion and case study Reference books Reference books Reference books Reference books Prepared notes Acquired concepts, Participation in group discussion Prepared notes Acquired concepts,

Participation in group discussion Prepared notes Acquired concepts, Participation in group discussion Prepared notes Acquired concepts, Participation in group discussionObjectives Conc ept s / Ideas Process skills Activity Materials Evaluat ion Teachers Sourcebook VHSE General Insurance 68 l Concept of contribution, double insurance, prerequisites of principles of contribution. Not applicable to life and PA insurance corollary to principles of indemnity and subrogation l Concept of proximate cause l To get an idea about contribution principles l To get an idea about principles of causa proxima Analysis Identification

Communication Analysis Communication Comparison Case study and Group discussion Case study and Group discussion Reference books Reference books Chart Prepared notes Acquired concepts Chart Prepared notes Acquired concepts69 Unit 5 Underwriting and Claims Introduction The term underwriting has several meanings. In the broadest sense, it refers the entire transactions of insurance business. Thus, insurance companies are referred to as underwriters. In a restricted sense underwriting is the process of accepting or rejecting risks. If a risk is acceptable underwriting is further

concerned with the fixing of rate of premium and other terms and conditions of insurance contract. In this sense, the term underwriter is used to indicate the man who conducts the technical side of business, ie, that part of insurance function which deals with acceptance of risks as distinct from other f u n c t i o n s s u c h a s d e v e l o pme n t o f business, accounts, investment etc. Curriculum Objectives l To analyse the process of under writing a new business, to compare the methods of underwriting personal and commercial insurance and to understand the basis of calculating premium through a discussion and seminar and prepare notes on it. l To obtain information regarding claims related to life insurance and general insurance and to get an UNDERWRITING AND CLAIMS 5 idea about notification of claims,

settlement of claims and disputes by conducting a discussion and interview with an insurance expert and prepare notes on it. Syllabus The underwriting process. The underwriting of personal insurance and commercial insurances. Premium calculation- claims Life Insurance claims, Claims notification in connection with general insurance, claims settlement, adequacy of cover, disputes. Through the chapter (20 Hrs) For convenience the chapter is divided into two heads 1. U n d e r w r i t i n g - u n d e r w r i t i n g o f personal and commercial insurance, premium calculation (10hrs) 2. C l a i m s - l i f e i n s u r a n c e , g e n e r a l insurance, claims notification, settlement of claims, disputes (10hrs) 1 Underwriting Process ( 10 hrs) Suggested Strategy : Discussion and Seminar Seminar can be conducted with a general introduction about the

objectives of underwriting, premium calculation and underwriting of personal and commercial insurance.70 Teachers Sourcebook VHSE General Insurance I. Planning Stage l Brief introduction of the topic l Identify the group l Identify the presenter l Smal l areas can be assigned to groups. lThe risk possibilities of the subject matter a) Physical hazard b) Moral hazard lIdentifying the prospective customer. II. Data Collection l Brochures l Reference books l Consulting with insurance experts III. Presentation Stage : l Wh i l e p r e s e n t i n g t h e s emi n a r. Students can comment on the topic including collection, opinion and suggestion lModerater will conclude the session by presenting his views

l Evalution l Seminar report Seminar is followed by a discussion At the end of the final session students reach into a conclusion about the process of underwriting, the methods of understanding personal and commercial insurance and basis of premium calculation. Expected outcome l Seminar report showing objectives of underwriting, methods of underwriting, personal and commercial insurance and basis of premium calculation. Activity:Policies Age group Period Premium Endowement 22 20 ? Policy Jeevan Anand 28 25 ? Marriage 2 20 ? Endowement Policy ??? 2 Claims and Settlement of claims (10hrs) Suggested Strategy: Discussion with an expert and interview.

A classroom discussion may be conducted about the procedural aspects of settlement of claims and for conducting interview with insurance officer for getting informat ion about legal aspects of settlement of claim. The fol lowing quest ions may be included in the schedule. Lead Points lWhat are the aspects to be considered before accepting a claim? l Who can receive the claim? l What are the evidences of loss to be submitted by the insured? l How dispute is settled? l Considering the above points, questions should be framed before interviewing the expert. After the interview a discussion may be carried out consolidating the major points. Then the students must get an idea about settlement of claims r e l a t i n g t o l i f e i n s u r a n c e , g e n e r a l71 Unit 5 Underwriting and Claims

insurance, notification of claim, settlement of claims and disputes. Assignment 1 Ask the students to prepare a note on different aspects of underwriting a life insurance policy. 2 Ask the students to collect different forms from the insurance companies and fill it up. Expected Outcome: l Preparing notes l Chart showing information in life and non-life claims l Prepare report of interview CE Possibilities l Class test l Assignment l SeminarObjectives Conc ept s / Ideas Process skills Activity Materials Evaluat ion Teachers Sourcebook VHSE General Insurance 72 UNIT ANALYSIS 5- UNDERWRITING & CLAIM l To get an awareness about underwriting l To have an idea about claim settlement Process of underwriting

underwriting a new b u s i n e s s , me t h o d s o f underwriting, calculation of premium Settlement of claim of life and general insurance and disputes Observation Analysis Draw Conclusion Observation analysis Communication skill Group discussion Seminar dicussion and Interview Reference books Data collection Brochures Consulting with experts Reference books, interview with experts Prepared notes seminar report Acquired concepts

Prepared notes Acquired concepts Report of interview73 Unit 6 Insurance Documentation Publicity Introduction Generally, insurance policies are issued on the basis of proposal forms duly filled by the proposer . If the proposals are accepted , a cover note will be issued except in the case of life insurance. Afterwards the insurance certificate will be issued. Incase of life insurance, renewal of pol icies are automat ical ly done on payment of each premium. But, in case of general insurance, renewal of policy is optional. Curriculum Objectives lTo undertake a project on the docments issued by the insurer in different occasions and to list out their contents. The students may be able to analyse the uses of different form issued by the insurer and their necessities. l To establish the fact that renewal of general insurance policy is

opt ional and i t can be done by paying renewal premium from the group discussion and making notes. Syllabus Insurnace documentation and publicity: Proposal forms, polices, cover noes & certificates renewals, Nonp a y m e n t o f p r e m i u m s , l o n g t e r m agreements. INSURANCE DOCUMENTATION AND PUBLICITY 6 Through the chapter (20 hrs) For convenience this chapter is divided into 2 heads 1. P r o p o s e d f o rms , p o l i c i e s , c o v e r notes and certificates ( 15hrs) 2. R e n e w a l s , n o n p a y m e n t o f premium, long term agreements (5hrs) 1 Proposal forms, policies, cover notes and certificates ( 15hrs) Suggested Strategy : Project I Selection of the Topic a Identifying the problem The Insurance Companies issue v a r i o u s f o rms a n d c e r t i f i c a t e s f o r effecting insurance policies. Do you

know the types of forms issued by the companies and how they can be filled up? What are the certificates issued by the insurer. bFormulation of title - Title Insurance documents II Objectives 1 T o i d e n t i f y d i f f e r e n t f o rms a n d documents used in insurance business. 2 To analyse the features of different forms and documents used in insurance.74 Teachers Sourcebook VHSE General Insurance III Planning a Formulation of hyposthesis l Insurance Companies use variety of forms and documents in their business. l Some forms and certificates are not required in certain kinds of policies. b Methods and techniques It is proposed to visit the branch offices of the LIC, Oriented Insurance Company and the National Insurance

Company. c Identify the source of data The data may be collected through questionnaire and interview. d Collection of data The various forms can be collected by visiting the branch offices of LIC, Oriental Insurance Company and National Insurance Company through interview with the branch manager, development officer and other staffs. l Whether proposal forms are needed for all kinds of insurance? lWhat are the various types of Insurances, where the certificates and policies are issued. lHow the proposal forms and certificates are filled up? lWhat are the details collected through proposal forms? lWhat is the need of issuing certificates of insurance? l What is the need of issue of policy? l What is the need of the cover note? l What is the need of the Agents Confidential Report? l How the claims are set t led and

whether any forms are used, settlement of claims. l An interview with the policy holders will be arranged and copies of certificates, cover notes and policies are collected. An interview can be arranged with a surveyor for collecting the following information. l What is the purpose of the survey? lWhat information os collected through survey? lWhat is the qualification of surveyor? l Whether licence is required to act as a surveyor? l e Analysis and interpretation of data The collected forms and certificates are classified and presented by learners in an attractive manner, specifying its uses. f Findings The collected forms can be presented in the form of a chart.

Type of List of forms Uses and Insurance and documents features General l Proposed form l Insurace l Cover note l l Insurance l policy l ACR l l Claim forms l Discharge voucher l Certificate of insurance Life l Proposed form l insurance l ACR l l Medical l Inspection report l Claim form75 Unit 6 Insurance Documentation Publicity IV Preparation report The report should be prepared by each learner in the format given in chapter Learning Strategies. The project can be presented by any one of the students in a class meeting or commerce club meeting. 2 Renewals, Non-payment of premium,

long term Agreements Suggested strategy : group discussion ( 5hrs) Di s c u s s i o n c a n b e i n i t i a t e d b y giving a case study. Ananthu insured his house for Rs.5,00,000/- on 1 st Jan, 2004. He sustained a loss of Rs. 2,00,000/on Jan 2, 2005 and claimed the loss from t h e i n s u r a n c e c omp a n y , Bu t t h e y refused. Discuss. Lead Points l Why did the company not paid the claim? l What is the duration of a general insurance policy ? l Whether it is necessary to inform the insured about the expiry of the policy? Similar examples can be cited by the facilitator. Consolidating the dicussion, the students may get the fact that the renewal of general insurance policy is optional. It can be done by payment of renewal premium. In case of long

term agreements no renewal is required annually. Expected out come l Prepare notes CE Possibilites l Class test l ProjectObjectives Conc ept s / Ideas Process skills Activity Materials Evaluat ion Teachers Sourcebook VHSE General Insurance 76 l To identify the different forms and documents used by the insurer and to analyse its features / uses. l To get an idea about renewal of policies and to analyse its necesity on the society Meaning of proposal form, claim form, cover note, issue of policy Meaning of renewal of life policy and general insurance policies Identification Comparision, analysis Problem Solving Arriving at conclusion.

Identification, analysis arriving at conclusions Project & group discussion Group discussion Reference books Collection of brochures & details from insurance offices Renewal forms collected forms Project-diary Project-Report acquired concepts Prepared notes UNIT ANALYSIS 6- INSURANCE DOCUMENTATION & PUBLICITY77 Unit 7 Insurance Market Place Introduction The term insurance market compr ises of insurers, buyers and intermediaries who bring the two together. The insurers are GIC of India and its four subsidiaries, LIC, PLI, SLI and private companies. The buyers are individual members of the publ ic, traders, exporters and importers,

industrial and commercial organisations, clubs, associations and hospitals, etc. The intermediaries are those who bring the insurer and the buyers together . They include the agents/ advisors, development officers and brokers duly licenced by the authorities. Curriculum Objectives l To make detailed analysis about the marketing strategies adopted by the insurers for selling their products through field trip, observation and prepare reports. lTo collect information about re-insurance and different methods of re-insurance and to analyse its necessity in society through case study, group discussion and prepare notes. Syllabus The insurance market place insurance market, sellers, INSURANCE MARKET PLACE 7 intermediaries, buyers - insurance

brokers, insurance consultants, reinsurance. Through the chapter (20 hrs) For convenience this chapter is divided into 2 heads 1. I n s u r a n c e m a r k e t , s e l l e r s , intermediaries, buyers, insurance brokers and insurance consultants (13 hrs) 2. Re-insurance (3 hrs) 3. Methods of re-insurance (4 hrs). 1 Insurance Market (13 hrs) Suggested Strategy : Field trip and group discussion A field trip can be organised to insurance market (visiting LIC, GIC, PLI, SLI and private companies, advisors, agents, etc.). Students should be given an overall idea about insurance market before the trip is organised. They are helped to prepare an interview schedule in the classroom. The following aspects are included in the schedule: Lead Points l How do you sell the product - what strategies are used. l Area of operation of the company

l How will you make an awareness78 Teachers Sourcebook VHSE General Insurance in the mind of the prospective buyers. l Who are the prospective buyers and customers in the insurance market. lWhat is the educational qualifications of the agent or brokers? l Whether any training programmes are available to the agents. l After the field trip a group discussion is to be car r ied out for consolidating the points and report is to be presented by each group. Activity l Ask the student to prepare a chart showing the various parties in the insurance market. l Ask the students to list out various insurance companies in public and private sectors in the form of chart. Expected out come Field trip report covering marketing strategies adopted by the insurer

2 Re-insurance (3 Hrs) Suggested strategies: Case study and group discussion Ceramics Ltd. insured with United India Insurance Company for a sum of Rs . 1 0 0 c r o r e s . Un i t e d I n d i a a g a i n insured the risk with National Insurance for Rs.50 crores. Lead points l Why did united India re-insured the part of the risk with National Insurance. lWhy didnt they re-insure the whole risk with National Insurance. l Whether United India may have to give premium to National Insurance? l Did United India get any benefit from the re-insurance? l Consolidating the discussion and case study the students get an idea about re-insurance. They must get the fact that re-insurance is an arrangement whereby an insurer who has accepted an insurance tranfer a part of the risk to another insurer so

that his liability on any one risk is limited to a figure proportionate to his financial capacity. 3 Methods of Re-insurance (4 Hrs) Suggested strategies: Group discussion Certain cases may be gvien to the students for discussion. l United India Insurance Company accepted an insurance policy for Rs.50 lakhs out of which they transferred Rs.15 lakhs to Oriental Insurance Company to reduce their liablity. But the latter rejected the proposal. l Cholamandalam Insurance Compny and Tata AIG Insurance Company made an agreement between them that they will re-insure 50% of the original insurance policy accepted by each other. lSBI Life Insurance made an agreement with life insurance corporation of India that the latter will accept any liability of the SBT Life Insurance Company if their liability exceeds 25 lakhs of rupees. Analyse the case and explain the

method. Similar exmples can be cited by the facilitator for all other methods. Consolidating the case study and group discussion the students get the fact that there are different79 Unit 7 Insurance Market Place re-insurance methods such as facultative method and tready methods, re-insurance pool and umbrella cover. Activity Ask the students to prepare a chart showing different re-insurance methods. Expected outcome: l Prepare chart on different methods of re-insurance Assignment 1 Ask the students to prepare a note on re-insurance and different types of re-insurance methods. 2 Ask the students to prepare chart showing different methods of reinsurance. CE Possibilities l Class test l Assignment

Recent developments - Details may be given to students l Privatisation - list of Insurance companies, l Insurance Regulatory and Development Authority (IRDA) l Functions of IRDA l Qualification and appointment of agents/ advisors l Training of agents l Fees for appointment of agents l Surveyor l Licensing of surveyor and fees Re-insurance Methods Facultative (Auto Treaties facultative) Non-Proportional treateis Proportional treaties ? ? Pools ? ? ?Objectives Conc ept s / Ideas Process skills Activity Materials Evaluat ion Teachers Sourcebook VHSE General Insurance 80 l To get an idea about marketing of insurance policy

l To have an idea about reinsurance l To clasify different methods of insurance and to analyse its features. Insurance agent Insurance market buyers, sellers, brokers, insurance consultants Necessity of reinsurance. Methods of re-insurance Analysis, observation, identification Observation and generalisation Analysis classification. Field trip and group discussion Group discussion and case study Group discussion and case study. Reference books, Discussion with experts, paper cutting brochures Reference books Reference books

Preparation of note report, chart acquired concepts Acquired concept participation in discussion. Acquired concept participation in discussion. UNIT ANALYSIS 7- INSURANCE MARKET PLACE81 Unit 8 Application of Computers Introduction This chapter is designed to familiarise the students with different data processing systems data processing machines and also to acquire knowledge about E-Commerce and its possibilities in modern life. A computer is high speed electronic devices, which can receive, process, store and give output. It accepts data through key board and other input devices, process it and produce the desired results. Curriculum Objectives l To familiarise with the different

data processing systems such as ADP, EDP, IDP, .... through general discussion, reading materials and prepare notes. lTo acquire knowledge about different types of data processing machines through general discussion and prepare note. l To fami l iar ise wi th basic terms such as Hardware, Software, CPU, memory. Networks through general discussion reading materials and prepare notes. l To get an idea of administration virus infection and antivirus software through reading materials and prepare notes. APPLICATION OF COMPUTERS 8 lTo acquire knowledge about E-commerce and make a detailed analysis of its opportunities in business, through demonstration, interaction with experts and through reading materials and prepare notes. Syllabus

l Data processing - Data processing system - ADP, IDP, EDP - Types of data processing systems. lData processing machines classification of computer systems - input devices - output devices. Computer terminology - Hardware, Software - CPU, RAM - ROM - LAN - WAN - Laptop - Virus infection anti virus - E-Commerce. Through the chapter (20 hrs) For convenience this chapter is divided into 5 heads 1 Data Processing System 2 Data Processing Machines 3 Input Devices 4 Computer Technology 5 E-Commerce 1 Data Processing System (3 hrs) Suggested Strategy : General discussion A discussion may be initiated by asking some questions.82 Teachers Sourcebook VHSE General Insurance Lead Points l What is a data? l How data can be processed into information?

l The discussion may be concluded by focusing on the different processing systems used. Expected out come Notes on processing systems and its divisions. 2 Data Processing Machines (4 Hrs) Suggested strategy: General discussion A discussion may be initiated by asking some questions. Lead points lDo you have any idea about processing machines? lWhich are the processing machines. l Discussion may be concluded on the following aspects. l Types of computer l Analogue l Digital l Hybrid Expected outcome: l Notes on process machine 3 Input-Output Devices (2 Hrs) Suggested strategy: Group Discussion and Demonstration Take the students to your computer

lab and demonstrate them the various input-output devices. Pictures can be also used for giving concepts regarding this topic. Expected outcome: l Notes on input-output devices 4 Computer Terminology (4 Hrs) Suggested strategy: Group discussion A discussion may be initiated on basic terms of computers which the students have already learned in previous classes. The teacher may conveniently group the students and assign each group two or three basic terms such as Hardware, Software, CPU, RAM, ROM, Network etc. Ask them to prepare notes on terms and let the group leader to present it in the class. Lastly the teacher may consolidate the discussion. Expected outcome: l Notes on Basic terms 5 E-Commerce (7 Hrs) Suggested strategy: Interview, Discussion This term is a blend of electronics and commerce. The students are aware of the concepts of commerce

and have basic idea on internet and E-mail. This topic is aimed at imparting knowledge about the electronic commerce. The facilitator may arrange an IT expert and an interaction with him lead to acquire knowledge on E-commerce and its related matters. Interview Schedule T h e q u e s t i o n s ma y i n c l u d e t h e following :l What are the activities involved in E-Commerce? l What are the different E-Commerce models? l What are the resources required for introducing E-Commerce? l What are the security measures83 Unit 8 Application of Computers related with E-commerce? Alternatively, arrange a demonstration on the operation of Ecommerce, using available IT facilities at the school. The students may also be advised to visit an Internet Cafe to get first hand information on e-commerce to apply the acquired knowledge.

Expected outcome: l Report on E-Commerce Assignment Visi t an internet cafe, observe the activities involved in E-commerce and prepare report on the same. CE Possibilities l Class test l AssignmentObjectives Conc ept s / Ideas Process skills Activity Materials Evaluat ion Teachers Sourcebook VHSE General Insurance 84 l To get an idea about data processing systems l To get a knowledge about data processing machines l To get an idea about hardware, software, CPU and memory units l To get an idea about virus infection, antivirus and software. l To get the concept of E-commerce and to analyse its importance in the modern age. Meaning of data processing, ADP, IDP,

EDP Meaning of input and output devices, types of computer systems. Meaning of hardware, software, CPU, LAN, WAN, Laptop Meaning of virus and antivirus Meaning of E-commerce Comparison, observation, Classification Comparison, analysis, Classification Comparison, analysis, Classification Comparison, observation, analysis Analysis, observation General discussion General discussion Group discussion General discussion Interview, discussion Reading materials, Newspaper cutting Reference books &

News paper cutting Reference books & journals Reference books and Journals, Newspaper cuttings Internet facilities, paper cuttings, periodicals Chart, notes prepared, acquired Concepts Chart, notes prepared, acquired Concepts Chart, notes prepared, acquired Concepts Notes prepared, acquired Concepts Preparation of notes, acquired Concepts Report on debate UNIT ANALYSIS 8 - COMPUTER85 Sample Questions SAMPLE QUESTIONS

IV 1 Asok is the brother of Geetha. Asok decided to insure Geethas car and filled up the proposal form and has given to the insurance company. The insurance co. rejected the proposal. a Give reason? b Enlist the features of insurable risk. 2 Roy runs a hotel. Can you identify various risks faced by Roy in running the hotel. How can these risks be covered? 3 Mahesh insured his house for Rs.5,00,000/- and remitted a premium of Rs.1,000. The house was completely destroyed by flood during Monsoon. The insurance company paid Rs.5,00,000 as compensation to Mahesh. How did the insurance company pay Rs.5,00,000 by receiving a premium of Rs.1000? Briefly explain. 4 Arun owns two cars, one is Maruthi and another an ambassador. He proposed to sell his car for Rs.2,00,000 and Baiju accepted it. Baiju paid Rs.2,00,000 for Maruthi car. But Arun proposed to sell his ambassador car. Comment on the validity of the contract. 5 Jayan purchased a second hand car from James for Rs.1,50,000. The car was stolen by James. Jayan proposed to insure his car with United India Insurance Company but the insurance company rejected the proposal. Why? 6 Ananthu aged 15 years made an agreement to sell his property worth Rs.50,000 to Asokan. Comment the validity of the contract. 7 Janardhanan insured his cow for Rs.10,000. Accidentally the cow was grasing the neighbour s f ield where pest icide was appl ied, and the cow died. Janardhanan received Rs.10,000 from the neighbour as compensation. He claimed the compensation from the insurance company. Is it possible? Explain.

8 Sajith, a heart patient took a life insurance policy for Rs.2,00,000. After six months he died due to heart attack. The company refused to pay the claim. Why? 9 Ramanujam having a personal accident policy of Rs.1,00,000; rushed to the hospital due to heart attack, met with an accident on the way and he died. a) Identify proximate cause and remote caused. b) Is the insurance company liable to pay the compensation? 10 Gopalan wants to insure his house. As a student of General Insurance, what advice will you give to take insurance policy. 11 On 3rd September 2003 Meenakshi took Television Insurance for Rs.25,000. On 3rd September 2004. TV destroyed due to lightning. She lodged the86 Teachers Sourcebook VHSE General Insurance claim with the insurance company but the insurance company denied the claim. Why? 12 United India Insurance company accepted an insurance policy for Rs.1 crores from Biju. United India Insured the same subject matter with GIC of India for Rs.25,00,000. a) What is this process called? b) Why it is needed? 13 Nazeer remits life insurance premium in the nearest post office. Is it possible, if your answer is yes what the policy called? 14 As a student of insurance Mr. Baby, your neighbour request advice from you that, he wanted to be acted as an insurance agent. Narrate the eligibility for an agent. 15 Sanjay and Sooraj are friends. Sanjay took a loan of Rs.75,000/- from Sooraj. Here Sooraj wishes to insure the life of Sanjay and he approaches the insurance company.

a) To what extent is it possible. b) Give reasons. 16 Rajendran, trustee of the Attukal Trust proposed to insure the elephant of the temple for Rs.5,00,000. Do you think that the company will accept the proposal. If not why? 17 XYZ is a partnership firm. Syam, Sundar, Sunil are the members of the firm. Syam went to the insurance office and insure the life of other partners. React to this situation? 18 Soman was an international trader. He insured his goods on 1st April 2004 for Rs.2,00,000. On 15th April he sold the goods to Sundar of London. On 21st May fire contracted and the entire goods was destroyed. Soman claim compensation. Why? Discuss. 19 Aruna is daughter of Suresh and Raji. She proposed to insure the life of her parents. Do you think that the insurance company will accept the proposal? Give reasons to your answer. 20 Manohar wishes to insure his l i fe and furni ture of his business for Rs.5,00,000. What details he should give to the insurer in case of life insurance and insurance of business. 21 Motor policy covers a loss on account of damage by accidental means. But denies to cover the loss of insured on account repair and renewal. Why? 22 Abhilash owns a motor bike which was insured for Rs.35,000/- while driving he was fined Rs.500/- for over speed by authorities he claimed the amount with insurer and insurer refused. Give reasons. 23 Renu insured her stock worth Rs.5,00,000/- for Rs.4,00,000. She suffered a loss of Rs.50,000 on fire. The insurer settled the claim for Rs.40,000. Justify. 24 New India Assurance Company has a total acceptance of Rs.460 crores during the year. It re-insures with GIC only for 92 crores. What happends to the

reamining portion?87 Sample Questions 25 Bindhu lost her ornaments worth Rs.25,000/- by burglary. She informed the police immediately but report of loss to the insurer is made only after one month. Can you agree with this, if you are an insurer. 26 Suku reports a loss of Rs.10,000 to his car by an accident, the surveyor is on doubt that some of the damages are made deliberately by Suku. Insurer authorised a repairer to get the vehicle repaired. Why cash is not paid by the insurance company. 27 X insures his property for a value of Rs.10 lakhs. After a few days a fire was contracted and suffered a loss of Rs. 9 lakhs. a) What is the amount of compensation payable by the insurance company. b) if the market value of the damaged property is 8 lakhs. What will be the amount payable by the insurance company. c) if the insuranec company paid Rs.10 lakhs. What will be the effect. 28 Manu insured his bus worth Rs.10,00,000/- After a few days an accident was occured and suffered a loss of Rs.5,00,000/- and insurance company admitted the claim in full. Insurance company recovered the damaged parts of the bus. Comment on this. 29 Vaman insured his proper ty wi th New India Assurance Company for Rs.1,50,000 and also insures the same property with United India Insurance Company for Rs.2,00,000. He suffered a loss of Rs.1,00,000 New India Assurance Company paid the full amount and claimed Rs.50,000 from United India. Comment. 30 The insured must bear a legal relationship to the subject matter whereby he stands to benefit by the safety of property, right or interest and stands to lose by any loss, damage, injury or creation of liability. Elucidate the doctrine

behind this.