BANKING & INSURANCE (BCA 503) SYLLABUS

Total- 52 Hours

UNIT I 12 Hours

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

UNIT II 12 Hours

Commercial Banks- Functions, Structure of Commercial banks in India- Source of funds, Investment norms-

factors determining liquidity of banks- Asset Structure of Commercial banks- Profitability of banks

UNIT III 08 Hours

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

UNIT IV 12 Hours

Essential of a contract- Principles applicable to insurance business- utmost good faith- insurable interest- indemnity- subrogation and contribution- proximate cause- financial principles- premium funds- investments- reserves- surplus- valuation of funds. Introduction of risk- Risk appraisal- Risk selection underwriting- Reinsurance- Concepts and methods- Facultative, treaty reinsurance and various methods

UNIT V 12 Hours

Growth and development of insurance- Present day Regulatory environment Insurance act, 1938- IRDA act, 1999- Present Market Environment- Intermediaries- Office organization- Departments- Files- Correspondence- New technology, Controls

REFERENCES:-

1. G. Kotreswar, Risk Management Insurance & Derivatives- Himalaya Publishing House2. T.T. Seth, Insurance Principles & Practice- S. Chand, New Delhi3. Course- IC 01,IC 02, IC 11, IC12, IC25 of Insurance Institute of India, Mumbai4. L.M.Sbole – Financial Institutions and Markets, TMH5. K.C. Shekar & Laksamy Sheler, Banking Theory & Practice, Vikas Publication (2001)

LESSON PLANSUBJECT -BANKING & INSURANCE SUBJECT CODE - BCA 503 TOTAL NO. OF HOURS- 36 HOURS/ WEEK- 4TOTAL MARKS- 100 I.A MARKS- GRADE

CLASS NO.

MODULE NO. SUBJECT TOPIC TO BE COVERED

1 1 Introduction about Banking & Insurance

2 Financial Institution, Financial assets, Financial Market

3 Chart for Financial System

4 Primary Market, Secondary Market, Money Market

5 Capital Market, Difference between Capital & Money Market

6Instruments of Money Market- Treasury Bills (T-Bills), Commercial Papers (CPs)

7 Certificate of Deposits, Call Money Market

8 Repurchase Agreement (Repo), Listing and economic significance

9 2 Commercial banks Introduction

10 Functions of commercial banks

11 Structure of commercial banks in India

12 Source of funds

13 Investment norms & factors determining liquidity of banks

14 Asset structure of commercial banks

15 Profitability of banks

16 Profitability of commercial banks

17 3 The concept of Risk & Insurance

18 Classification of Insurance- life insurance

19Types of general insurance- insurance of property, pecuniary interest

20 Liability & persons

21 Types of policies fire, marine, motor

22 Engineering, aviation, agriculture, liability and person

23 4 Essentials of a contract

24Principles applicable to insurance business utmost good faith (insurance) and insurable interest

25 Indemnity – subrogation & Contribution, proximate causes

26 Financial principles, premium funds

27 Investments – reserves- surplus valuation of funds

28 Introduction to risk, risk appraisal

29 Risk selection. Underwriting, reinsurance

30Concepts and methods- factuative, treaty, reinsurance and various methods

31 5 Growth and development of Insurance

32 Present day regulatory environment insurance act

33 1938 IRDA act, 1999 present market environment

34 Intermediaries- office organization & departments

35 Files, correspondence, new technology, control

36 New technology & control

Syllabus for 1st Internal Test – Unit 1, Unit 2

For 2nd Internal Test – Unit 3, Unit 4, Unit 5

References Books for Banking & Insurance (BCA 503)

1. Ravindra Babu. S, Banking & Insurance, Skyward Publishers

2. Jagroop Singh, Banking & Insurance, Kalyani Publishers

3. M Y Khan, Indian Financial System, Tata McGraw Hill Publishers- 5th Editions

4. Meir Kohn, Financial Institutions & Markets, Tata McGraw Hill edition

5. K.C.Shekhar & Lekshmy Shekhar, Banking Theory & Practices, 20th Editions Vikas Publishing

QUESTION BANK

UNIT- 1

Short Answers- 2 marks

1. Define Financial System?2. Name the components of the financial system of any country?3. Mention the functions of the Financial Systems?4. What are Financial Markets5. Name the state owned insurance corporations in India6. Define ICICI7. What is a Money Market?8. Who are the participants of the Treasury Bills (t-bills) market?9. What is a call money market?10. Name a money market instrument, which enables collateralized short term borrowing and lending

through sale/purchase operations in debt instruments?11. What instruments are contained in the capital market?12. What is a primary market?13. What is book building process?14. Define a stock exchange?15. Define DEMATERIALISATION?16. What are the benefits of having a demat account?17. Who are the depositories?18. Name the two depositories in INDIA.19. Mention the difference between term deposit & certificate of deposit (CD)?

5 Marks Questions

1. What is a financial system? Discuss the components of the Financial system2. What are the characteristics and functions of the financial markets3. A financial system is a well-integrated system whose parts interact with each other comment4. Distinguish between money market & capital market5. Distinguish between primary market & secondary market6. State the functions of a foreign exchange market7. What is a capital market? What are its major constituents?8. What are the characteristics of the Financial system9. What are the characteristics of T-Bills10. Distinguish between repo & reverse repo11. Classify the financial intermediaries functioning in the Indian Financial System and bring out their

features12. “Treasury bills are important short-term source of finance for the government”- explain13. Write a short note on (i) Commercial papers (ii) Certificate of Deposit14. Describe the primary market in India15. Distinguish between the Primary & Secondary Markets16. What is listing? What are its advantages & Disadvantages17. What are the services provided by the stock exchanges? What are the distinctive features of stock

markets in India

Essay Questions: - 15 Marks

1. What is capital market? Discuss the objective and importance of capital market2. What are the functions of capital market? Outline the structure of Indian capital market3. What is a stock exchange? Discuss the shortcoming of Indian stock exchange. Suggest measures for

their improvements4. Distinguish clearly between capital market & money market5. What do you mean by ‘New Issue Market’? Examine in brief the growth of new issues market in

India.6. What do you meant by listing of securities? Which documents are to be filed with the stock exchange

for listing of securities?7. What is the procedure followed at the stock exchange for making purchases and sales?8. Discuss various capital market reforms that have been announced by the government during 1991 to

2002

UNIT – 2

Short Answers:-2 marks

1. Define a Bank?2. Mention the two broad functions of RBI?3. Why RBI is called Banker’s Bank and the lender of the last resort?4. How are Commercial banks classified?5. How do we classify the Indian Commercial banks?6. What are scheduled commercial banks?7. What are Unsecured loans8. What are Secured loan9. What are General Utility services10. What is NPAs11. Define e_banking?12. Mention the Sources of funds of commercial banks?13. What are the Primary functions of a bank?14. What is ATM?15. Define Particular Lien.16. Explain Pay-in-Slip books?17. Explain fixed deposits accounts?18. Explain current account?

5 Marks Questions

1. Mention the objectives of RBI?2. Mention the difference between Public sector and private sector banks3. Distinguish between Indian Banks & Foreign Banks4. What are the modes of short-term financial assistance of the commercial banks5. Mention the different methods of Granting Loans by Banks6. Explain the features of commercial banks7. What are NPAs8. Mention the Asset classification and categories of NPAs

9. What are the various factors affecting liquidity of the banks10. Explain the term (a) liquidity (b) Profitability of a commercial banks11. What are commercial banks? Explain their features12. Write the schematic representation of the structure of commercial banks in India13. Discuss the various sources of funds of a commercial bank14. Explain the various factors determining the liquidity of banks15. Write briefly on the profitability of commercial banks

Essay questions- 15 marks

1. Define commercial bank. Discuss the functions of a commercial banks2. Explain the role of the banks in economic development of a country3. Discuss the Rights of a commercial banks4. Briefly explain the obligation of a commercial banks5. “Commercial bank is foundation stone of modern commerce and industry”. Explain the statement6. Write notes on:- (1) Modern functions of bank (2) development functions of banks (3) obligations of

banks (4) Rights of a banks7. Explain different types of banks8. Define unit banking. What are its advantages & disadvantages?9. Explain branch banking. Discuss its advantages and limitations10. What do you mean by group banking? Explain its merits and demerits11. Discuss the characteristics of good banking system12. Explain the different types of accounts opened with a bank, <0%> which of the accounts is suitable for

a businessman and why?13. Discuss the procedure to open as current account in a bank.14. Discuss the different between fixed, current and saving accounts of a bank15. Discuss the advantages of a bank account. How a customer can close his/her account.16. Write a detailed note on present structure of commercial banking in India17. Explain the types of commercial banks in India18. What is meant by management of deposits? Explain the need of deposit management in commercial

banks19. Mention the features of deposit mobilisation schemes. What are the main qualities of new deposit

mobilisation schemes?20. Explain Bank Investment. Discuss the significance of Investment Management in commercial banks in

India?21. Define profitability. Discuss the measures of profitability of bank?

UNIT – 3

Short Answers:- 2 marks

1. Define pure risk2. What are diversifiable risks3. What is insurable interest4. What is principle of indemnity5. What is principle of Causa proxima6. Define Insurance7. What is underwriting process8. What is endowment insurance9. Define Liability Insurance10. What is fire insurance?11. Define health insurance?12. What is Hull “All Risks”.

5 Marks Questions

1. Differentiate between pure and speculative risks2. Differentiate between Diversifiable and Non-Diversifiable risks3. Mention the Risk Management techniques4. Briefly describe the role of Insurance in Economic growth5. Describe the concept of Insurable risk6. What are the characteristics of Insurance industry7. Write a short note on the benefits of Insurance8. Mention the factors affecting individuals demand for the Insurance9. Explain the factors affecting individuals demand for the Insurance10. Explain marine Hull Insurance11. Give two examples of health insurance12. Describe the various types of risks13. Describe the classification of Insurance14. Describe the various types of General Insurance15. Write the short note on (I) Fire Insurance (2) Marine Insurance16. Briefly describe the various general Insurance Products

Essay questions- 15 marks

1. Define “Risks”. What are the various methods of handling Risk?2. Are all risks insurable? Explain the features of Insurable Risk.3. Describe Various types of Risk4. Define Insurance. Explain its functions & Characteristics of insurance5. Explain the following terms (1) Insurer (2) Insured (3) Compensation (4) Risk (5) Contingency (6)

Peril6. Define Life Insurance. What are its main characteristics? Explain the procedure for taking a life

insurance policy?7. Define five insurance. Explain its various characteristics. Explain the procedure for purchasing a fire

insurance policy8. Explain the various social insurance schemes

9. Distinguish between life insurance & General insurance. Explain briefly the various type of life insurance policy in use in India

10. Discuss the procedure to take a life insurance policy. 11. “Life insurance provides both protections as well investment”. Explain12. Critically evaluate the growth of general insurance after nationalisation in India13. Discuss the non-life insurance procedures followed in India14. “Multi-Purpose policy is fulfilling almost all types of human needs”. Comment15. Describe the different types of Endowment and Term Policies16. Explain the rural insurance policies available with general Insurance Corporation in India?17. What are urban non-traditional insurance policies available with GIC?18. Discuss the various types of Marine insurance policies.

UNIT – 4

Short Answers:-2 Marks

1. What are the four requirements for an Insurance Contract2. What is the Principle of Utmost Good Faith?3. What is the Principle of Indemnity?4. What is Principle of subrogation5. Define Risk6. What is Risk Appraisal7. What are the Objectives of Investment Policy8. Define underwriting9. Define Underwriter10. Mention the two principles of Underwriting11. What are Underwriting Methods12. Who are Liability Underwriters13. What are Reinsurance14. What are the Objectives of Reinsurance15. What is treaty reinsurance16. What are Facultative reinsurance

5 Marks Questions

1. What are the four requirements for an Insurance Contract2. Mention the types of underwriters3. Describe principle of Principle of Utmost Good Faith4. Describe Reinsurance5. What are Underwriting Methods6. Explain the concept of risk and classification of risks7. Explain Risk Appraisal. Mention the various methods8. Explain the principles and purposes of Underwriting9. Explain the principles of Insurances10. Explain the various methods of Underwriting11. Explain the concept of Reinsurance

12. Explain the various types of Reinsurances

Essay questions- 15 marks

1. Discuss the following principles of an Insurance contract (a) insurable Interest (B) Proxima Cause (c) Doctrine of Subrogation

2. Explain the various principles of Insurance3. What is insurable interest and what is its importance in insurance4. Explain the principles of indemnity. Discuss its need and importance in insurance5. What do you understand by principle of contribution? Explain the pre-requisites for the application of

this doctrine6. What are the principle of proximate cause and Subrogation? Discuss their significance and main

features7. Define Underwriting of Risk. Explain the needs and importance of underwriting of risk8. Who can works as an underwriter9. Briefly explain the underwriting process10. Explain the characteristics & Methods & Advantages of Reinsurance.

UNIT – 5

Short Answers:- 2 Marks

1. What are the four Subsidiaries of Insurance Corporation of India (GIC)2. What is the main purpose of the Malhotra Committee3. What are the various Insurance Intermediaries4. Who are Third Party Administrators (TPA)5. Define IRDA6. What is the composition of the Authority under IRDA act7. What is objective of the Insurance Act, 19388. What is Data Warehousing9. What are Cat Models

5 Marks Questions

1. Mention the Subsidiaries of GIC2. What are the purposes of Malhotra Committee3. What are the Capital requirement and foreign participation according to IRDA4. Mention the various types of Insurance Intermediaries5. Explain the purpose of TPA and their roles6. Explain the composition authority of the Insurance company as per the IRDA act7. What are the Duties, Powers and Functions IRDA8. How does DSS helps in Insurance9. Mention the important provisions of the Insurance Act10. What are the Challenges of E-Insurance11. Briefly explain the various Insurance intermediaries and their functions12. Distinguish between, (a) Agents and Brokers (b) Agents and corporate Agents13. Explain the provisions of the IRDA act

14. Explain the various provisions of the Insurance Act15. Explain E-Insurance. Highlight on the advantages and its challenges16. Write a short note on the application of IT in the field of Insurance

Essay questions- 15 marks

1. What were the main defects of two original Insurance Act. What were the reasons for the replacement act of 1912

2. What are the salient features of Insurance act, 1938? Discuss the provisions relating to its application to non-life Insurance

3. Discuss the provisions of Insurance act, 1938 relating to registration, Renewal & Cancellation of registration of Insurance company

4. Discuss the provisions and restriction on payment of commission and Rebate to agent under Insurance act, 1938

5. What are the provisions relating to Licensing of Insurance agents under act of 19386. What restrictions are placed on investment by an insurance company under Insurance act, 19387. Discuss Duties and power of controller of Insurance under the Insurance act of 19388. Discuss the powers, duties and scope of IRDA9. Write notes on (a) Finance, accounts and Audit of IRDA (b) Powers of central Government in IRDA

functioning10. Define Insurance intermediaries. What are different types of insurance intermediaries?11. Define Insurance Broker. Discuss the functions of Insurance Broker12. Define Insurance Agent. What are the functions and duties of insurance agents13. Discuss the functions and duties of surveyors and loss assessors14. Briefly explain the organisational set-up of LIC15. Briefly discuss the functions of different departments at central office of corporation16. Explain the various function of divisional office of LIC17. What functions are performed by the branch offices of LIC18. Explain new means of technology used in insurance industry. What are the benefits of new technology