Insurance Services Management Notes
Subject Overview
Insurance Services Management is the second Banking & Insurance elective, covering how India's insurance sector actually operates — products, regulation, and the management concepts applied within it. You'll cover the basic principles of insurance and types of risk, life, health, and general/
Subject at a glance
4
Units
29
Topics
6
Credits
4
Infographics
Unit-wise Syllabus
4 units — open any unit for detailed topic-wise notes, diagrams and important exam questions
- Basic principles of insurance
- role and importance of insurance in society
- micro insurance
- types of insurance
- insurance documents and policy terms
- insurance agents
- risk and uncertainty
- classification and sources of risk
- risk management
- Utmost good faith
- Disclose all material facts
- Insurable interest
- You must suffer a loss from the event
- Indemnity
- Restore the loss, not profit from it
- Subrogation
- Insurer takes over rights against third parties
- Contribution
- Several insurers share a loss
Study guide
This unit covers the basic principles of insurance, its role in society, micro insurance, types of insurance, insurance documents and policy terms, insurance agents, risk and uncertainty and the classification, sources and management of risk. Learn the principles of insurance (utmost good faith, insurable interest, indemnity) with an example each.
- History and importance of life insurance
- products and claim types
- private sector companies
- health insurance determinants and intermediaries
- claim process and challenges
- general and commercial insurance
- distribution channels
Covers
Human life
Property, health, liability, motor
Term
Long term
Usually one year
Indemnity
Not a contract of indemnity
Contract of indemnity
Payout
Sum assured on death or maturity
Actual loss, up to the sum insured
Study guide
You study life insurance (history, importance, products and claim types), private sector companies, health insurance determinants and intermediaries, the claim process and challenges, general and commercial insurance and distribution channels. Compare life and general insurance in a table.
- Salient features
- duties
- powers and functions of the IRDA
- financial accounts and audit
- IRDA (Protection of Policy Holders Interest) Regulation 2002
- rationale for opening the insurance sector to private players
- credit and deposit insurance
- 1Intimate
Inform the insurer quickly
- 2Document
Claim form and proofs
- 3Survey
Assessor checks the loss
- 4Settle
Insurer approves and pays
Study guide
You study the IRDA (now IRDAI): its salient features, duties, powers and functions, its accounts and audit, the Protection of Policyholders' Interests Regulation 2002, the rationale for opening the sector to private players and credit and deposit insurance. Note that the regulator is now called IRDAI.
- Concept and importance of reinsurance
- tax benefits under life insurance policies
- marketing of insurance policies
- HR issues in the insurance sector
- financial management applications
- use of information technology in insurance
- 1Policyholder
Buys cover from an insurer
- 2Insurer
Keeps part of the risk
- 3Reinsurer
Takes the rest for a premium
- 4Large loss
Shared, so no single insurer is ruined
Study guide
The final unit covers reinsurance, tax benefits under life insurance, marketing of insurance policies, HR issues in the sector, financial management applications and information technology in insurance. Understand how reinsurance spreads risk among insurers.
Why Insurance Services Management Matters
Insurance is a large and growing employer, with roles in underwriting, claims, sales and actuarial support. The subject also supports financial planning and risk management careers and professional insurance exams.
How to Prepare for Insurance Services Management
- Learn the principles of insurance with one real example each.
- Compare types of life policy (term, endowment, whole life) in a table.
- Follow IRDAI updates for current regulations.
Insurance Services Management: Frequently Asked Questions
What is insurable interest?
Insurable interest means the policyholder would suffer a financial loss if the insured event occurred, and it is required for a valid insurance contract.
What does reinsurance mean?
Reinsurance is insurance bought by an insurance company from another insurer to share and reduce its own risk.