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1. Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
(Prefer mailing. Call in emergency )
ASSIGNMENT
DRIVE WINTER 2013
PROGRAM MBADS – (SEM 4/SEM 6) / MBAN2 / MBAFLEX – (SEM 4) /
PGDFMN – (SEM 2)
SUBJECT CODE & NAME MF0018 - INSURANCE AND RISK MANAGEMENT
SEMESTER 4
BK ID B1816
CREDITS 4
MARKS 60
Note: Answer all questions. Kindly note that answers for 10 marks questions should be
approximately of 400 words. Each question is followed by evaluation scheme.
Q.1 Risk is used to describe any situation involving an uncertainty about the outcome. What is the
meaning of risk management? Explain the Risk Management process and methods with a flow
chart.
Ans : Introduction of risk management :
Risk management is the identification, assessment, and prioritization of risks (defined in ISO 31000
as the effect of uncertainty on objectives, whether positive or negative) followed by coordinated and
economical application of resources to minimize, monitor, and control the probability and/or impact
of unfortunate events or to maximize the realization of opportunities. Risks can come from
uncertainty in financial markets, threats from project failures (at any phase in design, development,
production, or sustainment life-cycles), legal liabilities,
Q. 2 Insurance industry is highly regulated in all the countries. Explain on solvency margin and
methods of determining solvency margins. Write down the claim procedures in respect of a
general insurance policy.
Ans : Introduction of solvency margin:
The solvency margin is the amount of regulatory capital an insurance undertaking is obliged to hold
against unforeseen events. The solvency margin is a minimum excess on an insurer's assets over its

2. liabilities set by regulators. It can be regarded as similar to capital adequacy requirements for banks.
It is essentially a minimum level of the solvency ratio, but regulators usually use a slightly more
complex calculation.
Methods of determining solvency margins :
Q. 3 What do you understand by the concept of insurable interest? Write down about the
essentials, creation and application of insurable interest. How does a life insurance plan work and
write about the two key elements. Also write about riders.
Ans : Explanation on concept of insurable interest:
Insurable interest exists when an insured person derives a financial or other kind of benefit from the
continuous existence of the insured object (or in the context of living persons, their continued
survival). A person has an insurable interest in something when loss-of or damage-to that thing
would cause the person to suffer a financial loss or other kind of loss. Typically, insurable interest is
established by ownership, possession, or direct relationship. For example, people have insurable
interests in their own homes and vehicles, but not
Q.4 Liability insurance is classified into two categories. Explain on the types of liability policies and
explain on aviation insurance with all the three section of the policy.
Ans : Explanation on types of liability policies:
Public liability:
Industry and commerce are based on a range of processes and activities that have the potential to
affect third parties (members of the public, visitors, trespassers, sub-contractors, etc. who may be
physically injured or whose property may be damaged or both). It varies from state to state as to
whether either or both employer's liability insurance and public liability insurance have been made
compulsory by law. Regardless of compulsion, however, most organizations include public liability
insurance in their insurance portfolio even though the
Q. 5 When a policy has been issued, the risk for the danger insured against gets covered. Explain
on the evidence and claim notice. Also write about the Extent of liability
Ans : Explanation on the evidence and claim notice:
This Evidence of Insurance is issued under the current Master Policy effected with PTI Insurance
Company Limited (the „Insurer’) and IAPA (Global) Ltd. for members of the International Airline
Passengers Association („IAPA‟). This document is issued to notify you that your name has been
added as an Insured with respect to the insurance under

3. Q. 6 Insurance Ombudsman was created for quick disposal of the grievances of the insured
customers. Write the complete information on Insurance Ombudsman.
Ans : The Insurance Ombudsman scheme was created by Government of India for individual
policyholders to have their complaints settled out of the courts system in a cost-effective, efficient
and impartial way.
Appointment of Insurance Ombudsman
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
(Prefer mailing. Call in emergency )