Associateship Examination Syllabus

Subject 21 - Information Technology

Introduction to Information Technology, Data Processing IT related applications in Insurance Industry.

Evolution of computer - generation of computer, Number system -binary ,arithmetic concept of a computer - Central Processor, Storage (memory units), arithmetic and logic unit, control unit, input and output unit.

Introduction to Microprocessor based PC-computers (PC-family).

Data Storage Devices.

Input -Output Devices Tapes (Streamer tapes and cartridge tapes ), disks (floppy disks, hard disks), CD-ROM, Recording structures on magnetic media.

Input devices, Output devices.

File Concepts

Flow Charts-different types of flow charts - some simple examples of flow charting techniques.

Introduction to SSAD (Structured System Analysis and Design).

Introduction to computer Hardware

Types of Computers

• Generations of computers

• Processing Unit

• Input/output devices

• Storage

Introduction to computer software

• Operating system of computers

• Application packages

Financial application software

• Payroll

• Insurance software etc.

General purpose standard software packages

• Word Processing

• Database Management

• Spreadsheet

• Computer languages

• Office Automation packages : Word Processors (WP), Spread sheets (SS), databases and desk top publishing (DTP)

Computerisation in Insurance Industry-operating and Controlling units-Management issues.

Glossary: The different constituents of an information technology department and their functions-system analysis, programming, operations, systems administration and network administration.

Subject 22 - Life Assurance Underwriting

Need for and purpose of selection - Underwriting policy in relation to the objectives of an Insurer.

Factors affecting rates of mortality - family history, personal history, build/present health, occupation and environments- Moral hazard - Financial underwriting-Female lives - concept of human life value - Capital fund need analysis.

Main sources of information for the insurer to determine the various factors affecting rates of mortality, Medico-actuarial investigations, insurance medicine.

Concept of extra-mortality-incidence of extra risk.

Methods of providing for extra-mortality - Extra premiums, lien, exclusion of specific risks by clauses.

Methods of underwriting - rating up age - Numeric rating method etc.

Sources of underwriting data- Proposal, Personal Statement, Medical Report - Special examination and tests - Inspection Reports by Agents and Field Staff - Medical Organisation.

Non-Medical underwriting-Revival underwriting-Group underwriting.

Occupational hazards - Army, Navy and Aviation personnel, Professional Athletes, Boxers, Wrestlers, Mountain Guides, Gymnasts, Divers etc.

Well-known impairments - Their effect on longevity - Analysis of such effect according to different plans of assurance - Special medical tests - Their utility for underwriting.

Miscellaneous problems -Reconsideration of extra charges - Double Accident & Disability benefits.

Keyman Insurance

Partnership Insurance:

Subject 23- Application of Life Assurance

Growth of Life Insurance in India

Basic Principles of Life Insurance - Co-operation-Large Numbers-Equality of risks-Foundation of Underwriting Practice-Premium Concept-Insurable Interest-Legal Aspects-Prior Investigation-Transparency & Disclosures-Cooling off period.

Functions of Life Insurance-Total Personal Financial Planning-Risk Management & Life Insurance as its basics-Economic-basis of Life Insurance-for individuals-for family-for business-for tax planning.

Life Insurance Products-Elements of Life Insurance Pricing-Basic Plans of Life Insurance-Emergence & Nature of New Products in advanced countries-Flexible Premium Plans-Universal Life Policy-Special Types of Whole Life Policies-Family Protection Policies.

Business Uses of Life Insurance-Key Man Protection-Business Protection (Partnership Insurance) - Employer Financed Policies on the Life of Employee - Salary Savings Scheme : Uses, administration & problems -window on the world - Funding Buy-sell Agreements with Life Insurance - Enhancement of Credit Employee compensation Plans- Industrial Life Insurance.

Group Life Insurance - Group vs Individual - Basic Features - eligibility, size of group; benefits available, financing mode -Group Selection philosophy & process, Experience rating, Reserves.

Group coverage offered elsewhere-Group Seminar Income Benefit Association - Servicemen's Group Life Insurance - Estate Employee's Life Insurance - Group Disability Income Plans.

Pensions and Group Superannuation - Financial gerontology: Economic Problems of Aging. Historical Evolution of Pension Plan & Government & Other Private Pension Schemes Legal Provisions.

Social Security : Government's Role & Contribution of LIC Of India - Economic & Social Security - Government measures for social security. Health Schemes, Poverty alleviation measures. LIC's Contribution : LALGI Scheme, IRDP Scheme, Other Schemes - Growth of Social Security Concept & Practices in Advanced Countries.

SUBJECT 24 - LEGAL ASPECTS OF LIFE ASSURANCE:

Definition and Sources of Law

Administration of Justice in India - Powers of Supreme Court and other courts and tribunals.

Life Insurance Contracts - Basis of Contract - Representation and Warranties - Duty of Disclosure -Section 45 of the Insurance Act 1938 - Fraud - Indisputability of Life Policies - Case Law on the subject.

Wagering Contracts - Modification of the Principle of Indemnity in Life Insurance - Human Life Value Concept - Key-man Insurance-Presumption of Insurable Interest-Case Laws.

Group Life Policies-Contracting Parties-Annuities-Reinsurance-Legal Implications.

Assignment of Policies under Section 38 of the Insurance Act 1938 - Nomination under Section 39 of the Insurance Act 1938-Policies under Trust-Section 6 of the MWP Act-Loss of Policies.

Actionable Claim-Tenancy-Tenancy in Common Mortgage of Life Policies-Provision of Indian Stamp Act.

Different Kinds of Proofs of death-Various forms of Evidence of Title-Testate and Intestate Succession-Presumption of Death-Indemnity Guarantee-Interpleades Suit-Garnisher-Attachments and Prohibitory Orders-Provisions of the Limitation Act as applicable to Insurance Contracts.

Agency Contract - Licence to act as Insurance Agent - Authority of a life Insurance Agent - Rights and Responsibilities - Agents Compensation and hereditary Commission - Termination of Agency - Nomination facility.

Exchange Control Regulation - Collection of Premiums and Claim Procedure of Policies issued to NRIs.

Provisions of Insurance Act as regards investment of Life Fund - Recommendations of the Committee in this regard.

Consumers Protection Act 1986 - Its implications to Life Insurance Industry in India - The U.K. practice of self Regulation Organisation - Constitution of IRA in India - LAUTRO in U.K.

Life Insurance Legislation Abroad - Insurance Companies Act 1982 and Financial Service Act 1986 - both of U.K. - The Life Insurance Law in the European Community - Life Insurance Laws in U.S.A.

SUBJECT 25 - LIFE ASSURANCE MANAGEMENT:

Principles of organisation - Different structures.

• Office procedures

• Handling grievances.

• Consumer Protection Act

Office Management - Records - Work simplification - forms control.

SUBJECT 26 - LIFE ASSURANCE FINANCE :

Basic of Accounting Systems.

• Life Insurance Accounting - Legislation - Procedures.

• Investments.

Balance Sheet - Revenue Account - Ratio's and Analysis - Trends.

Controls - Audit - Budget

Accounting standards - New concepts - Taxation.

SUBJECT 51 - FIRE HAZARDS OF SPECIFIC INDUSTRIES :

The processes, fire hazards, loss prevention measures and special features relating to and insurance requirements and tariffing of the following industries.

• Cotton ginning and pressing factories and godowns.

• Textile Industry

• Tea Industry

• Rubber Industry

• Paper Industry

• Chemical Industry

• Solvent extraction plants

• Hydro-Carbon processing Industries

• Engineering Industries

• Jute Industries

SUBJECT 52 - GENERAL FIRE HAZARDS :

Originating and contributory causes of fire hazards.

• Fire load - Fire resistance - Fire grading of structures - Hazards arising from construction.

• Hazards arising out of exposure and height

• Hazards of air-conditioning and ventilation systems. Air moving equipments, Refuse handling systems and such other services.

• Hazards of boilers and furnaces.

• Industrial furnaces/ovens - Heat transfer and fluid power systems- Internal combustion engines

• Nature of combustion, explosion and implosion.

• Inorganic and organic chemicals and their hazards

• Industrial processes - Night work

• Hazards of electrical equipment - Power transmission

Fire and Explosion Prevention

Nature and modes of generation of electricity - Flow and effect of electric current - Direct and alternative current - Use of electricity and fire hazards - electro chemistry - Electrolysis.

Equipments for generating, receiving, controlling, transmitting, distributing and control of electricity. Their construction, operation and hazards - Static electric prevention of electric hazards.

Assessments and prevention of fire hazards of substances.

SUBJECT 54 - FIRE INSURANCE UNDERWRITING :

• Application of Basic Principles

• Coverage under various Fire Policies - Special Perils, Exclusions, Policy conditions and clauses.

• Documents - Proposal Form - Risk Inspection Report - Cover Note - Policy - R. Notice

• Tariff Rules and Regulations, Rating.

• Building Regulations, Electrical Regulations - Building Regulations - F.E.A. Regulations - Special Rating Scheme - Warranties.

• Godowns and warehouses, highrise buildings, Material in the open, Manufacturing risks.

• Special policies - Reinstatement value policies - Floating policies - Declaration policies - Buildings construction - Pipelines outside the compound of industrial complex - Petrochemicals.

• Fire Loss Prevention - PML Fixation - Retentions and Reinsurance methods - New developments.

SUBJECT 55 - CONSEQUENTIAL LOSS (FIRE) INSURANCE:

History evolution and scope - Effect of interruption - Conditions and exclusions.

• Underwriting - Rating - Forms

• Determination of loss

• Extensions and additional perils.

SUBJECT 56 - FIRE INSURANCE CLAIMS:

The law relating to fire insurance contracts - India contract Act, Common Law - Principles of utmost good faith, Insurable interest-indemnity, subrogation and contribution.

Coverage under policies, A/B/C - Conditions and Warranties.

Claims under special policies, special perils extensions and other extensions of the policy.

What constitutes a loss ?

• Doctrine of proximate cause - Onus of proof - Right and duties of parties.

• Ascertainment of amount of loss payable

• Average and escalation clause

• Salvage

Appointment of loss under double insurance and concurrent and non-concurrent policies.

Office procedure relating to claims - functions and duties of surveyors - Process of loss surveying and loss assessment - Final Survey report - Miscellaneous legal aspect - Waiver - Stopper - Without prejudice - Ex-gratia payments - Payments by mistake - Payments to persons other than the insured - assignment of claim proceeds -rules for construction of policies, ejusdem genesis rule

SUBJECT 57 - FIRE & CONSEQUENTIAL LOSS INSURANCE :

Insurable property - Application of Basic Principles

Coverage under various fire policies - special perils

• Fire Tariff - Rating - Underwriting - Risk inspection - Fire Hazards and fire prevention.

Special policies:

• Fire documents - Cover note - Policy - Endorsements claims under fire policies- Legal and Procedural aspects

• The basic loss of profits policy - Sum insured and indemnity period - Rating - Extensions of the policy - Claims assessment and procedure.

• Reinsurance.

SUBJECT 61 - CARGO LOSS PREVENTION:

Types and causes for marine cargo loss. Role of Insurers in cargo loss prevention. Activities and role of L.P.A. (Loss Prevention Association) and IUMI (International Union of Marine Insurers).

Packing and Packaging: Progress made in other countries of the world. Various (types and methods of packing, Role of Indian Institute of Packaging.

Storage of cargo : Factors affecting safety of Cargo in storage. Staking methods for bagged cargo, cases, cartons, bales, barrels, drums, C.I. Sheets, pipes and bars, etc. Special precautions for storage of hazardous cargo.

Material handling: Safe Handling practices for various types of packages and cargo. Road Transportation of hazardous substances - Motor Vehicles Act and Rules - Loading and unloading operations and suitability of cargo handling gear, safe working practices and systems.

Common causes of loss/damage to cargo during inland transit by rail/road and minimisation of loses.

Storage on board Ships: Types of damage cargo can suffer from improper stowage and how this can be avoided through correct preparation of cargo holds to receives various types of cargo.

Unitisation and containersation : Major types of losses to which unitised / container cargo is prone to General Stowage rules for safe carriage of unitised cargo - containerisation of dangerous cargo - JMDG Code - Multi Modal transportation.

Theft/Pilferage : How it arises in respect of various types of packing and the precautionary measures recommended to minimise/prevent this type of loss.

Ports and customs procedures.

SUBJECT 62 - COMMERCIAL GEOGRAPHY :

Scope and relevance to marine insurance.

International trade and factors governing supply and demand.

Study of basic geographical concepts, like the Solar System, Latitudes and Longitudes, sea depth distribution, ocean currents, tides, coral reefs and islands, etc. Earthquakes and volcanic eruptions and areas prone to these catastrophes.

Institutes Warranties and their application.

A detailed study of the main sea routes of the world, including Suez and Panama Canal Routes and geographical and commercial factors involved.

Rail and Road Transportation - Coastal trade - Air transport.

The attributes of ports, harbours and hinterlands. Principal ports of the World including a study of conditions in each such port, Geographical location, extent of commercial importance and facilities available for handling and storing cargo etc.

Major principal commodities, conditions required for their growth and production and their traffic or movement in world trade. Commodities involved are cereals, grain and pulses, fruits, vegetables oils, beverages, spices, meat and dairy products, metals, fuel, fertilizers, etc.

A study of maritime hazards and the locations where they occur.

SUBJECT 63 - MARINE CLAUSES :

S.G. Form and the New MAR form of the Marine Policy endorsements Institute of London Underwriters - Technical and Clauses Committee of I.L.U.

Fishing Vessels Clauses.

Institute clauses for Hull, freight, and cargo used in the international market - Non-Institute clauses - Institute Standard conditions for Cargo Contracts Clauses used in India - Sailing Vessels clause - Inland Vessels clause - Trading Warranties. Trade Clauses . Duty and increased value insurance clause - Seller's contingency clause - Rejection Insurance Clause.

Duty Exemption Scheme - Marine policy form.

Special Declaration Policy and Annual Policy for inland Transit - Inland Rail/ Road Transit clause - F.O.B. Shipments - Registered Postal Sendings - Clause for Diamonds and Precious stones exports.

SUBJECT 65 - MARINE UNDERWRITING:

• Marine insurance market in India and the U.K. - Marine Insurance associations and marine publications.

• International and domestic trade

• Markets, parties to a contract and role of intermediaries.

• Contracts of sale - Incoterms.

• Finance for trade (Bills of exchange, documentary credits, etc.)

• Underwriting documents - Rules of interpretation - Payment of premium - Stamp duties - Exchange control regulations regarding payment of premiums

Risks and rating factors in Cargo Underwriting.

Types of commodities, methods of packing, stowage and their susceptibility to loss or damage - extraneous risks and their effects on cargo.

Containers, pallets and multi-modal transport systems and the particular characteristics of theses systems.

Common types of vessels including their operating and risk characteristics.

Types of policies to cover shipowner's insurable interests.

• Salient features of Institute Time Clauses Hulls (1.10.83).

• Hull underwriting and rating

• P & I cover in general

Types of maritime frauds and precautionary measures for their prevention.

• Abbreviations- Shipping, insurance and commercial terms.

• New developments in underwriting in the international market.

SUBJECT 66 - MARINE INSURANCE CLAIMS :

A through understanding of the Marine Insurance Act, 1963 and Rules for Construction of Policy and other statutes having a bearing on claims such as The Indian Carriage of Goods by Sea Act, 1925, The Indian Railways Act, 1890 (as amended), Indian carriage by Air Act, Merchant Shipping Act, Multi-modal Transportation Act, etc.,

Types of Losses and the measure of indemnity applicable to them presentation, adjustment and settlement of claims in respect of

• Cargo

• Hulls

• Freight

• Collision liabilities

• General Average

• Salvage and Salvage charges

• Particular charges including Sue and Labour

Purpose, scope, application and effect on claims settlements of salient features of the following.

• York-Antwerp Rules, 1974 and amendments

• Rules of Practice of the Association of Average adjusters.

• Exchange Control Regulations regarding payment of claims.

Effect on claims settlements of

• abandonment

• Subrogation

• Recoveries

Cargo clearance procedures and documentation.

Liabilities and immunities of ocean, land and air carriers under respective statutes.

Role and functions of specialists and organisations including claims settling agents, average adjusters, hull and cargo surveyors, salvage association.

SUBJECT 67 - MARINE INSURANCE:

Scope and Markets exchange control regulations - inconterms.

• Fundamental principles - Underwriting and Rating - Nature of Vessel, Cargo, Packing, Coverages, Clauses, Warranties.

• Claim - Particular and General Average - Charges - Salvage

• Surveys - Recoveries

• Hull Insurance - Valuation and Rating - Clauses - Freight - Port risks - Tariffs.

• Cargo Loss control - Prevention - Reinsurance.

SUBJECT 71 - AGRICULTURAL INSURANCE :

Agricultural situation in India - Types of agricultural insurance - Organisation transacting agricultural insurance.

History of crop insurance in India - Crop insurance underwriting and settlement of claims - Hail insurance - Problems of crop insurance - Crop insurance in other countries.

Cattle wealth in Indian rural economy - Types of cattle and buffaloes - breeds and their characteristics - common diseases - Veterinary infrastructure - Valuation of cattle - Premium rate structure - Methods of identification - Cattle insurance policy - Loss assessment and settlement of claims - Loss minimisation.

Poultry insurance - Insurance of pigs, sheep and goats, camels, etc.-other miscellaneous agricultural insurance -janata Personal Accident, Gramin Accident, Agricultural pump sets.

SUBJECT 72 - MOTOR INSURANCE:

History of Motor insurance - Application of basic principles of insurance - Types of vehicles - Types of policies - The Motor Vehicles Act, 1939, as amended - important legal decisions.

Scope of cover under different types of policies - Tariff Rules and Regulations - Proposal forms - Underwriting - Rating - Extras and discounts - Cover notes/Certificates of insurance - Policy forms-endorsements-Renewals - Claims processing and settlement - MACT - Lok Adalat/Lok Nyayalaya - Jaid Rahat Yojana.

Motor Claims - Forms - Check lists - Minimisation programme

SUBJECT 73 - PERSONAL ACCIDENT, SICKNESS AND MISCELLANEOUS INSURANCES:

• Personal Accident Insurance - Basic Principles - Coverage and Benefits - Provisions and Exclusions - Rating - Extensions - Discounts- Claims procedures - Group Policies.

• Mediclaim - Benefits - Exclusions

• Discounts - Conditions - Group - Claims - Cancer policy - Deferred mediclaim.

• Overseas medical - Benefits and conditions - Exclusions - Overseas practice.

• Anatomy and Physiology

• Types - Burglary -Scope-Exclusions-Extensions-Underwriting-Survey-Claims

• Baggage - Underwriting- Claims.

• Money in transit - Exclusions - Conditions - Extensions - underwriting.

• Fidelity guarantee - Coverage - Types - Conditions - Underwriting - Investigation.

• Court Bonds - Liquidator and Receivership Bonds - Government bonds.

• Banker's Blanket and Jewellers Block policies - Exclusions - conditions-rating claims.

• Other miscellaneous policies - Pedal Cycle -Plate glass -Special contingency -Missing documents-Neon sign-Blood stock (Horse) - Pet dog - Sports- Television - Shopkeepers - House holders - Multi peril for LPG (Gas) dealers - Doctors package - Office protection - Adhikari Suraksha Kavach -Suhana Safar.

SUBJECT 74 - LIABILITY INSURANCE:

(Excluding Liability Insurance covers, issued in Motor Insurance, Engineering Insurance, Marine Hull Insurance & Aviation Insurance).

Application of basic principles of insurance - Legal aspects - Law of torts - Statutory liabilities - Compulsory Liability Insurance Act - National Environment Tribunal Act - Contractual liabilities - Historical background.

Cover under Public liability policies for non industrial risks and industrial risks and under products liability policy.

Extensions and endorsements - Proposal forms and Risk Assessment forms, methods of rating - Rules of Market Agreement.

Compulsory public liability insurance - Provisions of the Public liability Insurance Act, 1991 and the Rules framed thereunder.

Proposal form and the methods of rating.

• Professional indemnities Coverage, methods of rating and proposal form.

• Directors and Officers Liability insurance.

• Workmen's Compensation Act, 1923 (as amended)

• Employer's Liability-Insurance-Coverage, methods of rating proposal form-Tariff Rules.

• Claims processing and reinsurance.

SUBJECT 77 - ENGINEERING INSURANCE

Scope of Engineering insurance - Origin and development of engineering insurance - Application of basic principles.

Types of plant and associated hazards - Engines, Refrigerating plant and general machinery - Lifts, cranes, material handling plant and equipment - Boilers, pressure plant and electrical machinery.

Contractors All Risks - Scope of cover, rating underwriting and claims processing under different engineering policies - Erection All Risks - Marine-cum Erection.

Contractor's Plant and Machinery - Boiler and Pressure Plant-Machinery Breakdown-Loss of Profits following machinery breakdown/boiler explosion-Advance Loss of Profits-Deterioration of stock in Cold Storage- Electronic equipment-Miscellaneous engineering policies - Tariff provisions.

Surveys and Risk Inspection -Statutory regulations.

Loss Prevention and Minimisation - Reinsurance.

SUBJECT 78 - MISCELLANEOUS INSURANCE :

Personal Accident Insurance - Basic Principles - Coverage and Benefits - Provisions and Exclusions - Rating-Extensions - Discounts- Claims procedures -Group policies.

Mediclaim - Benefits - Exclusions - Discounts - Conditions - Group Claim - Cancer policy- Deferred mediclaim.

Overseas medical - Benefits and conditions - Exclusions - Overseas practice.

Burglary - Scope - Types - Exclusions - Extensions - Underwriting - Survey - Claims.

Baggage - Underwriting - Claims

Money in transit - Exclusions - Conditions - Extensions - Underwriting.

Fidelity guarantee - Coverage - Types - Conditions - Underwriting - Investigation.

Court Bonds - Liquidator and Receivership Bonds - Government Bonds.

Banker's Blanket and jewellers' Block policies - Exclusions - Conditions - Rating - Claims

Other miscellaneous policies - Pedal Cycle - Plate glass - Special contingency - Missing documents - Neon sign - Blood stock (Horse) -Pet dog - sports - Television-shopkeepers-Householders-Multi peril for LPG (Gas) dealers -Doctors package -Office protection- Adhikari Suraksha Kavach-Suhana Safar.

Rural Insurances - Cattle -Sheep - Poultry - Shrimps - Prawns - Other Livestock - Seller norms, Horticulture, Lift irrigation, Salt works, Farmers package, Personal Accident Social Security, Hut Coverage, Exclusions and conditions - Claims procedures - Market agreements.

SUBJECT 79 - LIABILITY & ENGINEERING INSURANCE :

Scope of liability insurance - Application of basic principles - Onus of proof - Damages.

Legal aspects - Common Law and statutory liabilities - compulsory public liability - Insurance Act - National Environment Tribunal Act - Workmen's Compensation Act.

Scope of cover, rating underwriting and claims processing - Policy Public Liability (industrial risks) - Products liability - Director's and Officers Liability.

Workmen's compensation policy

Reinsurance in engineering and liability insurance.

Scope of engineering insurance - application of basic principles.

Scope of cover, rating underwriting and claims processing under various engineering policies - Erection all risks - Marine-cum Erection - Contractors All Risks - Contractors plant and machinery - Boiler and pressure plant - machinery breakdown - Loss of profits - Cold storages -Electronic equipment - Surveys and Risk inspection.

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