Fellowship Examination Syllabus

SUBJECT 81 - MATHEMATICAL BASIS OF LIFE ASSURANCE:

(If passed earlier in Associateship Life Branch, should take Subject 98)

Elements of compound interest, accumulated value and present value-nominal and effective rates of interest - immediate annuities certain and deferred annuities certain - perpetuates - functions included in compound interest tables and their uses.

Redemption of loans - Shrinking funds - average interest yield on the fund of a life office.

Elementary theory of profitability - mortality table - concept of stationary population - expectation of life -select rates.

General nature construction, characteristics and uses of mortality tables, mortality of Indian assured lives - Oriental 1925-35 experience - LIC (1961-64) table, LIC (1970 -73) table and LIC (1975 -79) table.

Premiums - General principles - natural premiums -level premiums- net premiums - office premiums - loading for expenses with profit and without profit premiums-adequacy of premiums and relative consistency - use of commutation function in finding values of premiums and assurance benefits.

Life office valuations - general principles - policy values - retrospective and prospective methods of valuation of liabilities -different methods of valuation - concept of estate and trading profit special reserves and adjustments in the valuation - sources of surplus - methods of distribution of surplus.

SUBJECT 82 - STATISTICS :

Statistics : Elementary statistical methods - tabulation, diagrammatic, representation and frequency distribution - measures of location and dispersion.

Sampling - different methods of sampling surveys - sampling errors and non-sampling errors.

Probability-conditional probability-joint and marginal probability-independent events - Baye's theorem - probability distributions.

Estimation - interval estimation - confidence intervals - determination of sample size -testing of hypothesis - type I and type II errors -students distribution - one tail test and two tail test.

Analysis of Variance (including Latin square)-co-relation and regression - time series - index numbers - (candidates will be supplied with graph sheets and log tables in the examination. They may also make use of their own calculating machine in the examination)

SUBJECT 83 - GROUP INSURANCE & RETIREMENT BENEFIT SCHEMES:

Historical background to employee benefits in India - Provident funds, Superannuation and Gratuity Schemes.

Group Insurance Schemes - Segments of group schemes market - origin and development of group schemes characteristics of groups - group underwriting, rate making and experience rating adjustment.

Gratuity and Superannuation Schemes - Different ways of arranging schemes - Unfunded schemes and funded schemes - Trustee administered and insured schemes - methods of costing past service benefits and future service benefits - annual premium and single premium - method of costing, definite funding and indefinite funding and controlled funding, methods - cash accumulation system of securing gratuity and pension benefits determination of contribution - rates under gratuity and benefit purchase Superannuation scheme.

Legal aspects and taxation treatment of retirement provision under provident, gratuity and Superannuation funds-Documentation of Trust deeds and Rules.

Data Processing and Group Schemes.

NON - LIFE :

SUBJECT 85 - RE INSURANCE :

Function of re insurance - re insurance terminology - Legal principles applicable to re insurance.

Methods of re insurance - General characteristics -Uses - procedure -advantages and disadvantages.

Facultative method - Quota share treaty - Surplus treaty - combined quota share and surplus treaty - Facultative obligatory cover - open cover - pools

Non-proportional method - excess of loss treaty - umbrella - cover - Methods of rating, Facultative excess of loss cover.

Treaty wordings and clauses.

Designing and arranging of re insurance programme - fixing of retentions - PML underwriting - Placing the re insurance programme - Reciprocal trading - Indian re insurance programme.

Inward re insurance business - objective and underwriting policy - appointing of re insurance statistics - EDP applications - re insurance markets - London - Europe - New York - Japan - East Asia - India - State Reinsurance corporation Regional Reinsurance Corporations - captive Insurance Companies.

SUBJECT 86 - RISK MANAGEMENT:

Risk and uncertainty - Subjective risk attitudes to risk - Acceptable risks versus unacceptable risks - classification of risk - The cost of risks - Handling risks.

The scope and objective of risk management in corporate bodies, nationalised industries, local government and public utilities personal risk management.

Risk management process and administration

Techniques of risk managements-Risk identification-Risk evaluation-Statistical methods and probability concepts-Decision taking under conditions of risk and uncertainty-Risk avoidance-Risk reduction and loss control-The factories Act,1948 - Role of Insurance Surveyors in loss prevention - Mutual Aid Schemes.

Risk financing - Risk retention - Risk transfer.

Insurance - Benefits and limitations - Partial insurances - Captive insurance companies.

Risk management and corporate objectives - Risk management policy - Risk management and functional management.

SUBJECT 87 - LAW AND ECONOMICS OF INSURANCE:

Law - The principles of the law of contract (India Contract Act, 1872) - Ingredients of a valid contract - Modes of discharge of contracts - Contracts of indemnity and guarantee - Bailment - Assignments - Law of agency - Law of arbitration - application to Insurance. Laws regulating insurance business - Life Insurance Corporation Act 1956 - General Insurance Business Nationalisation Act, 1972 - Insurance Act, 1938.

Economic -Economic Analysis - Concept of equilibrium - Resource allocation - Concepts of supply and demand - Theory of production - Analysis of costs - Theory of distribution - Equilibrium price under different market structures - non-price competition - Application to insurance.

Concept of social control and nationalisation - Economics of public enterprise and insurance, Monopolies and Restrictive Trade Practice Legislation.

COMMON :

SUBJECT 88 - MARKETING & PUBLIC RELATIONS:

Conceptual frame - Work of Marketing - Marketing in Insurance - Systems approach to Marketing - Marketing management - Strategy planning - Marketing research and information systems important consideration pertaining to Product - Pricing - Consumer behaviour - Promotion - Advertising & PREMIUM - Publicity and its uses - sales promotion - personal selling - Developing a sales force Social dimensions of marketing.

SUBJECT 89 - MANAGEMENT ACCOUNTING:

Accounting : Basic Principles - Preparation of Final Accounts relating to life and general Insurance Business.

Management Accounting - Definition and objects - Ratio Analysis - Budget and Budgetary Control - Importance of Cash flow analysis - Working Capital/ management.

Cost Accounting - Standard Costing - Marginal Costing - Use in Industry.

Methods of Capital Appraisals - Financial Institutions - Investment of funds - Effective Management Information Systems - Use of Computers.

OPTIONAL :

SUBJECT 90 - PERSONNEL MANAGEMENT:

Evolution and Development of Management

Approaches : Max Webber's ideal Bureaucracy - Taylor's Scientific Management movement - Administration theory - Human Relations approach - Systems approach and the Contingency approach.

Management Function : Planning - Organising - Line and Staff concepts - Authority - Decentralisation - Delegation - Differentiation and Specialisation.

Management Practices : Role of Manager - Concept of work Sources and extent of authority -Responsibility and accountability.

Some Management Processes : Decision making - Leadership styles job attitudes - Groups and group dynamics.

Managing planed change, overcoming resistance to change.

Management of Human Resources: Personal Management - Overview and functions - Manpower planning - job analysis - Recruitment - Selection - Induction and placement - Training and Development - Appraisal - Counselling

Other Personnel Functions : Wage administration - Industrial relations - Disciplinary procedure - Personal research.

Management and Society : Management and the Publics - Quality of life - Social responsibility.

SUBJECT 97 - LEGAL ASPECTS OF INDUSTRIAL RELATIONS:

Background of Labour Laws - Sources of Industrial Laws - Constitutional provisions - prerogative Writs - Social Justice - Natural Justice

Industrial Disputes Act, 1947
Definition of certain terms - 'Industrial Dispute' - 'Industry' - 'Workman'-'Employer'-'Wages'-'Appropriate Government'.

Distinction between individual dispute and Industrial dispute.

• Authorities under the Act

• Works committee

• Grievance Settlement Authority

• Conciliation

• Procedure and Power of conciliation and conciliation Officers, Boards, Court and Tribunal

• Boards of Conciliation

• Labour Courts

• Industrial Tribunals and National Tribunals

• Reference of Dispute to various authorities.

• Representation of parties.

• Awards and settlements

• Notice of change-conditions of service to remain unchanged during tendency of proceedings.

• Suspension

• Strike

• Lockout and lay off

• Retrenchment

• Transfer and closure of undertakings

• Offences under the Act

• Recovery of money due from an employer

• Jurisdiction of Courts

• Unfair Labour practices

• Shops and Establishments Act

• Applicability of the Act

• Registration of Establishment

• Hours of Work-Rest interval-weekly holiday - leave

• Application of other Acts to shops and establishments

• Workmen's Compensation Act, 1923

• Definition of Workman and wages.

• Employers liability for compensation

• Payment of Wages Act, 1936

• Objective and scheme of the Act

• Definition of 'wages'

• Trade Unions Act, 1926

• Scope and objects of the Act

• Regulations and trade unions

• 'Trade disputes' and 'industrial disputes'

• Payment of Gratuity Act, 1972.

• Objects of the Act.

Payment of gratuity - Determination of amount of gratuity - Nomination for gratuity payment

For better understanding and quick grasp of the subject matter, candidates are advised to go through the following Bare acts.

• Industrial Dispute Act, 1947

• Workmen's Compensation Act, 1923

• Trade Unions Act, 1926

• Payments of Gratuity Act, 1972

• Shops and Establishments Act

• Payment of Wages Act, 1936

Apart from the above, regular perusal of the journals reporting the decisions of the industrials, Tribunals, High Courts and Supreme Court in labour cases as well as amendment to the relevant Acts is necessary to keep abreast of current development in labour legislation.

SUBJECT 98 - DATE PROCESSING:

(Non-Life Branch only)

Unit record System Punching and Verifying machines, Sorter interpreter, Reproducer, Collator and Tabulator, Unit Record applications in insurance industry.

Evolution of computers-generations of computer-binary arithmetic-concept of a computer-Central Processor, Storage, arithmetic and logic unit, control unit.

Input/Output Units, Tapes, disc, recording structures on magnetic media.

Programming techniques - Machine level language, assembly level languages, higher level languages.

Flow-charge-different types of flow-chart-some simple examples of flow charting techniques-Decision tables

Operating Systems - Off line spooling - double buffering, multiple programming - time sharing

The different constituents of a data processing department and their functions - system analysis, programming, operations and input/output control - systems development.

Computerisation in insurance industry - need for computers - branch level mechanisation - regional level mechanisation - combination of the two.

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