Licentiate Examination Syllabus

Subject 01- Principles of Insurance

(Common Subject for Life and General)

• The concept of Risk - Kinds and classification of risks - Assessment - Transfer.

• The concept of Insurance - Classification of Insurance - Types of Life Insurance, Pure and Terms - Types of General Insurance, Fire, Marine, Motor, engineering, Aviation and Agricultural, - Insurance of Property, Pecuniary interest, liability and person.

• Insurance professionals and intermediaries.

• Basic principles of Insurance - Utmost good faith - Insurable interest- Material facts - Indemnity -Proximate cause.

• Legal Principles of Insurance - The India Contract Act, 1872 - Insurable interest - Nomination and assignment - Utmost Good faith - Indemnity - Subrogation - Contribution - Proximate Cause.

• Financial Principles - Premium funds- Investments - Reserves Surplus-Valuations of Surplus.

• Theory of rating -Actuarial principles-Mortality Tables-Physical and Moral Hazard-Representations-Warranties-Conditions.

• Risk appraisal-Risk Selection-Underwriting

• Reinsurance-Concept and Methods.

Note: There will be 3 objective type of questions. Out of 10 questions, candidate is expected to attempt 8 questions only.

Subject 02 - Practice of Life Assurance (Life Branch)

Life Insurance Organisation - The Indian Context, ;The Distribution System, Function of Agents, Appointment and Continuance of Agency, Remuneration to Agents, Trends in Life Insurance distribution Channels.

Plans of Life Insurance - Need Levels, Term Life Insurance, Increasing / Decreasing Term Policy, Whole Life Insurance, Endowment Insurance, Money Back Endowment Plan, Marriage Endowment Plan, Educational Annuity Plan, Children Deferred Assurance Plans, Annuities.

Group Insurance - Nature of Group Insurance, Types of Group Insurance, Gratuity Liability, Group Superannuation Scheme, Other Group Schemes, Social Security Schemes.

Other Special Need Plan - Industrial Life Insurance, Salary Saving Scheme, Disability Plans, Sickness related, Unit Linked Insurance plans.

Application & Acceptance - Prospectus, Proposal Forms & other related documents, Age proof, Special Reports.

Policy document - need and format - Preamble, Operative clauses, Proviso,Schedule, Attestation., conditions & Privileges, Alteration, Duplicate Policy.

Premium, Premium calculation, Days of grace, Non-Forfeiture Options, Laps and Revival Schemes.

Assignment Nomination Loans-Surrenders-Fore closure-Married Women's Property Act policy, Calculations.

Policy Claims, Maturity Claims, Survival Benefit Payments, Death Claims, Waiver of evidence of title, Early claims, Claim concession, Presumption of Death, Accident Benefit and Disability Benefit, Settlement options, valuations and Bonus, Distribution of Surplus.

Types of Re-insurance, Exchange Control Regulations, Payment of Premia, Payment of Claims etc., Assignment in favour of Non-Residents.

Note: There will be 3 objective type of questions. Out of 10 questions, candidate is expected to attempt 8 questions only.

Subject 11-Practice of General Insurance (General Branch)

Insurance Legislation - General Insurance Business (Nationalisation) Act 1972 - The Insurance Act 1938 (as amended ) -other statutes having a bearing on General Insurance - Consumer Protection Act 1986 and implications - The structure of the Insurance market in India - Insurance marketing network and customer service.

Insurance forms - proposals - Cover Notes - Certificates of Insurances - Policies - Endorsement - Renewal Receipts.

Scope of Fire, Marine (Cargo and Hull), Motor, Miscellaneous Accident, Aviation, Engineering, Liability, Professional Indemnity Agricultural Insurances.

Special classes of Insurances, Oil and Energy, Satellite Insurances and Special Contingency covers, Industrial All Risks, Project Insurances and Advances Loss of Profits.

Physical and moral hazard - Rating practice (Tariff/Non-tariff) - Bonus/ Malus Methods of premium calculation - Return of premium - Pre-acceptance risk inspection - Risk inspections for special rating and premium discounts-Periodic inspections of large projects.

Underwriting practice in India and other important insurance markets-Co-insurance and re-insurance practice. New Business and Renewal Procedure.

Claims Procedure - Survey by professional Surveyors - Role of surveyors in loss minimisation and salvage - use of insurers, own Surveyors in other markets- Settlement of claims and recovery procedures.

Risk management and Risk control-Role of Insurance Brokers in Risk management, Insurance Programming and Placement.

Note: There will be 3 objective type of questions. Out of 10 questions, candidate is expected to attempt 8 questions only.

SUBJECT 12 - INSURANCE BUSINESS ENVIRONMENT

(Common Subject for Life & General)

The Legal Environment, The Insurance Act 1938 (as amended), Life Insurance Corporation Act, 1956, General Insurance Business (Nationalisation) Act, 1973, Insurance Regulatory Authority (Proposed).

Motor Vehicles Act, 1939 & 1988. The Inland Steam Vessels, 1917 (as amended) Marine Insurance Act, 1963, The carriage of Goods by Sea Act, 1925, The Merchant Shipping Act, 1958, The Indian Railways Act, 1890 (as amended), The carriers Act, 1865, The Carriage by Air Act, 1948, The Indian Stamp Act 1899, Consumer Protection Act, Arbitration Act, Lok Adalats.

The Economic Environment, Indian Economy, Globalisation and Liberalisation, Agricultural Sector, Industrial Sector, Small Scale Sector, Tiny Sector, role of Insurance in International Economy, Monopoly and Competition Demographic Factors.
GATT: Most favoured Nation Clause, Tariff Negotiation W.T.O. Public Sector, Private Sector, Joint Sector, Chamber of Commerce.

The Commercial Environment, Home Trade, Wholesale, Retail, Foreign Trade, Imports, exports, Documents used Export Promotion Council, Export Pricing, Forms of Business Organisation, Sole Trader, Partnership, Joint Stock Company, Types of Companies, Memorandum and Articles of Associations, Types of Capital, Co-operative Organisation. Warehousing Transport-Rail, Road, Inland Water, Sea, Air Shipping System, All India Shippers Council.

The Financial Environment, Role of Insurance in National and International Economy, Role of Financial Institutions, Insurance Companies, Financial Market Structures and Functions, Mutual Funds, Non Banking Financial Companies, Housing Finance, Banking, Leasing & Hire Purchase Financing, Investments, Basic Accounting Systems, Trial Balance, Revenue Account, Profit & Loss Account Balance Sheet, Bank Reconciliation Statement, Audit & Inspection.

Office Organisation: Inward/Outward Mail Filling Systems, Business Correspondence, Methods of Communication.

Insurance Business outside India.

Note: There will be 3 objective type of questions. Out of 10 Questions, candidate is expected to attempt 8 questions only.

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