MODULE III: PRICING OF INSURANCE PRODUCTS-

Unit 1 : Meaning of rate/premium, Objectives of rate making, Rate making in life insurance business – Basic methods of rate making – Net single premium – Net annual level premium – Premium concepts – Level premium – Basic premium – Office yearly premium – Premium tables – Tabular premium – Rebate – Extra premium – Rider premium – Bonus – Calculation of premium and bonus.

Unit 2: Rate making in general insurance business – Principles – Basic methods of rate making – Judgment rating – Class rating – Merit rating.

Unit 3: Insurance Regulations in India
Insurance Act, 1938 – Summary provisions of Insurance Act, 1938 – Insurance Regulatory and Development Authority (IRDA) – Introduction – Purpose, Duties, Powers and functions of IRDA – Operations of IRDA – Insurance policyholders’ protection under IRDA – Exposure/Prudential norms, Summary provisions of related Acts – Consumer Protection Act and Transfer of Property Act.

Suggested Readings:

  1. George Rejda, Principles of Risk Management and Insurance, Pearson Education.
  2. S. Balachandran, General Insurance, Insurance Institute of India.
  3. S. Balachandran, Karve, Palav, Life Insurance, Insurance Institute of India.
  4. M. Y. Khan, Indian Financial System, Tata McGraw-Hill.
  5. Bharti Pathak, Indian Financial System, Pearson Education.
  6. C. Arthur, William Jr., Michael Smith, Peter Young, Risk Management and Insurance, McGraw-Hill
  7. Trieschmann, Gustavson, Hoyt, Risk Management and Insurance, South Western College Publishing.
  8. Gupta, P. K, Insurance and Risk Management, Himalaya Publishing House
  9. Insurance Theory and Pratice , Nalini Prava Tripathy & Prabir Pal, Prentice – Hall of India , Pvt Ltd, New Delhi