M.B.A. DEGREE EXAMINATION, APRIL 2017
Second Semester
BANKING AND INSURANCE LAW AND PRACTICE
(CBCS 2014 onwards)
Time 3 Hours Maximum 75 Marks
Part A x 3 15)
Answer all the questions.
All questions carry equal marks.
1. What is 'Right of
2. What is the purpose of crossing of a cheque?
3. What is hypothecation?
4. What is the meaning of IRDA?
5. What is the meaning of risk with respect to insurance?
Part B x 10 50)
Answer all the questions, choosing either or
All questions carry equal marks.
6. Explain how does RBI exercise control over Banks?
Or
Discuss the recent developments in E-banking.
Sub. Code
622702
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Sp 6
7. What are the essentials of a promissory note?
Or
Describe the statutory protections available to a
paying banker.
8. Discuss the advantages and disadvantages of any
two securities for loan.
Or
Enumerate the types of borrowers and the purposes
for which they borrow.
9. Discuss the principles of insurance.
Or
Discuss the recent developments in insurance
sector.
10. Explain the settlement of insurance claims under
Motor Vehicle Insurance.
Or
Examine the role of company secretary in risk
management through insurance.
Part C 10 10)
Compulsory
11. Read the following case and answer the questions.
Neelima opened a savings bank account with Dhan
Bank. She was handed over a copy of rules and
regulations for operating the account. It provided
that the cheque book should be kept under lock and
key and for loss, if any, arising from not complying
with requirement, the bank will not be responsible.
Neelima kept the cheque book in drawer and one of
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Sp 6
her office colleagues took off one cheque leaf and by
forging her signature withdrew 2 lakh from the
bank. She claimed refund of this amount from the
bank. Bank refused to pay stating that the loss has
been caused due to negligence on part of the
customer. She has filed an appeal against the bank.
Give your decision on the case with reasons.
Kapil purchased an automobile service station from
Vimal. The purchase price included the costs of
building, equipment and other assets. The business
was financed by a loan taken by Kapil from a
scheduled bank, which also held a mortgage of the
building. Kapil, after purchase, converted one of the
car-repair bays into a quick-service restaurant.
Kapil had secured an insurance cover on the
property but did not disclose to the insurer about
the conversion. Six months after the commencement
of the business, a car undergoing servicing at the
station caught fire and damaged the roof over a bay
in the restaurant area. Could Kapil's insurer deny
coverage for fire?
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