M.B.A. DEGREE EXAMINATION, APRIL 2017
Second Semester
INTRODUCTION TO INSURANCE
(2013 onwards)
Time 3 Hours Maximum 75 Marks
Part A x 3 15)
Answer all questions.
All questions carry equal marks.
1. Who are insurance brokers?
2. Briefly explain the role of ombudsman in resolving
disputes in insurance.
3. Which insurance corers non-human objects? Give
examples.
4. Outline the recent reforms in the Indian insurance
industry.
5. What are the ways in which principle of atmost good faith
can be breached?
Part B x 10 50)
Answer all questions, choosing either or
All questions carry equal marks.
6. Describe the concept of insurance and its evolution.
Or
Classify risks and examine how insurance covers
them.
Sub. Code
632702
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7. Illustrate and explain how five insurance works.
Examine the difference between marine insurance
and hall insurance.
Or
Outline the scope of miscellaneous insurance and its
emergence in today's industry.
8. What are the objectives of IRDA? Discuss its role as
a regulator of insurance business.
Or
Examine the evolution of life insurance industry
and the recent changes after private players have
entered into Indian market.
9. Describe the circumstances related to insurable
interest. In what stages insurable interest need to
be proved?
Or
What are the different types of policies available?
On what types of insurance do they depend upon?
10. Examine the 4Ps of marketing of insurance.
Or
Is insurance selling a concept selling? Elucidate.
Part C x 10 10)
(Compulsory)
11. When Mr. W took out a new household insurance policy
in March 2001, he stated, in response to a question from
the firm, that his house had never been affected by
movement of any kind, such as subsidence, heave,
landslip or settlement.
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In August that year, Mr. W notified the firm that cracks
had developed in the walls of his house. The firm's loss
adjuster concluded that the damage was due to
subsidence. The firm asked Mr. W for a copy of the
structural survey he had obtained before he bought the
house in 1997. The surveyors report concluded "The
property is affected by structural movement evident in
severe cracking to the gable elevation. This appears
significant and likely to be progressive."
During the firm's enquiries it also became aware of a
report on the house that had been prepared in 1996,
shortly before Mr. W bought the property. Although this
recommended repairs to the drains, they had never been
carried out.
The firm cancelled the policy, saying it would never have
been issued if the firm had known about the existing
problems.
Mr. W said the firm should not have done this: as he had
answered the questions on the application form correctly
to the best of his knowledge.
When the application form was inspected, it was noted
that the firm had asked a very clear question about any
incidence of subsidence or other kinds of movement.
However, Mr. reply had not fairly represented the
true picture and had made no reference to the findings of
the surveyor he consulted before he bought the house.
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Questions
Is the insurer right in cancelling the insurance
claim Justify.
What precautions should be taken while filling an
application for household insurance?
Examine the role of an insurance surveyor in this
case.