M.B.A. DEGREE EXAMINATION, APRIL 2016
Second Semester
BANKING AND INSURANCE: LAW AND PRACTICE
(2012 onwards)
Time 3 Hours Maximum 75 Marks
Part A 3 15)
Answer all questions.
1. Define banking.
2. What is bill of exchange?
3. What is priority sector lending?
4. Write the principles of Insurance.
5. What is risk management in life insurance?
Part B 10 50)
Answer all questions choosing either or
6. Explain the role of RBI and its control over
commercial banks.
Or
Explain the debtor creditor relationship between a
banker and a customer and highlight the differences
of such relationship from other commercial
relationships.
Sub. Code
622702
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7. What is a Negotiable Instrument? Explain its
salient features.
Or
What are the various types of crossings that may be
used on a cheque? Give suitable examples in each
case.
8. Explain the different lending policies in detail.
Or
Discuss the different types of securities a bank can
accept for granting loans.
9. Explain the provisions of IRDA Act with regard to
the functions and powers of Insurance sector.
Or
Provide your arguments with respect to
Nationalization Vs. Privatization of Insurance
business.
10. Enumerate the important clauses of accident and
motor insurance.
Or
Explain the concept of risk and elaborate the
methods of handling risks.
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Part C
Compulsory.
11. Case:
A paying banker had received a telegram from the
drawer of a cheque to stop payment of a bearer cheque,
quoting its number, date, name of the payee, and the
amount mentioned their in. Believing that the
telegraphic message, containing all the relevant
particulars of the cheque, must be a genuine one, he had
returned the cheque under the objection 'payment
stopped by drawer'. But when the payee of the cheque
approached the drawer of the cheque that the cheque in
question was returned unpaid by the bank under the
aforementioned objection, the drawer of the cheque
visited the bank to confront the banker that the telegram
was hot set by him. The banker pleaded that in view of
the fact that the telegram had contained all the relevant
particulars of the cheque, he had considered it to be a
genuine one. He had, there fore, rightly returned the
cheque unpaid under the objection 'payment stopped by
drawer'.
Questions:
Do you think the stand taken by the banker in this
case in sustainable in court of law?
What specific suggestions will you like to give to the
paying banker when facing such problems in future?
Give reasons in each case.