Page 39 - DCOM309_INSURANCE_LAWS_AND_PRACTICES

Insurance Laws and Practices

Notes Risk Management: It is defined as the identification, analysis and economic control of those
risks, which can threaten the assets or earning capacity of an enterprise.

2.9 Review Questions

1. Define insurable risks. What are the classes of risk and also discuss their insurability?
2. Explain the main features of insurable risks.
3. What are the different kinds of risks? Explain with the help of a diagram.
4. What is the need for insurance? Explain in detail with relevant examples.
5. Discuss the importance of insurance in business.

6. Define and explain risk management.
7. Discuss the ways of managing risk.
8. Describe the requirements of an insurable risk.

Answers: Self Assessment

1. Quantification 2. Frequency, severity

3. Speculative 4. Static
5. Planned 6. Equity
7. Environmental 8. Unemployment
9. Pooling 10. Economic

11. Saving 12. Production
13. Operations 14. Structure
15. Assessment 16. Additional
17. Loss 18. Occurrences

2.10 Further Readings

Books Gulati, Neelam. C. (2011), Banking and Insurance, Excel Books.

Gulati, Neelam. C. (2013), Principles of Risk Management and Insurance, Excel Books.
Krishnaswamy, G. (2009), Principles and Practice of Life Insurance, Excel Books.
Misra, M.N. and Mishra, S.B. (2009), Insurance Principles and Practices, S. Chand
Publication.
Sahoo and Das (2009), Insurance Management: Text and Case, Himalaya Publication.

Online links http://nilum.hubpages.com/hub/Importance-of-Insurance

http://smallbusiness.chron.com/importance-insurance-business-271.html

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