... MARINE INSURANCE Submitted to Prof. Dr. Mujahidul Islam Evening MBA Program Department of Banking, University of Dhaka Prepared & Submitted by Mohammad Abu Zamih ID # 50917062 (17th Batch) Roksana Alam ID # 50917063 (17th Batch) Evening MBA Program Department of Banking, DU Course Title Insurance & Pension Fund Management Date of Submission Feb 21, 2012 Mujahidul Islam Professor Department of Banking, Faculty of Business Studies, University of Dhaka Subject: Submission of Term Paper Dear Sir: As instructed and part of our academic program under EMBA, We do hereby submit a Term Paper on “Marine Insurance” for your kind review and necessary reference. The Term Paper has been prepared on the basis of guidelines and instructions as given by you and the information, supporting documents as collected from the electronic media. We have engaged our intense efforts to bring out this study report with the target of achieving perfection. We shall be highly obliged if you kindly accept my report. Thanking you. Yours sincerely, ______________________ Mohammad Abu Zamih ID # 50917062 (17th Batch) Roksana Alam ID # 50917063 (17th Batch) MBA (Evening) Program Executive Summary The following paper is intended to be an analysis and a strategic review of “Marine Insurance”...
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...Babatunde History of insurance The first examples of insurance related to marine activities. In many ancient societies, merchants and traders pledged their ships or cargo as security for loans. In Babylon creditors charged higher interest rates to merchants and traders in exchange for a promise to forgive the loan if the ship was robbed by pirates or was captured and held for ransom. In post medieval England, local groups of working people banded together to create "friendly societies," forerunners of the modern insurance companies. Members of the friendly societies made regular contributions to a common fund, which was used to pay for losses suffered by members. The contributions were determined without reference to a member's age, and without precise identification of what claims would be covered. Without a system to anticipate risks and potential liability, many of the first friendly societies were unable to pay claims, and many eventually disbanded. Insurance gradually came to be seen as a matter best handled by a company in the business of providing insurance. Insurance companies began to operate for profit in England during the seventeenth century. They devised tables to mathematically predict losses based on various data, including the characteristics of the insured and the probability of loss related to particular risks. These calculations made it possible for insurance companies to anticipate the likelihood of claims, and this made the business of insurance reliable and profitable...
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... Hull and machinery insurance is used to protect the ship owner’s balance sheet against the total loss of his assets, or his cash flow and profits against the loss of funds necessary to pay for repairs. All policies incorporate a deductible whereby the assured bears the first tranche of any loss. The hardening insurance market of the 1990s saw deductibles increase very significantly and the trend was not reversed as the markets softened; evidently ship owners had become accustomed to retaining a portion of the partial loss risk. The majority of ship owners also retain the loss of earnings risk entirely. Loss of hire insurance remains relatively expensive and even when it is purchased it will usually incorporate a deductible period of 14 days or more. With modern repair techniques, serious hull damage can be repaired in relatively short periods; it is more often machinery damage, requiring the delivery or fabrication of spare parts that will trigger a claim in a loss of hire policy. In the majority of cases, therefore, the losses arising from the vessel being out of service will fall on the assured. In addition, following a casualty, a variety of costs may be incurred over and above the repair yard account; these all flow from the insured loss but a line has to be drawn in every case to determine whether any such costs fall on the hull and machinery policy. Where a ship is damaged, but is not totally lost, the measure of indemnity, subject to any express provision...
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...Management Risk and Insurance Management Assignment Submitted to: Parul Bhargava Associate professor Submitted by: Dipak kumar sah BBA, 4th sem Assignment Risk and insurance management 1. “Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.” Discuss & also describe the significance of insurance in Indian society. As per the statement “Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.” Insurance acts as a safety for the possible losses to be faced in near future. Insurance means safeguarding against a specific risk which is exposed to. Insurance is a form of risk management in which the insured transfers the cost of potential loss to another entity in exchange for monetary compensation known as premium. Insurance is a special type of contract between a insurance company and its clients in which the insurance company agrees that on the happening of certain events the insurance company will either make a certain payment to its client or meet the certain costs. As supporting the above statement, following are the significance of insurance in Indian society: 1. 2. 3. 4. 5. 6. 7. 8. Insurance provides safety and security Insurance reduces business...
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...INSURANCE CONCEPT: Insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. NATURE: The purpose of any insurance is to provide economic protection against the losses that may be incurred due to chance events such as: 1. Death 2. Disability 3. Medical expenses 4. Home or automobile damage, etc. FUNCTIONS: Basic functions of Insurance 1. 1.Primary Functions 2. 2.Secondary Functions 3. 3.Other Functions Primary functions of insurance • Providing protection – The elementary purpose of insurance is to allow security against future risk, accidents and uncertainty. Insurance cannot arrest the risk from taking place, but can for sure allow for the losses arising with the risk. Insurance is in reality a protective cover against economic loss, by apportioning the risk with others. • Collective risk bearing – Insurance is an instrument to share the financial loss. It is a medium through which few losses are divided among larger number of people. All the insured add the premiums towards a fund and out of which the persons facing a specific risk is paid. • Evaluating risk – Insurance fixes the likely volume of risk by assessing diverse factors that give rise to risk. Risk is the basis for ascertaining the premium rate as well. • Provide Certainty – Insurance is...
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...studying books and practical working environment to large extent. It is really a great opportunity we got to have a real life experience while passing through the process of practical learning. The preparations of internship report on the topic “Overall Performance of Bangladesh General Insurance Company (BGIC)” was no doubt a challenging task, particularly for a student. I have tried my level best to analyze in depth the overall International and Domestic Trade and business insurance Services provided by BGIC Bangladesh. My pain will be fruitful if my report serves any purpose of BGIC or my department or my fellow friends interested in having insight into the related matters. 1.2 Rationality of the study . No business can exist without having insurance policy, which is much talked about subject now –a- days. In some cases getting insurance is made compulsory for example motor insurance. But unfortunately a very few studies has been made for insurance services. The report is assigned by our course teacher Professor Dr. Shahid Uddin Ahmed as a part of our BBA program. The report is on the assigned topic “Overall Performance of Bangladesh General Insurance Company (BGIC)”. By conducting this report I can enhance my knowledge and skill to apply various research methods in professional life on higher educational life. The report has given me a chance to raise my quality in developing research instrument and its applications. By doing so, I...
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...about the insurance business in Bangladesh and its prospect in the country under the topic of “The prospect of insurance business in Bangladesh”. In this chapter we will focus on the origin or background of the report, objectives of the report, scope of the research, methodology of the study and also the limitations that we have faced in preparation of the report. 1.1 Origin of the report: We have made the report basically to fulfill the partial obligation for the course of “Insurance and leasing”. In order to have a better idea about the insurance business and its overall condition and prospects in our country our honorable course teacher has approved us to complete the report. We think that this report gives us more or less a moderate idea and information about the insurance business in Bangladesh and at the same time it gives us the necessity of insurance business in the country. 1.2 Objectives of report: The objectives of the report are defined below: * The primary objective of writing the report is fulfilling the partial requirements of the BBA program. As as an essential part of the course of “Insurance and Leasing” we have made the report. * Giving an overall idea of the insurance business sector in Bangladesh including the history and present condition. * Showing some prospects and its opportunity in the overall business sector in the country is also a main objective of the study. Here we have shown the probable prospective area for the insurance business. ...
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...courses to spur economic growth and produce dynamic Managers and Leaders for Africa and the World. This module has been developed for use in the Management University of Africa ODEL Programme by Isabella Sile. She is a lecturer at the Management University of Africa, School of Management and Leadership. Ms. Sile is currently pursuing her PhD in Business Administration –Finance at The University of Nairobi. MODULE OVERVIEW. This module is developed for student taking the course unit “Risk and Insurance Management” in the Bachelor of Management and Leadership Programme. The module follows the outline given below. (Note: Assignments are issued separately) BMT 302 : RISK AND INSURANCE MANAGEMENT. Credit hours: 3 hrs 1.0 COURSE PURPOSE This course equips the learner with skills and knowledge in managing risk and insurance practice and its effects. 2.0 COURSE LEARNING OUTCOMES At the end of this course, the learner should be able to: 1. explain the meaning of risks in insurance; 2. distinguish between the different...
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...CMS 200- INSURANCE AND RISK MANAGEMENT INSTRUCTORS: Joshua Nyangidi COURSE OBJECTIVE ►To introduce students to the concepts of risk and insurance. ►To equip students with the understanding of risk management and practice of insurance. 1: INTRODUCTION 1.1 Concept of risk 1.2 Types of risks 1.3 Response to risk 1.4 Perils and Hazards 2: RISK MANAGEMENT 2.0 Introduction 2.1 Risk Management 2.2 Nature of Risk Management 2.3 Principles of Risk Management 2.4 Risk Management Policy 2.5 Risk Management Strategies (tools) 2.6 Rules in Risk Management 2.7 Risk Management Process 2.8 Risk Management Problems 2.9 Risk Management Evaluation Techniques 3: INSURANCE 3.1 Historical development 3.2 Insurance mechanism 3.3 Requisites of insurability 3.4 Factors Limiting Insurability of Risks 3.5 Functions of insurance 3.6 Benefits of insurance 4: CLASSES OF INSURANCE 4.1 Life and Health 4.2 Liability 4.3 Property 4.4 Pensions 4.5 Transport 5: THE INSURANCE CONTRACT AND PRINCIPLES 5.1 Insurance contract 5.2 Insurable interest 5.3 Utmost good faith 5.4 Indemnity 5.5 Subrogation 5.6 Contribution 5.7 Proximate cause 6: INSURANCE PRACTICE 6.1 Proposal form 6.2 Policy document 6.3 Premiums 6.4 Renewals 6.5 Claims and disputes 6.6 Reinsurance 7: INSURANCE MARKETS 7.1 Buyers of Insurance 7.2 Intermediaries 7.3 Sellers and suppliers of Insurance 7.4 Problems of Marketing Insurance services. 7.5 Competition in the Insurance Industry ...
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...What is Takaful Takaful - Islamic insurance - is founded on the cooperative principle and on the principle of separation between the funds and operations of shareholders, thus passing the ownership of the Takaful (Insurance) fund and operations to the policyholders. The premiums collected from the policyholders are considered as donations and they constitute the Takaful fund from which all claims are reimbursed. At the end of each financial year, after deduction of expenses, any remaining cash surplus will not be retained by the company or its shareholders, but returned to the policyholders in the form of cash dividends or distributions. In this respect, Takaful business is different from the conventional insurance in which the policyholders, rather than the shareholders, solely benefit from the profits generated from the Takaful and Investment assets. The Investment assets representing the Takaful fund that accumulate over the retained reserves, surpluses and provisions are invested by the shareholders who manage the company on behalf of the policyholders. The shareholders are rewarded with a percentage of the profit on these investments. | | | | |Can Muslims engage in risk control? | | | | | | | |It is a Muslim's belief that everything that happens in this world is by the will (Qadha and Qadar) of Allah. Similarly...
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...enforceable. However, it is worthy to point out that while it is generally acceptable that all contracts are agreements, the reverse is not true. Not all agreements constitute a contract. The law of contract may classify contracts as follows: specialty or written contracts, contracts that are evidenced in writing, contracts that are under a seal and simple contracts. Specialty contracts are contracts, which the law specifies that they must be written. A formal structured document embodies a specialty or written contract. Examples of contracts that the law classifies as specialty contracts include insurance contracts like marine insurance, lease and hire purchase agreements and the contracts that will put in place proceedings that are likely to lead to a sale of land. A structured document for these contracts will include title deeds for sale of land contracts, lease agreements, and insurance policy forms. Contracts under seal are recognizable by the law of contract as contracts that are written by a party to the contract, sealed, and then delivered to the other party for their mutual agreement of the details therein and...
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...GENERAL INSURANCE 'Looks to the future with confidence and optimism' 1. Brief the history of General Insurance. In India General Insurance business started, Marine Insurance started on the later part of the 17th century. Before nationalization in 1947 we have 147 insurance companies, foreign and Indian both. But during there nationalization, in 1973 we have 107 companies that merge into four companies, i.e. taken over by Government. General Insurance Corporation of India (GIC) was set up in 1973 as a holding company, with four subsidiary operating companies- National Insurance co. Ltd., New India Assurance Co. Ltd., New India Assurance Co. Ltd., oriental Insurance co. Ltd. and United India Insurance Co. Ltd., with a clear cut mission as set out in the Act. 2. What is the overall scenario in the insurance market in India after nationalisation? GIC and its subsidiaries function through a vast country - wide network of around 4100 offices spread across the length and breadth of the country, GIC has taken the benefit of insurance to almost every district, across hilly terrain and often inaccessible areas of the country. The customer- interface is made easy through a network of agents, development officers and employees at Branch, Divisional and Regional offices as well as at the corporate level. The GIC and its subsidiaries have a workforce of approximately 86,000 in 1973 tainted at various levels through in house training institutions. Now the total number of employees...
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...INSURANCE LAW WK3 Insurable Interest It has been said that insurable interest is one of the great upstanding principles in the formation of the contract of insurance. It is the interest in which the law requires a person to have, to enable him to effect a valid insurance (Per Judge Patterson in Bernard v NEM West Indies Insurance Ltd). According to Lawrence J in Lucena v Carufurd, “Insurable interest is to be interested in the preservation of a thing, is to be so circumstanced with respect to it as to benefit from its existence, prejudice from its destruction.” Before the legislature intervened wagering contracts were not illegal and could be enforced in a court of law. The present position is that no one may effect insurance unless he has an insurable interest in the life or property which he desires to insure. A contract made without such an interest is void. Three statutes brought about this change: The Marine Insurance Act 1906; The Life Assurance Act; and the Gambling Act of 1845. Until the passing of the legislation there was no requirement for insurable interest. The general principle of every contract was simply that it was enforceable by the parties irrespective of the subject matter provided it was neither illegal, immoral nor contrary to public policy. According to Blackstone, gambling was considered a social evil which promoted idleness, theft and debauch among the lower class. Patterson expressed similar views: “A sense of antagonism is aroused in a community...
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...PERSONAL ACCIDENT AND HEALTH INSURANCE OF Course Name: Principles of Insurance Course Code: F-210 Submitted to: Samia Sultana Tani Assistant Professor, Department of Finance, Faculty of Business Studies, University of Dhaka. Submitted by: Group No: Section :B B.B.A 17th Batch Department of Finance University of Dhaka. Date of Submission: 27 November, 2012. A Combined Effort of Sl No. | Name | ID-No. | Remarks | 01 | Rakibul Islam | 17-052 | | 02 | Ivy Akhter | 17-046 | | 03 | Mousumi Saha | 17-154 | | 04 | Morium Sultana Moni | 17-104 | | 05 | Nipul Hosen | 17-058 | | 06 | ShantaDev | 17-086 | | 07 | ShamsunNaher | 17-112 | | 08 | Emaj Sultana | 17-062 | | 09 | FatemaTujJuhura | 17-156 | | 10 | SadiaSharminUrmi | 17-192 | | Letter of Transmittal 27 November, 2012 Samia Sultana Tani Assistant Professor Department of Finance Faculty of Business Studies University of Dhaka Subject: Submission of the Report. Dear Madam, It gives us immense pleasure to submit the report on “personal accident and health insurance of pragati insurance limited” This report is submitted as the requirement to fulfill the course “Principles of insurance”. The experience that we gathered through this research was very interesting, joyful and valuable one. This is an ideal ground for...
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...Health Insurance Fraud By: WAHEED ALKHAMEES KHALED ALNAFEE Further Issues Hospital Administration PA 551 Master of Health and Hospital Administration (Parallel) King Saud University One:- Introduction Definition Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. An insurer, or insurance carrier, is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount of money to be charged for a certain amount of insurance coverage is called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice. The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a financial (personal) loss. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated. Types of Insurance Services Insurance can take a number of different forms. Some of these types: Auto insurance Auto insurance protects the policyholder against financial loss in the event of an incident involving a vehicle they own, such as...
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