PAPER-8 Banking & Insurance – Laws & Practice
CS Professional Mod 2 Electives
Taught by Faculties:
Syllabus
Objectives :
a To develop a robust knowledge base pertaining to significant facets of Banking Sector among those students who wish to pursue a career in Banking Sector.
b To impart knowledge on insurance related concepts to the students with the aim of broadening professional opportunities in the arena of insurance. Level of Knowledge: Expert Knowledge Part I : Banking Laws (50 Marks)
1. Overview of Indian Banking System:
*Indian Banking System – Evolution
*Reserve Bank of India and its role
*Structure of Banks in India
*Other Financial Institutions in India
2. Regulatory Framework of Banks:
*Legislations applicable to Banking Sector in India
*Salient features of legislations applicable to Banking Sector in India
3. Control over Organization of Banks :
*Powers of Reserve Bank of India
*Licensing of Banking Companies
*Shareholding in Banking Companies
*Subsidiaries of Banking Companies
*Board of Directors of Banking Companies - Restrictions on Employment l Control over Management
*Governance Practices in Banking Companies
4. Banking Operations :
*Transactions in Banks
*Know Your Customers (KYC) Documents
*Verification and authentication of documents for KYC
*Operational aspects in regard to opening of all types of accounts
*Scrutiny of loan applications / documents
*Operational Aspects of CBS Environment
*Back office operations in banks
*Handling of unreconciled entries in banks
5. Digital Banking :
*Digital Banking
*Components and architecture of CBS
*Core Business Processes Flow and relevant risks
*Controls Reporting System and MIS Data Analytics and Business Intelligence
*Overview of Banking services and IT related risk and controls
6. Payment and Collection of Cheques and Other Negotiable Instruments (NI) :
*Salient features of Negotiable Instruments Act
*Role & Duties of Paying & Collecting Banks
*Endorsements
*Forged Instruments
*Bouncing of Cheques
*Return of Cheques
*Cheque Truncation System (CTS)
*Operational Aspects of Consumer Protection Act
*Banking Ombudsman Schemes 9 Advances, Securities and Documentation :
*Types of Borrowers
*Types of Fund Based Credit Facilities
*Types of Non Fund Based Credit Facilities
*Credit Score Authenticity
*Information Utility (IU)
*Types of Securities
*Types of Charges
*Types of Documents
*Stamping
*Limitation
*Securitization
10. Calculation of Interest and Annuities :
*Fixed and Floating Interest Rates
*Calculation of Simple Interest & Compound Interest
*Calculation of Equated Monthly Instalments
*Calculation of Annuities
*Interest Calculation using Products / Balances
*Amortisation of Debt
*Sinking Funds
11. Performing & Non Performing Assets :
*Classification of Bank Assets
*Income Recognition Norms
*Provisioning Norms
*Corporate Debt Restructuring (CDR)
*Asset Reconstruction Companies (ARCs)
12. Analysis of Financial Statements of Banks :
*Analysis of Financial Statements of Banks
*Disclosure Requirements of Banks
*Additional Disclosures prescribed by Reserve Bank of India (RBI)
13. Risk Management in Banks and Basel Accords :
*Introduction to Risk Management
*Types of Risks in Banking Sector
*Reporting of Banking Risks
*Risk Adjusted Performance Evaluation Basel- I, II & III Accords
*Risk Weighted Assets
*Role of RBI in Risk Management in bank
*Risk Based Internal Audit in Banks (RBIA) Part II : Insurance Laws (50 Marks)
14. Concept of Insurance:
*Introduction
*Evolution of Insurance in India
*Principles of Insurance
*Purpose and Need of Insurance
*Insurance as a social security tool
*Insurance Markets
*Insurance Customers
*Insurance Contracts
*Broad categories of Insurance – Life Insurance, General Insurance, Health Insurance, Specialized Insurance
*Indemnity based Insurance and Benefit based Insurance
*Role of Insurance in Economic Development
15. Regulatory Framework in Insurance:
*Insurance Act, 1938 - Registration of Insurance Companies
*FDI and FEMA provisions pertaining to Insurance Sector
*Registration of Re-insurance Companies
*Requirement of Solvency Margin
*Appointment of MD/WTD/CEO
*Rural & Social Obligations of Insurer
*Advance receipt of Premium
*Prohibition on Rebates
*Restriction on the common directorship
*IRDAI Act, 1999 – Constitution
*Role & Powers of IRDAI
16. Life Insurance:
*Life Insurance Organization
*Premiums and Bonuses
*Plan of Life Insurance
*Annuities
*Group Insurance
*Linked Life insurance policies
*Policy Documents
*Premium Payment
*Policy Lapse and Revival
*Assignment
*Nomination and Surrender of Policy
*Policy Claims
*Insurance Underwriting
17. General and Health Insurance:
(a) General Insurance
*Introduction to General Insurance
*Various sub-classes of General Insurance- Fire & Property, Marine, Miscellaneous – Motor, Health, Personal Accident, Travel, Agriculture & Crop, Aviation, *Engineering, Liability
*Workmen Compensation
*Professional Indemnity
*Directors & Officers Liability
*Other miscellaneous lines of business
*Documents and Forms l Underwriting
*Ratings and Premiums
*Claims under General Insurance (b)Health Insurance
*Introduction of Health Insurance and Health system in India
*Health Financing in India
*Health Insurance Products
*Health Insurance Underwriting
*Health Insurance Policy Forms and Clauses Health Insurance Pricing and Reserving
*Customer Service in Health Insurance
18. Functions in Insurance & Compliance related thereto:(Part – I)
Appointment & Role of Appointed Actuary
*Product Pricing
*Reserving
*Product Review
*Actuarial Valuations
*Review of Financial Condition/ Economic condition Product Design & Filings
*File & Use and Use & File
*Product Filing Guidelines Underwriting
*Risk selection l Risk Tolerance
*Rating
*Pricing
*Loading & Discounts
19. Functions in Insurance & Compliance related thereto: (Part – II)
Marketing & Distribution Channels of Insurance Products:
*Individual Agency
*Corporate Agency
*Insurance Brokers
*POSP (Point of Sales Person)
*Web Aggregator
*Common Public Service Centres (CPSC)
*Insurance Marketing Firm l Motor Insurance Service Providers (MISPs)
*E-commerce Platform
*Ceiling of Commission
*Remuneration & Rewards to Insurance Agents & Intermediaries Other Insurance Participants:
*Network Hospitals
*Third Party Service Providers (TPA) l Surveyors and Loss Assessors
*Forensic Investigators
*Pre-Inspection Agencies
*Insurance Repositories Claims & Customer Services, Grievance Management
*Protection of Policyholders’ Interest
*Grievance Management
*Claim Settlement Process
*Reporting
* Management of Unclaimed Amount of Policyholders
*Advertisements
*Ombudsman Rules
*Consumer Forums
20. Functions in Insurance & Compliance related thereto: (Part – III)
Investments:
*IRDAI Regulations on Investments
*Classification of Investment categories
*Investment of Assets of Insurers carrying life insurance business
*Investment of Assets of Insurers carrying General insurance business
*Decision making for Investment of Funds
*Investments Brokers Role
*Investing in Capital Markets
*Stewardship Codes Accounting :
*IRDAI Regulations on preparation of Financial Statements
*Analyzing the Financial Statement
*Accounting of Direct, Re-insurance, Co-Insurance and Investment Transactions
*Expense of Management
*Reserving techniques (UPR, PDR, IBNR & IBNER) IT, Cyber security & Data Protection Compliance
21. Functions in Insurance & Compliance related thereto:(Part – IV)
Risk Management:
*Various types of risks in Insurance Companies and managing the same (like market risk, product risk, investment risk, liquidity risk) l Role of Risk Management Committee
*Business Continuity Procedures
*Risk Governance Re-Insurance:
*Concepts
*Reinsurance Markets
*Types of Re-insurance Arrangements- obligatory
*quota share
*treaty and facultative
*Proportional and non-proportional
*Designing and framing of Reinsurance programme
*Placements of reinsurance covers – treaty and facultative Coinsurance
22. Functions in Insurance & Compliance related thereto: (Part – V)
Corporate Governance:
*IRDAI regulations on Corporate Governance
*Role and responsibilities of the Board of Directors, Independent Directors
*Delegation of functions to various Committees of Board, Audit Committee, Nomination & Remuneration Committee, Investment Committee, Risk Management *Committee, Policyholders, Protection Committee, CSR Committee, other Non-Mandatory Committees
*KMPs & their roles & responsibilities
*Audit & Auditors
*Compliance management
*Whistle Blower Policy Compliance Management, Regulatory Filings/ Reporting/ disclosures and other Compliances
*Compliance Management Framework
*Role of Compliance Officer
*Regulatory Filings/ Reporting & Disclosures - BAP Reporting
*GIC/ LC and IIB Reporting Other Compliances:
*AML/ PMLA Compliance
*Place of Business
*Outsourcing Regulations
*Power of Investigation and Inspection by IRDAI
*Penalty for Default in complying with or act in contravention of the Insurance Act
*Power of Court to Grant Relief
*Cognizance of Offence
*Appellate Provisions-Appeal to Securities Appellate Tribunal
24. Professional Opportunities:
*As Company Secretaries and Compliance Officers
*As Independent Directors
*As Governance Risk professionals
*As Corporate Governance professionals and advisors As Secretarial Auditors
*As advisors for various compliances of Companies Act, Insurance laws, IRDAI Regulations, SEBI Regulations, Other legislations
*As arbitrators
*As surveyors
*As agents and marketing professionals
*As valuation experts
*As legal advisors
*CSR Professional
*Policy Development and Drafting
*Trainer to Agents/ Employees
*Principal Officer under AML Laws
*Principal Officer of IMF/ CA/ Brokers/ Web Aggregators
