DNYANSAGAR INSTITUTE OF MANAGEMENT AND RESEARCH.

MBA-II/SEM-IV/
Specialization: Financial Management

Subject: 403-Fin: Indirect Taxation Code: 403

Faculty Name: Prof. Pappu Gaikwad

Important Instructions

Concurrent Evaluation Components

Sr Components Marks
No
A Written Home Assignment 10
B Scrap Book 10
C News Paper Reading 10
Total 30

1. The submission has to be in the format prescribed for each component.

2. Answers should be in own words, copied answers will be not be marked.
3. Student Name, Contact number & Specialization must be clearly
mentioned on the submission sheets.

A Written Home Assignment

1) Shambhu Pvt. Ltd. was awarded a contract in July 2017 for providing flooring and wall
tiling services in respect of a building located in Delhi by Nath Ltd. As per the terms of
contract, Shambhu Pvt. Ltd. was to provide all the required material for execution of the
contract. However, Nath Ltd also provided a portion of the material. Whether the services
provided by Shambhu Pvt. Ltd. are subject to GST? If yes, determine the GST liability of
Shambhu Pvt. Ltd. from the following particulars ` (i) Gross amount charged by the Shambhu
Pvt. Ltd. 6, 00,000 (ii) Fair market value of the material supplied by Nath Ltd. 1, 00,000 (iii)
Amount charged by Nath Ltd. for the material [included in (i) above] 60,000
Note: CGST 6% and SGST 6%.

2) Mr. H registered in Hyderabad, who is selling goods from Maharashtra to Tamil Nadu.
Turnover of Mr. H is ` 73 lakhs in the preceding financial year. Whether Mr. H is eligible for
Composition? Whether your answer will change if Mr. H is making purchase from Tamil
Nadu and selling goods in Maharashtra?

3) Divyakripa Trust, an entity registered under section 12AA of the Income-tax Act, 1961,
has furnished you the following details with respect to the activities undertaken by it. You
are required to compute its tax liability from the information given below:

Particular Amount (Rs)

Amount received for the Yoga camps organized for elderly people 4, 83,000
Payment made for the services received from a service provider 5, 50,000
located in US, for the purposes of providing ‗charitable activities„
 Amount received for counseling of mentally disabled persons 10, 50,000
Amount received for renting of commercial property owned by the 1, 50,000
trust
Amount received for activities relating to preservation of forests 12, 35,000
and wildlife

Note: Applicable CGST 9% and SGST 9% have been charged separately wherever
applicable. Divyakripa Trust is not eligible for composition levy.

4) Admission to True Theater is ` 90 per ticket for a Tamil Movie as well as for a Hindi
Movie plus entertainment tax ` 10% on Tamil Movie and 20% on other languages. In the
month of November, True Theater sold 2000 tickets of Tamil Movie and 1500 tickets of
Hindi Movie. Find the value of taxable supply of service. Applicable rate of GST is 18% (for
Tamil movie tickets) & 28% (for Hindi movie tickets). Find the GST liability if any.

5) In this case, this would be treated as a continuous journey with a stopover. For the
first leg, the place of supply would be Ahmedabad and since the Location of Supplier (BLR)
and the Place of Supply (AHM) are different, IGST would be charged. For the second leg of
the journey, the place of supply would be Bangalore, and since the Location of Supplier
(BLR) and the place of supply are same, CGST + IGST would be charged. (Passenger
Transportation Services).

6) X Ltd. purchased a machine for Rs. 100,000 and brought it on 1-8- 2017 and paid 12%
IGST. He availed input tax credit and used the capital goods in his business. On 5-11 2018 he
resold it as second-hand machine for 65,000. Find out the amount of tax payable/ ITC
reversible in the above case.

7) Mr. Raj took health insurance policy for his family and paid Rs 900 as SGST. Find the
total annual premium paid by him for this policy rate of GST being 18%

8) Find the amount of bill for the followings intra-state transaction of goods/services.
The GST rate is 5%

Quantity (no. of MRP of each item (in Discount %

Item) Rs)

18 150 10
24 240 20
30 100 30
12 120 20

9) A Computer mechanic in Pune charges repairing cost from five different persons A, B, C,
D, and E with certain discount. The repairing cost and corresponding discount are as given
below.
 Name of the person A B C D E
Repairing Cost (in Rs) 5500 6250 4800 7200 3500
Discount % 30 40 30 20 40

If the rate of GST is 18%. Find the total money (including GST) received by the mechanic.

10) A dealer in Mumbai supplied some items at the following prices to a dealer in Delhi. Find
the total amount of the bill.

Rate per piece (in Quantity (no. of Discount % SGST %

Rs.) pieces)
180 10 - 9
260 20 20 9
310 30 - 9
175 40 30 9

B Scrap Book

1) Journey of Indirect Taxation & important turning point

2) Indian indirect taxation system as per Articles 246

C News Paper Reading

1) How much slab rate of GST for Printed Books, Newspaper, and Picture etc.?
2) All the utility bills were charged on higher rate of tax under GST compare to VAT rates

*(Note: Prepare the slab rate & business magazine, cuttings of newspaper article, pictures,
images etc any one industry.)
 DNYANSAGAR INSTITUTE OF MANAGEMENT AND RESEARCH.
MBA-II/SEM-IV/

Subject: 404-Fin: International Finance Code: 404

Faculty Name: Prof. Nilambari Mohalkar

Important Instructions

Concurrent Evaluation Components

Sr Components Marks
No
A Thematic Presentation 10
B Written Home Assignment 10
C Scrapbook 10
Total 30

1. The submission has to be in the format prescribed for each component.

2. Answers should be in own words, copied answers will be not be marked.
3. Student Name, Contact number & Specialization must be clearly
mentioned on the submission sheets.

A Thematic Presentation

Make a presentation any of the following topics:

1. Capital A/C convertibility

2. International credit rating agencies
3. International Monetary Fund,
4. Issues in Overseas Funding Choices
5. Foreign Exchange Market
6. Global Capital Markets,
7. External Commercial Borrowing
8. International Bond Markets
*Students are also required to submit the print out of presentation slides (At least.
Submit per topic 10 slides)

B Written Home Assignment

Q1. Discuss in detail various sources of international finance.
Q2. What is Purchase Power Parity Principle? Elaborate your answer with suitable examples
Q3. Discuss the factors responsible for the growth and development of Global capital market
Q4. Explain any two types of bonds available in International bond market
Q5. Write any five points of differentiation between International Financial Reporting
Standards (I.F.R.S) and Indian Accounting Standards for Foreign transactions.
Q6. Explore the newest financial trends and technologies through our immersive. You'll learn
how to build tools for directors and boards to seize business opportunities and build
profitable strategies.
Q7. European monetary system from political and economic union to monetary union.
Q8. Compare your estimated spot exchange rates with the corresponding actuals rates. Are
they different to the actuals? Explain why.
Q9. Identify the significant movement of FX rates during the last year of your data and
explain possible reasons for those movements (you are required to cite all your
sources).
Q10. Discuss how those foreign exchange movements have affected the economy in
general (you can use any other information such as trade statistics to justify your
explanations).

C Scrapbook

Make a Scrap Book on

1. International Financial Reporting Standards
2. Indian Accounting Standards
3. International Receivables and cash management
4. Parity Conditions and Managerial Implications
 DNYANSAGAR INSTITUTE OF MANAGEMENT AND RESEARCH.
MBA-II/SEM-IV/

Subject: 407-Fin: Financial Risk Management Code: 407

Faculty Name: Prof. Pappu Gaikwad

Important Instructions
Concurrent Evaluation Components

Sr Components Marks
No
A Model Development 10
B Written Home Assignment 10
C Scrapbook 10
D Thematic Presentation 10
E Case Study 10
Total 50

A Model Development

In this assignment, you are expected to:

 Design strategies to identify, measure and manage different types of risks.
 Apply risk measurement models
 Compute risk based capital for banks
 Develop strategies to manage financial risk
 Demonstrate the essential knowledge and interpersonal skills to work effectively in a
team
 Demonstrate proficiency in writing

B Written Home Assignment

1) Assume the role of a consultant to the CEO of a hypothetical multinational bank, EM
Bank. EM Bank has operations in the Ukraine, including the eastern part of the
country, and in Crimea Regions that have faced severe internal conflict and
instability over the past few months. The CEO of the bank, Mr. Dominique Hall wants
a clear account of the risks faced by the bank.

2) In August 2014, the rating agency, Moody’s, downgraded the credit ratings of South
Africa’s four dominant banks as the country’s financial sector continues to endure
the ripple effects of the collapse of the African Bank the nation’s biggest lender of
unsecured loans. Moody’s said the decision to downgrade Standard Bank, Absa, and
First Randand Ned bank by one notch reflected its view “of the lower likelihood of
systemic support from South African authorities to fully protect creditors in the
event of need”
3) Haimes (2009) suggested that management systems fail for a number of reasons he
described as “sources of failure”. In relation to your business, or a business with
which you are familiar, discuss the implications of these failures types in relation to
the policies, procedures and systems in place. Your response you should explain the
features of your company’s loss prevention arrangements.

4) The principle “as far as reasonably practicable” is used as a regulatory benchmark

target for the obligation to reduce risk to an acceptable level.

5) Select a risk management tool your Discuss the implications for loss prevention, how
it should be applied and your opinion on any difficulties or limitations that have to
be considered in applying it in a business. Are familiar with and discuss its key
features, how it should be applied and its limitations.

6) When Quality Culture and Risk Culture work together and in full cooperation,
harmoniously, synchronously and synergistically, they have a beneficial effect on all
management processes. In such circumstances, Quality Culture and Risk Culture are
a great source of strength, as, in the same way, without the above mentioned
elements, they can be a major source of weakness for any organization. Without an
adequate and effective Quality Culture and Risk Culture, not even the best quality
management and risk management programs can totally prevent the making of bad
decisions. A strong Quality Culture and Risk Culture in any organization can only be
achieved if it is truly supported both by the management and by all the employees.
Bearing all this in mind, Quality Culture and Risk Culture are, above all, a driving
force and play a decisive role in the development of effective management.

7) “Risk and return go parallel”. Explain this statement with suitable examples. And also
define different kinds of risk.

8) Should you use implied standard deviation or historical deviation to forecast

Volatility? Explain your choice with reason.

9) “Risk and return go parallel”. Explain this statement with suitable examples. And also
define different kinds of risk.

10) “KMV Model uses two functions to find the two unknowns: V A and σ A. It proposes
a new way of thinking and a framework in corporate asset valuation by means of
option pricing theory.” Explain this statement.

C Scrapbook

1) Portfolio theory and risk management

2) In the wake of financial crisis what next?
3) Risk journals
 D Thematic Presentation

Prepare the power point presentation on two of the following topics:

1) Measuring risk using Value-at-Risk

2) Value at risk for fixed income portfolio
3) Currency risk analysis in global investing
4) Simulation and Option Pricing Models
5) Credit Risk: Counterparty Risk, Bankruptcy Risk, Credit Scoring and Lending, Bond
Rating.

*Students are also required to submit the print out of presentation slides (At least.
Submit per topic 10 slides)

E Case Study

A) In September 2004, Wipro had an accumulated mark to market loss of over Rs. 2.5
billion on a $1 billion hedge that it instituted. Back in, when the Indian rupee was
climbing rapidly, Wipro had charged its risk management policy and decided to
hedge a major part of its anticipated dollar revenues for that year. Since then, a
change of Government of India and major changes in global economic environment
had changed the picture dramatically. Over the 6 month period dollar had risen by
6%.

Question:
According to you how Wipro Company has managed the currency risk?

B) As a descriptive example, we chose two Swedish firms, - SKF and Elof Hansson. Both
firms have sufficiently big open foreign currency positions, although they belong to
different industries. According to our prepared questionnaire, which is based on the
previous study, we will ask both firms questions related to our topic along with the
request to provide us with some additional financial data. We are going to interview
the representatives of those companies and analyses the data in order to find out
the way they calculate FEE. We will compare their financial risk management
strategies, operating characteristics, etc. basisng on our theoretical and literature
studies, we will put the firm’s real business transaction into the theoretical
transaction life span and try to find out if, in reality, the companies use the
transaction exposure management as the theory suggests. Finally, we are going to
make observations on the differences between theoretical framework and real life
practice along with our suggestions on the exposure management strategy
improvements.
 DNYANSAGAR INSTITUTE OF MANAGEMENT AND RESEARCH.
MBA-II/SEM-IV

Subject: 409-Fin: Banking Operation-II Code: 409

Faculty Name: Prof. Dr. Varsha Goyal

Important Instructions
Concurrent Evaluation Components

Sr Components Marks
No
A Small Project Reports 10
B Written Home Assignment 10
C Learning Diary 10
D Thematic Presentation 10
E Case let 10
Total 50

A Small Project Reports

Pick an Indian Private Bank of your choice and visit that bank and research on the following
points:
 Banks’ Product
 Operation system of that bank
On the basis of above research, prepare a report which will be containing the following
points:
a. Introduction of Bank

b. Research Objective

c. Research Methodology

d. Data Analysis

e. Findings and Conclusion

B Written Home Assignment

Q.1 Explain the provisions of Banking Regulation Act, 1949.

Q.2 Give the recommendations of Narsimha Committee relating to the Indian Banking
system.
Q. 3. To analyze the performance of “EXIM BANK Ltd”
Q.4. Write Short Notes on (ANY TWO)
(a) NPA
b) NEFT
c) Investment Banking
d) KYC norms

Q. 5. Explain the monitoring of Credit Portfolio.

Q. 6. Explain the impact of Information Technology on Banking,
Q. 7. What are the suggested measures to reduce NPA?
Q. 8. Differentiate between Unit and Branch Banking.
Q. 9. What are the legal provisions related to Banking?
Q. 10. What is the credit creation process of banks?

C Learning Dairy

A) With reference to Yes Bank, do you think that, the central bank has failed to
perform its role to regulate Indian private sector banks? Explain your answer
with suitable facts and figures.

D Thematic Presentation
Prepare the power point presentation on two of the following topics:
1. Statutory Liquidity Ratio
2. Cash Reserve Ratio
3. Repo Rate
4. Asset Liability Management
5. Letter of Credit
6. Deferred Payment
7. Priority Sector Lending
8. Working Capital Gap

*Students are also required to submit the print out of presentation slides (At least.
Submit per topic 10 slides)

E Case let

Explain the case of Punjab National Bank and Nirav Modi under the following points:
1. Introduction of Punjab National Bank
2. Introduction of Nirav Modi
3. Case detail

4. Role of RBI in this case

5. Impact of this case on Indian Economy

Explain the case of PMC Bank Fraud Case are under the followings Points:

1) Details of PMC Bank

2) What happened at PMC Bank?

3) Case for PMC bank

4) Role of RBI in this case
5) Impact of this case on Indian Economy
 DNYANSAGAR INSTITUTE OF MANAGEMENT AND RESEARCH.
MBA-II/SEM-IV

Subject: 410-Fin: Wealth & Portfolio Management Code: 410

Faculty Name: Prof. Pappu Gaikwad

Important Instructions
Concurrent Evaluation Components

Sr Components Marks
No
A Written Home Assignment 10
B Scrap Book 10
C Case Study 10
D Thematic Presentation 10
E Industry Analysis 10
Total 50

A Written Home Assignment

1) In context of CAPM with unlimited borrowing and lending at risk free rate of
interest, explain the meaning of market line.

2) Use the Sharp Index Model to select the best combination of securities for a
portfolio. The risk free rate is 5% and market standard Deviation is 20%.

Security 51 52 53 54 55

Return 12% 15% 10% 16% 8%

Error 20% 15% 12% 24% 22%

Risk 1.5 1.2 1.3 1.4 0.85

3) From the following scenario build an investment strategy for an investor when the
Market is expected to be bullish.

Strike Price Call Premium Put Premium Market Price

200 15.80 5.45 211.20

210 10.55 9.45 210.20

220 6.35 15.15 210.20

4) Suppose two stocks have a correlation +1.0. Can a portfolio of these two stocks reduce risk?
Explain.
5) Why diversification is important, and what form does it take in view of the different needs, age
group, marital status, health and attitudes of the investor?
6) What is an investment decision? What are the approaches to investment decision-making?
7) You are required to calculate Beta factor for Falcon Ltd.

Years Return on Security Falcon Ltd (%) Market (%)

1 13 15
2 14 16
3 15 17
4 13 14
5 12 12

8) Is there a benefit of having lower gap between 'in-sample' variance of portfolio daily returns
and 'out-of-sample' variance of portfolio daily returns? (= better estimates the out-of-sample
variance)

9) How do you approach the selection and implementation of an information system for managing
projects, programs and portfolios in an organization? What are the main criteria for choosing
and implementing a management information system you can recommend?

10) Determine the future goal, which on its ground investment is required.

B Scrap Book
1) “No investment is risk free”
In view of above statement, write the meaning and type of investment risks. Can these risks
be eliminated or minimized?

2) Making money from your favorite hobby, scrapbooking … then this is

going to be the most exciting message you ever read.

C Case Study

A) Students in the course Investments Analysis and Behavior of the Masters of Business
Administration, Montego Bay Cohort were given the task of developing an
investment portfolio for Jamaican $15,000,000.00 based on the information listed
below and report on its performance at the end of twelve (12) weeks over the period
July to September 2008.Investments included Stocks, Foreign Exchange, Treasury
Bills, Mutual Funds and a miscellaneous investment of our choice. Stock
Market: Total of $7,000,000.00 to be invested in six stocks currently traded on the
Jamaican Stock Exchange (JSE) in the following proportions:
STOCK A - $2,500,000.00
STOCK B - $1,600,000.00
STOCK C- $1,000,000.00
STOCK D - $900,000.00
STOCK E - $600,000.00
STOCK F -$400,000.00
TOTAL STOCKS $7,000,000.00
Foreign Exchange: $2,500,000.00Treasury Bills: $2,000,000.00Mutual Funds: $2,000,000.00
Miscellaneous: $1,500,000.00A detailed analysis of the performance of the portfolio is
required for written submission.

A growing, emerging market is always less analyzed but more volatile and thus, more
interesting. Conduct the tests on the Capital Asset Pricing Model (CAPM), to ascertain their
validity, efficiency and efficacy in different markets in explaining asset prices. Such tests can
be either individual in nature wherein any one model should be studied or comparative in
nature where one model can be compared with another. Many studies have also resulted in
the development of new models or extensions to the existing theory. This study should
examine 5 portfolios, covering 20 stocks, over a 5-year period—to verify the efficiency and
efficacy of the model and to find the working of CAPM in the Indian stock market context.
Questions
1. Explain the CAPM model.
2. Explain whether CAPM is a suitable descriptor of asset prices in India or not over the
chosen sample period.

B) Wealth Managing Early in Career

Amy and Steve are both young physicians. Like many couples in their mid-30s, they owned a
home and had recently started a family but had not considered a wealth management
advisor. It wasn't that many years ago that their biggest concerns were getting through
college and medical school. During medical school, they started amassing a considerable
amount of debt and had difficulty saving. As their incomes rose dramatically after residency,
Amy and Steve soon realized that they did not have a plan in place to manage their debt,
save for their children's college educations, and set money aside for their own retirement,
among other things. They couldn't decide how to prioritize these different interests or
where to start. Between their careers, family commitments, and social activities, they
continually put off what seemed to be a daunting and arduous task: how to organize and
plan for their future.

Finally, based on a referral from a trusted friend, they contacted an advisor at McKinley
Carter to review their financial situation.

John and Maryanne are lifelong residents of a small Midwestern town, and have owned a
local business for several years. For as long as they can remember, their focus has been two-
fold: grow their business and raise their two children. Although they have diligently saved
and invested during their lifetime, they are unsure of their ability to replace their income in
retirement. They are asking that all-too-familiar question: How do you know if you have
enough?

While they had worked with advisors in the past, John and Maryanne had not found an
advisor that could coordinate and advise on their various issues. They wanted to sell their
business and retire within the next five years, but weren't sure where to begin.
C) Wealth Managing for Small Business Owners as Retirement Nears

John and Maryanne are lifelong residents of a small Midwestern town, and have owned a
local business for several years. For as long as they can remember, their focus has been two-
 fold: grow their business and raise their two children. Although they have diligently saved
and invested during their lifetime, they are unsure of their ability to replace their income in
retirement. They are asking that all-too-familiar question: How do you know if you have
enough?

While they had worked with advisors in the past, John and Maryanne had not found an
advisor that could coordinate and advise on their various issues. They wanted to sell their
business and retire within the next five years, but weren't sure where to begin.

D Thematic Presentation
Prepare the power point presentation on two of the following topics:

1) Investment and risk management

2) Investment vehicles of wealth management
3) Active v/s Passive Portfolio Management
4) Portfolio Management Plans
5) Portfolio building process

*Students are also required to submit the print out of presentation slides (At least. Submit
per topic 10 slides)

E Industry Analysis

K.S. bhatt holds a well- diversified portfolio of stocks in XYX Group. During the last 5 years
return on these stocks have averaged 20% per year and had a standard deviation of 15%. He
is is satisfied with the yearly availability of his portfolio and would like to reduce the risk
without affecting overall returns. He approaches you for the help in finding an appropriate
diversification medium. After a lengthy review of alternatives you concluded (1) future
average return and volatility return on his current portfolio will be the same as he has
historical expected .(2) To provide quarter degree of diversification in his portfolio ,
investment could be made in stock of the following :

Groups Expected return Correlation of returns Standard

With group XYZ Deviation

ABC 20% +1.0 15%

KLM 20% -1.0 15%

20% +0.0 15%

RST

a) If Bhatt invests 50% of his fund in ABC group and leaves the remainder in XYZ Group,
would this affect his expected returns and risk? Why?
b) What should he do? Indicate precise portfolio weighting.
 DNYANSAGAR INSTITUTE OF MANAGEMENT AND RESEARCH.
MBA-II/SEM-IV

Subject: 414-Fin: Principles of Insurance Code: 414

Faculty Name: Prof. Dr. Varsha Goyal

Important Instructions
Concurrent Evaluation Components

Sr Components Marks
No
A Written Home Assignment 10
B Thematic Presentation 10
C Case Study 10
D Situational Analysis 10
E Small Project 10
Total 50

A Written Home Assignment

Q. 1. Explain that insurance is a very important component of financial planning.

Q. 2. Describe various steps of claim settlement process.
Q. 3. What arrangement do you think would be best to protect the interest of both insured
and insurers with respect to handling consumer complaints? Explain your answer by taking
example of an insurance company.
Q. 4. “Proximate cause is not very essential in case of life insurance contract”. Explain in
detail. And also describe the features of life insurance contract.
Q. 5. Which of the following intermediaries do not require IRDA’s licence/ approval to
operate in India?
Q. 6. As per the Suicide Clause, if the Life-Assured Dies, as a Result of Suicide, After 3 Years
of the Issue of Policy, What Does the Beneficiary Receive as the Claim?
Q. 7. In Order for the Policy to acquire a Guaranteed Surrender-Value (G.S.V.), For How long,
must, the Premiums be paid, as per the Regulations?
Q. 8. What are used in an Insurance-Contract, to limit the Liability of the Insurer, under a
Contract?
Q.9. Who among the Following Individuals, are considered as High-Risk by Insurance
Companies? Choose the Most Appropriate Option.
Q.10. Which Insurance helps to protect the Insured, from the Financial Losses, that would
arise, as a Result of a Sudden Death or Disablement, Due to Accident?

B Thematic Presentation

Prepare the detailed power point presentation on one of the following topics:
1. Underwriting in non-life insurance
 2. Insurance pricing
3. Process of Reinsurance
4. Risk Management
5. IRDA
6. Risk Return Trade off
7. E- commerce in insurance company
8. Profit and loss account of insurance company

*Students are also required to submit the print out of presentation slides (At least. Submit
per topic 10 slides)
C Case Study

1) Raam sing had purchased a bus by taking a loan from Swami Financers. The bus
was being used as a private service vehicle, and not as a public transport one. It
was insured under a comprehensive insurance policy issued by United India
Insurance. The bus met with an accident, for which insurance was claimed. The
insurance company appointed its surveyor, who assessed the loss at Rs 2, 26,500.
However, the company deducted Rs 43,125 from the assessed amount, on the
ground that the driver did not have an endorsement on his license to drive a
transport vehicle. Even this amount was not paid to sing, but was directly paid to
the financer Aggrieved; Sing filed a consumer complaint that ultimately reached
the National Commission. It was held that once a person had a license to drive a
heavy goods carriage vehicle, it would mean that he/she was entitled to drive a
transport vehicle, including a public service vehicle. Accordingly, the insurance
company was directed to pay the balance amount, along with 12 per cent interest
and costs of Rs 5,000 The commission also ruled that the practice adopted by
insurance companies of directly paying to the financer, without informing the
insured or without his consent, cannot be justified. If the insurance policy is taken
in the name of the vehicle purchaser, there is no question of paying the amount
straightaway to the financier
Question: Should an insurance claim be paid to insured or financer?

2) Harpreet Singh Oberoi was working with Mirasu Marketing as a sales

representative. He was covered under a personal accident policy obtained by his
employer through Oriental Insurance Co.

On June 7 2004, Oberoi met with an accident, for which a FIR was registered at
the Jalandhar police station. Oberoi suffered several injuries and was hospitalized
for a week. Following discharge, he continued treatment, but suffered 50%
disability. Oberoi lodged a claim of Rs 1, 85,000 with supporting documents such
as bills, prescription slips, payment receipts etc. But the claim was neither settled
nor rejected, prompting Oberai to file a complaint before the Jalandhar district
forum against the insurance company and his employer.

The employer refuted its liability as the policy was a contract between Oberoi
and Oriental Insurance Co. The employer also questioned the jurisdiction of the
Jalandar forum as Oberoi was working in Mumbai when the accident occurred.
The insurance company stated that it could not decide on the claim as Oberoi
had not submitted all necessary documents. The Forum held the insurance
company liable to pay Rs 1, 85,000, while the employer was asked to pay 9%
interest, Rs 5,000 in compensation and Rs 3,000 toward costs.
 The insurance company appealed to the Punjab State Commission; the employer
did not. The state commission observed that the employer had failed to furnish
relevant documents. It held the insurer and employer jointly and severally liable
to pay Rs 1,85,000.

Meanwhile, Mirasu Marketing amalgamated with Femcare Pharma, and later

with Dabur. The state commission’s order was challenged by Dabur before the
national commission. The national commission observed that two documents not
supplied: Oberoi’s salary certificate and leave sanction order. While these may
have been relevant to compute disability, they were irrelevant for for
reimbursement of medical expenses. All supporting documents had been
submitted to settle the claim.
The commission concluded that the conduct of the insurance firm asking for
these documents for a medical reimbursement claim was unjustified and
amounted to a deficiency in service. The commission further said the contract of
insurance required the insurance company to make payment under the policy, so
the employer could not be saddled with this liability.
Questions
On the basis of above case, on what factors the insurance company should focus
at the time of settlement of claim?

3) When Mr ram has hired a driver, he will therefore have to check whether the
driver has a driving licence. If the driver produces a driving licence which on the
face of it looks genuine, the owner is not expected to find out whether the
licence has in fact been issued by a competent authority or not. The owner
would then take the test of the driver. If he finds that the driver is competent to
drive the vehicle, he will hire the driver. It is found it rather strange
that insurance companies expect owners to make enquiries with RTOs, which are
spread all over the country, whether the driving licence shown to them is valid or
not. Thus where the owner has satisfied himself that the driver has a licence and
is driving competently there would be no breach of Section 149(2)(a)(ii).
The insurance company would not then be above of liability. If it ultimately turns
out that the licence was fake, the insurance company would continue to remain
liable unless they prove that the owner/insured was aware or had noticed that
the licence was fake and still permitted that person to drive. More importantly,
even in such a case the insurance company would remain liable to the innocent
third party, but it may be able to recover from the insured.
Question:
On the above case analysis, whether Mr. Ram would be able to get any claim
from the insurance company?

D Situational Analysis

1) Mrs. Leela Devi who is the wife of late Mr. Kishan who has recently passed away in
major car accident in last week. Late Mr. Kishan had purchased insurance policy of Rs
20, 00,000 sum assured from you’re a private insurance company. The policy period
was 25 years. But he had not paid premium against his policy for last 1 month. He has
 earned bonus of Rs.70, 000 till date. Being a manager of this company, what list of
documents and formalities will you suggest to Mrs. Leela Devi? And what will be the
final amount receivable to him from the insurance company?

2) On Thursday, July 24, 2014, Society Insurance received notice of an incident at a

policyholder pub in south eastern Wisconsin. Since there were both employee injuries
and property damage associated with this incident, a specialist from Society’s workers
compensation claims team along with a dedicated representative from
Society’s property claims team were quickly on the case. Care for the injured
employee was a top priority, as well as getting the pub reopened and back to business.
What type of claim that pub will receive from insurance company?

3) A Society Insurance senior claims adjuster received notice of an incident in Illinois.

An employee of a business insured by Society Insurance was involved in a motor
vehicle accident while in the course of his work on Aug. 31, 2012.

This employee sustained injuries to multiple parts of his body, including his back.
After almost six months of treatment, he required back surgery where vertebrae in
his lower back were fused together. What cost will be included in employee’s claim?

E Small Project

Take a life insurance company of your choice and analyze the life insurance policies of that
company. And on the basis of the above analysis, prepare a report containing the following
points:
1. Introduction of the company
2. Project objectives and research methodology
3. Benefits of the Policy
4. Amount of Sum Assured
5. Amount of premium
(Note: Project Report needs to be written on A4 size paper.)