East West University
Department of Business Administration
FIN – 410, Risk Management and Insurance, Spring – 2009
Course Instructor: Dr. Tanbir Ahmed Chowdhury
Professor & Chairperson, Department of Business Administration
Office Room # Department of Business Administration
7th Floor, DDC Building
Tele Office: 9882308, 8812335, Ext. 244
Class hour:
Section-1, Room # Academic Building MBA Seminar Room
Monday
11.50 – 01.20 p.m.
Wednesday
11.50 – 01.20 p.m
11.00 a.m. – 11.30 a.m.,
11.00 a.m. – 11.30a.m,
11.00 a.m. - 11.30 a.m,
Wednesday 11.00 a.m. – 11.30 a.m.,
Thursday 12.00 a.m. – 04.-00 p.m
Office hour: Sunday
Monday
Tuesday
1.30 p.m. - 3.00 p.m.
2.00 p.m. – 5.30 p.m.
2.00. p.m. - 3.00 p.m.
2.30 p.m. - 5.30 p.m.
COURSE OBJECTIVE:
The course is designed to orient students with tools and techniques of Risk Management
and Insurance. Insurance has become indispensable for person, business and international
trade. This course will acquaint students with the essential details of risk and its
management, insurance contracts and insurance markets. Hence, this course will enhance
the ability of students to think critically and analytically and solve problems in order to
better prepare them to confront the myriad opportunities and problems that confront
business managers and individuals.
Required Text
1.Risk Management and Insurance, Harrington Niehaus, McGraw-Hill International
Editions, 1999.
2. Elements of Insurance, The CII Tuition Service, The Chartered Insurance Institute,
Williemer Brothers Ltd., United Kingdom, Revised Edition,2002.
ATTENDANCE: Students are expected to attend all classes and prepare home
assignments on due time. Students' participation will be strongly encouraged. If
any student misses more than three classes, he/she is required to take course
teacher's permission to attend the subsequent classes provided that the student had
valid reason for missing the class.
Penalty for Cheating by Students in Examinations
As per East West University rules “There is zero tolerance for cheating at EWU. Students
caught with cheat sheets in their possession, whether used or not used, & / or copying
from cheat sheets, writing on the palm of hand, back of calculators, chairs or nearby
walls, etc. would be treated as cheating in the exam hall. The only penalty for cheating in
the exam hall is expulsion from EWU."
Course Contents: This course will cover the following topics:
Scope of Insurance
 Marine Insurance
 Classification of Marine Insurance
 Types of Marine Policies
 Fire Insurance
 Types of Fire Insurance


Accident Insurance
 Theft, Fidelity Guarantee, Glass, Live Stock, Credit, Motor.
Engineering Insurance
Insurance of the Person
 Personal accident and sickness insurance
 Ordinary Life Assurance- Term, Whole life, Endowment, Annuity.
 Other policies based on Term, Whole life, Endowment, Annuity.
Risk and its Management
 Risk
 Different Meanings of Risk
 Comparison of Pure Risk and its Management with other types of Risk.
 Risk Management
 The Risk Management Process
 Losses from Pure Risk
 Risk Management Methods
Risk Measurement and Risk Pooling
 The Pervasiveness of Risk
 Basic Concepts from Probability and Statistics
 Random Variables and probability Distributions
 Characteristics of Probability Distributions
 Expected Value
 Variance and Standard Deviation
 Sample Mean and Sample Standard Deviation

Risk Reduction through Pooling Independent Looses
Elements of Insurance:
Principles Insurable Interest
 Law of Contract
 Subject Matter of Insurance Contracts
 Essential features of insurable interest
 Application of Insurable Interest to different types of insurance
Principles of Indemnity, Subrogation and Contribution
 General features of Indemnity
 Distinction between Insurance and Wagering
 Indemnity applied to various branches of insurance
Subrogation
 How Subrogation arises
 When Subrogation arises
 Extent of Subrogation
 Ex gratia payments
Principles of Utmost Good Faith
 Duty of disclosure
 Material facts
 Representations
 Breaches of Utmost Good Faith
 Void
 Voidable and unenforceable contracts
Course Evaluation
The distribution of total marks of 100 will be as follows:
1.Quizzes
15 percent
2. Assignments
10 percent
3. Class Performance
10 percent
4. Fist Mid-term Examination
20 percent
5. Second Mid-term Examination
20 percent
6. Final Examination
25 percent
Total
100 percent
Grading Policy:
Guideline for converting numerical scores to letter grades:
Numerical Scores (in %)
Letter Grades
97 - 100
A+
90 - below 97
A
87 - below 90
A-
83 - below 87
B+
80 - below 83
B
77 - below 80
B-
73 - below 77
C+
70 - below 73
C
67 - below 70
C-
63 - below 67
D+
60 - below 63
D
- below 60
F
Examination Particulars
Date
Examination
February 18, 2009.
First Mid-Term
March 18, 2009.
Second Mid-Term
April 29, 2009
Final