- JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS ) ENDSemester Examination- APRIL 2013
B.B.M. – IV SEMESTER
BANKING AND INSURANCE
Time: 3Hrs Max marks: 100
Section – A
- Answer ALL the following: (10X2=20)
- Distinguish between pure and speculative risk?
- What is mutilated cheque?
- Explain the different types of insurance intermediaries?
- What are general utility services?
- Define underwriting?
- What is principle of causa proxima?
- What are scheduled banks?
- Explain the monopolistic function of RBI?
- What do you mean by deposit management?
- X and Mr. Y holds joint current account and Mr. X has taken term loan on the same. If Mr. X defaults in payment of amount will the banker get right of lien in such a case? Justify your answer.
SECTION – B
- Answer any FOUR from the following: (4X5=20)
- Ram who has completed PUC and currently pursuing his degree is in need of money to support himself. As he is looking for a part time job guide him to pursue to be an agent for a life insurance company. Enlighten Mr. Ram about the eligibility criteria and procedures
- What do you mean by Riba? Explain the five principles of Islamic banking?
- How do you cross a Cheque? Explain the different types of crossing?
- Since the growing fluctuation in the economic condition giving rise for “too much of money chasing too few goods “ the monetary authority of the country wants to control the situation by guiding the commercial banks on credit control. Explain each of the qualitative techniques used by RBI?
- Case1
Mr. Ranga has taken insurance from Agriculture Insurance Company Limited on his crop (for which there is tremendous demand and increase in price). Which is yet to be harvested. Due to the improper imbalance in the monsoon condition his sources of water is drying up and he is scared of risk beyond expectation due to damage of crops. So he decides to take up another insurance for the same from Agriculture Insurance Company Limited.
Case2
Ms Radha has insured her property, in Lavel road (Bangalore) for Rs 10 Crore from Royal Sundaram General Insurance Company. Due to high risk and inability to cover such risk the Royal Sundaram General Insurance Company has decided to share its risk with Citi Bank Insurance Service.
Based on above 2 cases identify which is double insurance and which one is re-insurance and distinguish between the two.
- Explain the process of underwriting an insurance policy?
SECTION – C
- Answer any three of the following: (3X15=45)
- What do you mean by risk management? Explain the process of risk management?
- Who is an actuary? Briefly explain his duties and eligibility to become an actuary?
- What is insurance? Explain the classification of each insurance policy?
- Define bank? Explain the various function of commercial bank?
- Explain the changing scenario of banking system in India?
SECTION – D
- Compulsory question (1X15=15)
- On Jan 1, 2012, Mr. Vivek an entrepreneur has opened a savings bank account in Vijaya bank and deposited Rs 5, 00,000.
- Further he directed the banker to make some payments such as insurance premium, electricity bill and telephone bill, on monthly basis.
- On Feb 2rd 2012, he wanted to make some investments. So the banker suggested and provided him with detail of some instruments and services that they offer to a premium customer like him
- On March 3rd 2012, Mr. Vivek deposited a sum of 2,00,000 and ask the bank to manage the fund for his specific purpose
- Vivek has kept her property document and jewellary in the safety locker with the bank. Due to the negligence of the banker the valuables were stolen. is the banker liable for such a loss
From the above all cases, identify and explain the relation between the banker and customer.