Banking and insurance - Law and Practice

Level of Knowledge : Working knowledge.

Objective . . .

To provide good understanding of the role and working of banking, insurance and risk management.

Detailed Contents . . .

Part A: Banking Law and Practice [50 Marks]

1. Introduction to banking

   Historical perspective; emergence and importance of commercial banking; an overview of development in banking since independence.

2. Relationship between banker and customer

   legal framework – corporate banking, loan documentation.

3. Law and procedure governing banking instruments

   cheque, bill of exchange, letter of credit, etc.

ca,icwa,cs,cima,icma,acca,cpa,accounting,profession

4. Management of assets

   liabilities in commercial bank.

5. Lending policies

   Risk and profitability planning.

6. Development banking

   Development banking as distinguished from commercial banking; growth of development banking; role of development banks in economic development.
7. Reserve Bank of India and its control on commercial banks; impact of RBI’s policies on operations of commercial banks; NABARD, NHB.

8. Law relating to Banking Regulation; bankers’ book evidence; recovery of debts due to banks and financial institutions.

9. Banking sector reforms in India - an overview; cooperative banks; nationalised banks; private sector banks; interna-tional banking – foreign banks, off-shore banking; recent developments in banking sector.

Part B: Insurance Law and Practice [50 Marks]

1. Definition of risk and uncertainty; classification of risk; sources of risk - external and internal.

2. Insurance

   Meaning, nature and significance; essential requirements and principles of risk insurance; re-insurance; nationalisation of insurance business in India; Insurance Regulatory Development Authority Act.

3. Life insurance

   law relating to Life Insurance; general principles of life insurance contract; proposals and policy; assignment and nomination; title and claims; concept of trusts in life policy; Life Insurance Corporation - role and func-tions.

4. General insurance

   law relating to general insurance; different types of general insurance; general insurance and life insurance; nature of fire insurance; various types of fire policy; subrogation; double insurance; contribution; proximate cause; claims and recovery.

5. Accident and motor insurance

   Nature, disclosure, terms and conditions; claims and recovery; third party insurance; compulsory motor vehicle insurance; accident insurance.

6. Deposit and credit insurance

   nature, terms and conditions, claim, recovery, etc; public liability insurance; emergency risk insurance.
7. Structure, power and function of General Insurance Corporation of India; Deposit Insurance and Credit Guarantee Corporation; Claims Tribunal.

8. Marine insurance

   law relating to marine insurance; scope and nature; types of policy; insurable interest; disclo-sure and representation; insured perils; proximity cause; voyage; warranties; measurement of subrogation; contribution; under insurance.

9. Risk management

   nature, risk analysis, planning, control and transfer of risk; administration of company’s properties and provision of adequate security arrangements.

10. Insurance surveyorship

    Appointment, legal provisions and licensing, functions.

11. Company Secretary vis-a-vis insurance and risk management; recent developments inthe insurance sector.

Readings

ca,icwa,cs,cima,icma,acca,cpa,accounting,profession

• Orient law House, New Delhi
  1. Banking Law & Practice
• Universal Law Publishers, Delhi
  1. Banking Law in Theory & Practice
     • S.N Gupta
• Bharat Law House, New Delhi.
  1. Company Law Digest
     • Sandeep Bhalla
  2. Law relating to insider trading
     • K.R. Chandratre
  3. Corporate Law & Practice
     • A.K Majumadar & G.K Kapoor
• Eastern Law House, Kolkata
  1. Corporate Law
     • B.K Sen Gupta

References

• ???
  1. Corporate Law ready Reckoner
     • R. Suryanarayanan
• Stevens & Sons Ltd.
  1. Corporate Law
     • Palmer
  2. Principles of Modern Company Law
     • L.C.B. Gower
• Butterwoths & Company (Publications) Ltd; London
  1. Corporate Law
     • Pennigton
• Taxman Publication, Delhi
  1. Circulars & Clarifications on Company Law
     • Bhargava & Bhargava

Journals

• ICSI, New Delhi
  1. Chartered Secretary
  2. Student Company Secretary
• L.M Sharma, Post Box No. 2693, New Delhi – 110005.
  1. Company Law Journal
• Corporate Law Advisers, Post Bag No.3, Vasant Vihar, New Delhi.
  1. Corporate Law Advisers

Other Relevant Books

Author Credit : Team Future Accountant