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CHRIS T (DEEMED TO BE UNIVERSITY), BANG ALOR E
DEPARTMENT OF COMMERCE
END SEMESTER EXAMINATION - MAY 2024
UG - IV SEMESTER

Programme Name: BCom (Honours) Mu. Marks: 100

Course Name: COH433 Time: 3 Hours
Coone Code: Practices or Banking and Insurance
General Instructions
• All rough work should be done in the answer script. Do not write or scribble in the question
paper except your register number.
• Verify the Course code/ Course title & number of pages of questions in the question paper.
• Make sure your mobile phone is switched off and placed at the designated place in the hall.
• Malpractices will be viewed very seriously.
• Answers should be written on both sides of the paper in the answer booklet. No sheets should
be detached from the answer booklet.
• Answers without the question numbers clearly indicated will not be valued. No page should be
left blank in the middle of the answer booklet.

Coune Outcomes (COs): The students will be able to

CO 1: Underst and the origin and growth of banking in India

CO2: Distinguish the various negotiable instruments
CO3: Analyse the recent technological developments in Banking.
CO4: Appraise the significance of Principles of Insuranc e
COS: Evaluat e the various types of Insuranc e products
CO6: Summar ize about the regulation and legal framewo rk of the Indian insuranc e
system.

SECTION A
Answer ALL questions SX2 marks =10 Marks

. No uestions co RBT
How do insurance companies calculate premiums for any property's 4 L3
1 .
insurance 2
Where do Bankers et their funds from to ive loans to 1 L2
2
3 Give an instance of fraud in Life Insurance 2 2 L4
4 What does Contribution mean 2 4 L3
5 How can Banlc and Insurance com anies hel Traders. 2 5 L2
L I Gh,._

SECTIONB
Answer ALL questions 7XS marks -35 Marks

. No uestions CO RBT
6 What is an NPA and how is it detrimental to a Bank? 2 L3
5
 If a debtor does not pay back the loan to the Banlc, a Bank cannot
initiate any random action against the bank. There are rules and 2 L3
7
regulations that the Bank must abide by. Comment
[S]
Write about the Ftmctions of RBI 1 L2
8
(51
In all ways RBI acts as financial guardian of the nation . Justify. 3 L4
9
[S]
Write about some of the Financial Services offered by Banks. 4 L3
10
fSl
a) Prove that - Insurable interest gets manifested differently in
Life and in General Insurance. [5] 6 L2
11
or
b) Subrogation can put an insurer in a de~ loss. Justify r51
a) The existence of Morale Hazards and the observance of
principle of mitigation of loss, mean the same. Comment [SJ s IA
12
or
. b) Write a Shortnote on Marine Insurance. [S]

SECTIONC
Answer ALL questions 4Xl0 marks =40 Marks

O.No Ouestions co RBT

a) " Like locking a treasure chest with a golden key and burying it
deep within a vault. You make a solemn pact with time, ·entrusting
your wealth to grow undisturbed until the appointed hour when
the chest can be unearthed, revealing its glittering riches." -
Unsnarl the Metaphor , contextualize the accollllt type and create
another metaphor for another type of account (You cannot use the
13 3 IA
same type of account given in the question).
Or

b) A Negotiable instrument is known to be 'Negotiable' for a reason. •

Justify this statement using various instruments.

a) Create a fictious case where a check is dishonoured due to

Insufficent funds and due to Wrong Signature.

Or
b) During the application process, John fills out the forms, providing
infonnation about his heal~ lifestyle, and medical history.
14 However, there's one critical detail he fails to disclose - he 1 L2
recently visited a doctor for chest pains, but the doctor assured him
it was likely due to stress and not a serious medical condition. John
decides not to ~ention ~is v_isit on his insurance application,
thinking it's not relevant since at wasn't a significant health issue.
BrightLife Insmance, relying on John's provided information,
ap~oves his application and issues him a life insurance policy.
 Several months later, tragically, John suffers a heart attack and
passes away.

Which principle do you think the case gives a hint about. ?

Complete the case and bring to the light the principle and give a
justitication . .

Silverton Corporation's relentless focus on profit maximization at the

expense of employee well-being has created a pervasive morale hazard
within the organization. Employees are subjected to long working
hours, unrealistic targets, and a lack of job security. The toxic work
environment, coupled with a culture of fear and intimidation, leads to
15 3 L2
high levels of stress, burnout, and low morale among workers. As a
result, productivity suffers, turnover rates are high, and employee
engagement is at an all-time low.
-- - ---.....
Which of the-bu.ardsican you relate this case to? (10]
16 Take a case and demonstrate Causa Proxirna in detail. r10] 4 L2

SECTIOND
Case Study - Compulsory Question IXIS maria= IS Marla

O.No Ouestions co RBT

17 Case Study flSl 3 L4
Q.1 Mr. M was a 20-year-old Undergraduate student, living at home with
his parents and working part-time at a local supermarket. He applied
successfully for a credit card and was given a credit facility of $2,000. Mr.
M started using the card for on-line gambling and quickly spent up to his
credit limit. He soon found it impossible to reduce the size of his debt on
the card. He then complained to the card issuer, saying it should take full
responsibility for the debt. He said it had acted irresponsibly by giving him
a credit limit so large that he had been tempted to pursue on-line gambling.
i) Is the complaint ofMr.M valid, explain.
ii) Has the bank acted irresponsible in giving credit card to Mr.M, explain.
Q,.2) Mr.Shyam Patel took a life insurance policy from an insurance
company on his life. While making the proposal of insurance, Mr.Shyam
in reply to a query asking whether all previous proposal on his life were
accepted by the insurers at ordinary rates, but omitted to disclose that his
proposal for insurance was declined by two other insurance companies.
Mr.Shyam dies and his legal representative claimed the insurance money.
Is the insurance company liable to pay? How will you arrive at the
decision?

Revised Bloom's Taxonom T Levels :

Lt - Rememberin L2 - Understandin L3-A
L4 - Anal • LS - Evaluatin L6-C