International Diploma in Insurance

Insurance Institute of East Africa
Blended study mode
Brunei House, 3rd Floor I Witu Road off Lusaka Road P.O. Box 16481 - 00100 Nairobi, Kenya
1 year
Jun 03 - Aug 13 2020

Course Description

This Program explains and teaches about the purposes, principles and types of insurance and contracts, and the functioning of insurance businesses and the work of insurance practitioners.
Starting with an explanation of how every person and organization is exposed to risks which can result in losses, the interesting and informative Program shows how insurance aims to minimise and manage the effects of risks, and transfer responsibility for potential losses to insurers.  This Program has wide-ranging application for business people, existing and aspiring insurance practitioners; it deals with modern insurance practice, the principles on which it is based, the main classes of insurance business, insurance contracts, documentation, policies and claims.  The Program also deals with insurance company structure and organisation, and how these companies need to be run profitably and be well organised.

Mode of Study: Distance Learning

Course Intake: Ongoing!

Course Outline

  • Module – 1 Nature and Purpose of Insurance
  • Risk:
  • what risk might involve
  • losses from risks
  • increased risks
  • what insurance seeks to achieve
  • the mathematical law of average
  • the nature of risk
  • types of risks:
  • fundamental risks
  • particular risks
  • pure risks
  • speculative risks
  • risk and insurance:
  • controlling the financial aspects of the unknown
  • reducing risks
  • problems with moral hazard
  • The main function of insurance:
  • compensation or indemnity:
  • forms which indemnity may take
  • How insurance differs from wagers:
  • the legal position
  • insurable interest
  • utmost good faith
  • indemnity
  • likelihood of the event occurring
  • Insurable risks:
  • examples
  • tests of insurability
  • Uninsured risks:
  • risks which cannot be insured, examples
  • why some risks are not insured
  • Means of reducing risks:
  • risk control methods
  • Subsidiary benefits of insurance:
  • reducing fear of the future
  • encouraging confidence to undertake new ventures
  • assisting people to save
  • investments
  • reducing demands on social services
  • Insurance and the law:
  • practical example
  • Contracts:
  • definition of a contract
  • agreements which are not contracts
  • the six essentials for a genuine contract:
  • intention that it is to be legally binding
  • unrevoked offer
  • unqualified acceptance
  • consideration
  • legality
  • capacity of the parties
  • Insurance contracts

Module 2 - Insurable Interest And Utmost Good Faith

  • How insurance developed
  • Classes of insurance business
  • Categorisation by object or event
  • Subject-matter:
  • what it may be in insurance
  • examples in the classes of insurance
  • Insurable interest:
  • explanation and definition
  • the legal position
  • requirements for valid insurable interest
  • those who can have insurable interest
  • those with limited insurable interest
  • those who have no insurable interest
  • when insurable interest is necessary:
  • the Life Assurance Act, 1774
  • examples of insurable interest
  • insurable interest and life insurance:
  • insurable interests allowed in law
  • timing of insurable interest:
  • time of purchase
  • time of loss
  • assignment of insurable interest:
  • assignment of the proceeds of a policy
  • assignment of the policy itself
  • transfer and resale of life insurance
  • transfer and resale of non-life insurance:
  • Utmost good faith:
  • what is involved
  • legal obligations
  • onus placed on the insurers and the proposer
  • material facts:
  • definition
  • legal rulings
  • facts which are material:
  • examples in classes of insurance
  • facts which need not be disclosed
  • timing of utmost good faith
  • facts which must be disclosed
  • Void and voidable contracts:
  • nondisclosure
  • concealment
  • representations
  • fraudulent misrepresentation
  • innocent misrepresentation
  • warranties:
  • express warranties
  • implied warranties
  • declarations
  • differences between representations and warranties
  • contemporary thinking on disclosure:
  • unfair contract terms
  • statements of practice

Module 3 – Indemnity

  • The contract of indemnity:
  • the purpose of indemnity
  • Forms of indemnity:
  • cash payments
  • replacement
  • repair
  • reinstatement
  • Value at the time of loss
  • Applications of the principal of indemnity:
  • variations between classes of insurance
  • total loss
  • partial loss:
  • examples
  • Agreed value or valued policies
  • Replacement or reinstatement policies
  • Indemnity for partial losses:
  • difficulties in assessing value
  • betterment
  • large partial losses
  • cover after partial losses
  • modifications of indemnity:
  • contract conditions
  • underinsurance:
  • example
  • excess
  • Subrogation:
  • definition and purpose
  • rights in damaged property:
  • practical example
  • effects of the doctrine of subrogation
  • subrogation in practice
  • timing of subrogation
  • two or more policies on the same subject-matter
  • intercompany agreements:
  • knock for knock
  • third party sharing
  • waiver of subrogation
  • Contribution:
  • the same risk insured under two or more policies:
  • practical examples
  • the doctrine of contribution
  • conditions for the application of contribution:
  • differences between subrogation and contribution
  • the need for common interest
  • timing of contribution
  • avoidance of contribution rights
  • non-contribution clause
  • more specific clauses
  • specific market agreements
Module 4 - Proximate Cause, Physical and Moral Hazard

  • Types of perils:
  • insured perils
  • excepted perils
  • uninsured perils
  • Proximate cause:
  • definition
  • a “train” or “chain” of related causes, factors, or events
  • concurrent causes
  • non-concurrent unrelated causes
  • meanings of:
  • proximate
  • remote
  • practical examples
  • general rules for applying proximate cause
  • conditions for proximate cause
  • application of proximate cause to claims
  • consequential loss:
  • damage caused by thieves
  • damaged cause by fire-fighting
  • legal costs
  • Moral hazard:
  • fraud
  • carelessness
  • circumstances
  • steps to be taken to reduce bad moral hazard
  • Physical hazard:
  • examples in different classes of business
  • steps which can be taken to reduce bad physical hazard

Module 5 - Proposal Forms and Policies

  • Buyers and sellers of insurance:
  • proposers and insurers
  • Methods of selling insurance
  • Stages in buying insurance
  • Proposal forms:
  • the questionnaire
  • their functions:
  • to obtain information
  • to make a legal offer
  • to elicit a quotation
  • to describe the cover available
  • advertising/publicity
  • to establish a warranty
  • the declaration:
  • specimen
  • layout and contents:
  • information required:
  • name, address, occupation, age
  • insurance and claims history
  • sum insured
  • medical history
  • use of postal codes in claims analysis and statistics
  • When proposal forms are not used in different classes of insurance
  • Offer and acceptance:
  • documents in which acceptance might be shown
  • The premium:
  • when premiums are paid
  • deposits
  • Proof of insurance cover:
  • cover notes:
  • when and why they may be issued
  • how they may be issued
  • claims whilst they are valid
  • certificates of insurance:
  • when and why they may be issued
  • how they differ from cover notes
  • employers liability insurance certificates:
  • information they contain
  • motor insurance certificates:
  • information they may contain
  • green cards and bail bonds
  • Policies:what they are ,their sections and what those contain:
  • the preamble
  • the operative clause
  • exceptions and provisos
  • the schedule
  • the policy conditions
  • the attestation clause
  • endorsements:
  • what they are
  • why they are used
  • legal interpretation of policies:
  • meanings of the words
  • typed or handwritten words
  • benefits of reasonable doubt
  • general and particular statements

Module 6 - Premiums, Renewals and Claims

  • Underwriting:
  • underwriting factors
  • average claims experience
  • effects of underwriting factors
  • proposer’s characteristics
  • premium versus claims value
  • Premiums:
  • rating the risk
  • life insurance premiums:
  • why they can be rated accurately
  • non-life insurance premiums:
  • bases of ratings
  • Reserves:
  • why they need to be established and built up:
  • higher than anticipated losses
  • unearned income
  • unpaid claims
  • one class of business must not subsidise another
  • Renewals:
  • meaning and process
  • no obligation to renew, or on the same terms
  • considerations of the insured
  • considerations of the insurers
  • utmost good faith
  • reasons why terms may be varied
  • policies under which insurers may not come “off risk”
  • renewal procedure:
  • the renewal notice:
  • its purpose
  • its contents:
  • renewal premium required:
  • alternative values and premiums
  • days of grace:
  • when they may be allowed
  • claims arising during them
  • when renewal premiums are not paid:
  • lapsing the policy
  • reviving policies
  • Return of premiums:
  • no general entitlement
  • when total refunds might be made
  • when partial refunds might be made
  • No-claim bonuses:
  • why they are offered
  • transfers between insurers
  • Excess:
  • what is involved
  • advantages to insurers
  • Surrender value
  • Paid-up policies
  • Delay of premium payments
  • Claims:
  • handling of claims by insurers
  • conditions for claims
  • notification to the insurers
  • proof of loss
  • claims forms:
  • their uses
  • information required
  • methods by which proof of loss may be provided
  • claims settlement
  • ex gratia payments
  • reasons why claims may fail:
  • invalid contract
  • policy exclusions
  • proximate cause:
  • contract wording which overrules general application
  • the amount of the claim:
  • considerations
  • disputes over claims:
  • liability
  • quantum
  • negotiation and compromise, litigation
  • arbitration:
  • what is involved
  • why insurers prefer arbitration to litigation
  • Average
  • different meanings in classes of insurance
  • the pro rata condition
  • the special condition
  • two conditions
  • Who pays the claim:
  • underinsurance or partial insurance
  • more than one insurer involved:
  • possible complications
  • Recipients of claim payments:
  • the insured
  • other parties
  • Sympathetic treatment of claims

Module 7 - Transportation Insurance
      Marine Insurance:
  • the background
  • hull insurance
  • cargo insurance
  • marine liability damage
  • modern developments and trends
  • time policies
  • voyage policies
  • building risk policies
  • floating policies
  • Aviation Insurance:
  • extent of cover
  • aviation liability insurance:
  • injured passengers
  • non-passenger third parties
  • aircraft manufacturers
  • airport owners and operators
  • comprehensive policies
  • personal accident policies
  • cargo policies
  • loss of service policies
  • airport liability policies
  • product liability policies

  • Transit Insurance:
  • overland transport
  • liability of hired carriers
  • floating policies

  • Motor Insurance:
  • Road Traffic Acts:
  • types of vehicle used on the roads
  • types of policies:
  • third party only
  • third party, fire and theft
  • comprehensive act only
  • motor cycle policies
  • commercial vehicles policies
  • fleet policies and premiums
  • increased premiums
  • excesses
  • no-claim bonuses
  • rebates

Module 8 - Property, Accident, Pecuniary and Liability Insurances
      Property Insurance:
  • the Great Fire of London:
  • developments thereafter
  • definition of “fire"
  • the standard fire policy:
  • insured perils:
  • fire, lightning, explosion
  • exclusions
  • additional special perils which can be covered
  • combined or comprehensive policies
  • period of cover
  • inflation and property insurance:
  • indexing schemes
  • non-private property
  • household comprehensive policies:
  • definitions of “buildings” and “contents”
  • personal possessions
  • new for old policies
  • all-risks household policies:
  • scope of cover
  • commercial theft insurance:
  • commercial or business combined policies:
  • scope of cover
  • office combined policies:
  • scope of cover
  • stock or inventory policies:
  • valuing “stock at risk
  • business loss of profits policies:
  • scope of cover available
  • rent policies:
  • who may insure
  • excesses
  • Accident Insurance:
  • overlap of fire and accident policies
  • industrial all-risks policies:
  • scope of cover
  • contractors all-risk policies:
  • scope of cover
  • theft or burglary policies:
  • scope of cover
  • glass policies
  • money policies
  • goods in transit policies
  • contract policies
  • rainfall and hail policies
  • licence policies
  • caravan policies
  • small/pleasure boat policies
  • travel insurance:
  • scope of cover
  • single trip policies and annual policies
  • sports insurances:
  • scope of cover
  • livestock insurances
  • pet insurances
  • engineering insurance
  • inspections
  • scope of cover:
  • extraneous perils
  • computer insurances:
  • scope of cover
  • Pecuniary Insurances:
  • fidelity guarantee or suretyship:
  • commercial guarantees
  • court bonds
  • government bonds
  • legal expenses policies
  • credit policies
  • business interruption policies:
  • scope of cover
  • mortgage indemnity insurance:
  • scope of cover

  • Liability Insurances:
  • liabilities arising from:
  • negligence
  • nuisance
  • trespass
  • strict liabilities
  • statutory liabilities
  • contractual liabilities
  • employers liability insurance:
  • compulsory in many countries
  • scope of cover
  • public liability insurance:
  • scope of the wide variety of policies available

Module 9 - Insurances of the Person
  • Income, expenditure, wealth and purchasing power
  • How the need for personal insurances can arise
  • Social security or national insurance:
  • common state benefits:
  • unemployment
  • sick pay and sickness/health care
  • disablement and disability
  • maternity leave
  • retirement pension

  • Personal accident and sickness insurance:
  • scope of cover:
  • the policy schedule
  • stand-alone policies
  • specified benefits:
  • how and when they might be paid
  • deferred periods
  • exclusions from policy cover
  • Permanent health insurance (PHI):
  • scope of cover
  • the long-term liability
  • level premiums
  • policy exclusions
  • specified benefits:
  • how and when they might be paid
  • deferred periods
  • Long-term care insurance:
  • scope of cover

  • Private medical/health care insurance:
  • scope of cover policy exclusions
  • factors which influence premiums quoted excesses
  • Group insurance schemes:
  • employees personal accident schemes
  • employees personal accident and sickness schemes
  • schemes for clubs and other organizations
  • How personal insurances may be affected by:
  • a person’s occupation:
  • hazards associated with different occupations
  • a person’s age:
  • risk exposures at different ages
  • a person’s family circumstances:
  • number and ages of dependants
  • a person’s sex:
  • reasons why women’s PHI premiums may be higher
  • a person’s health and medical history:
  • factors which influence insurers
  • Holiday travel insurance
  • Business travel insurance
  • Sports insurance
  • Debt repayment insurance
  • Mortgage protection payment insurance

  • Life Insurance:
  • special features
  • types of life policies and scope of cover:
  • term policies
  • whole life policies
  • endowment policies
  • with profits policies
  • unit-linked endowment policies
  • flexible endowment policies
  • guaranteed insurability policies
  • unit-linked whole life policies
  • specialised life policies
  • industrial life insurance:
  • how it differs from ordinary life insurance
  • considerations in effecting life insurance:
  • family protection
  • educational fees protection
  • debt and mortgage protection
  • endowment house-purchase policies
  • sole business owner protection
  • key-personnel protection
  • providing an inheritance
  • savings for the future
  • Pensions:
  • providing an income on retirement
  • state retirement pensions
  • occupational pension schemes
  • personal pension plans
  • Annuities:
  • types of annuities
  • Tontines and capital redemption policies

Module 10 - The Insurance Market
      Composition of the insurance market
  • Buyers of insurance:
  • personal and business buyers
  • Sellers of Insurance:
  • Lloyds underwriters:
  • the background
  • the Corporation of Lloyd’s
  • the Lloyd’s Acts
  • underwriting members
  • names
  • syndicates
  • Lloyd’s brokers
  • stages in placing a risk at Lloyd’s
  • shipping intelligence:
  • Lloyd’s agents and sub-agents
  • publications:
  • Lloyd’s list
  • Insurance companies:
  • limited liability companies:
  • the meaning of limited liability
  • mutual companies
  • captive insurance companies
  • bank assurance
  • Mutual indemnity associations
  • Collecting friendly societies
  • Tariff and non-tariff insurers

  • Intermediaries - middlemen:
  • insurance agents:
  • Law of Agency
  • types of agents:
  • cash, credit, bulk business
  • commission
  • insurance brokers:
  • professional conduct and expertise
  • brokerage
  • differences between agents and brokers
  • tour operators and travel agents
  • bank building societies and other lenders
  • large retailers
  • Direct selling or writing:
  • increasing use of telesales and the Internet
  • standardised cover
  • reductions in insurers’ costs
  • savings on commission and brokerage
  • reductions in premiums
  • convenience for buyers
  • Third party administrators
  • Reinsurance:
  • the necessity for reinsurance
  • methods of reinsuring:
  • faculative reinsurance
  • treaty reinsurance:
  • fixed share/quota treaties
  • surplus treaties
  • excess of loss treaties
  • excess of loss ratio treaties
  • reinsurance pools
Module 11 - Organisation & Management of Insurance Companies
  • Centralised organisations:
  • advantages and disadvantages
  • Decentralised organisations:
  • advantages and disadvantages
  • Regional or zonal organisations
  • Semi-autonomous branches
  • Branches and claims
  • Executives of insurance companies:
  • the board of directors:
  • composition
  • duties and responsibilities
  • managing director
  • general manager
  • heads of departments
  • executive directors
  • non-executive directors
  • the chairman
  • company secretary
  • agency manager
  • marketing manager
  • investment and estates manager
  • personnel and training:
  • the importance of training
  • underwriting executives
  • Organization charts:
  • what they show
  • organisation by function
  • organisation by division
  • Branch staff
  • Specialist staff
  • Insurance funds:
  • the meaning of “funds” in insurance
  • types of funds
  • Insurance reserves:
  • reasons why different reserves must be build up
  • Investment of insurance company funds:
  • aims of the investment policy:
  • considerations in non-life business
  • considerations in long-term business
  • Insurance and the economy:
  • how insurance funds can assist a country’s economy
  • ways in which insurance funds can aid a country’s development
  • insurance and the balance of payments:
  • visible and invisible imports and exports
  • possible positive and negative affects of insurance
Module 12 - Supervision and Regulation of Insurance
  • The “promissory” nature of insurance:
  • insurance as an intangible product
  • the effects of insolvency of insurers on:
  • policyholders
  • third parties
  • The need for regulation
  • consumer protection:
  • areas of concentration:
  • financial standing and stability of insurers
  • buyers’ understanding of what they are buying
  • availability of insurance when and where needed
  • national and economic interests
  • aleatory nature of insurance
  • Development of the regulation of insurance:
  • self-regulation
  • acts and statutes
  • EU Directives
  • authorisation of insurers:
  • requirements for authorisation
  • supervision of authorised insurers
  • solvency margins:
  • premium basis of calculation
  • claims basis of calculation
  • minimum guarantee funds
  • examples of legislation enacted with regard to:
  • policyholders protection
  • insurance brokers
  • Lloyd’s insurance brokers
  • financial services
  • insurance standards
  • the financial services authority
  • insurance ombudsman schemes:
  • the role of ombudsmen
  • Conclusion:the continuing evolution of regulation and supervision

Price: KES 91,700

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