Banking, Finance & Insurance: Admission 2024, Fees, Syllabus, Entrance Exam, Top Colleges, Career Scope

Insurance is a way to secure your future financially in case of any financial, accidental or medical emergencies. The aim is to recover as much amount as possible in case you have an emergency and you have to pay out of your pocket. This ensures that your savings and investments remain safe for future purposes. 

The concept of insurance dates back to ancient times. Modern insurance began around the 17th century in Great Britain. Lloyd’s of London was the international insurance market for Europe. By 1870, British Insurance Act was enacted in India.  

The insurance industry in India is seeing massive growth currently, particularly, the life insurance sector. This branch of insurance is expected to grow at 5.3% CAGR from 2019 to 2023. Other branches including the general and health insurance market for private companies rose to 48.03% in the fiscal year, 2020 from 47.97% in the financial year, 2019. 

What is Insurance?

Insurance provides protection against financial loss in case something unfavourable happens to you. This can be related to medical emergencies, vehicle theft, property damage and even death. It is a written contract between the insurance company and policy holder. Through this legal contract, the policy holder gets privileges in case of such emergency. 

As per this agreement, the insurer agrees to cover any financial loss for the policy holder. The insurer provides funds based on the loss or risk that is accidental or above the control of the insured. While buying insurance policy, you must be aware of certain things. These include insurance types, insurance coverage, terms and conditions, premium payment schedule, etc.

Types of Insurance

Based on your requirements, you can opt for multiple types of insurance:

Health Insurance

Health insurance is available in various forms, including HMO, PPO, EPO, and POS plans, each with unique network and payment rules. These plans often cover mental health and rehabilitation services. Wellness programs may also be part of the package.

Life Insurance

Term life insurance is cost-effective but doesn't accumulate value. In contrast, whole life insurance costs more but builds cash value. Universal life insurance combines flexible premiums with investment opportunities. It's also used for estate planning.

Auto Insurance

Coverage for uninsured/underinsured motorists acts as a safeguard against inadequately insured drivers. Personal injury protection pays medical bills regardless of who's at fault. Factors like driving record, vehicle type, and usage influence premiums. Safe drivers may receive discounts.

Auto Insurance

Policies for property insurance may include coverage for valuables such as artwork and jewelry. If your home is uninhabitable after damage, loss of use coverage helps. Policies may pay out the actual cash value or the replacement cost. Deductibles and limits apply.

Liability Insurance

Public liability insurance handles claims of injury or damage from the public. Employers' liability insurance, often compulsory, covers workplace injuries. Insurance for directors and officers defends against claims related to governance.

Disability Insurance

Disability insurance might have an initial waiting period. 'Own-occupation' policies cover job-specific disabilities, while 'any-occupation' policies are more general. Benefits typically reflect a portion of the insured's usual income.

Travel Insurance

Travel insurance packages may offer round-the-clock emergency assistance. They cover interruptions, baggage issues, and delays. 'Cancel for Any Reason' options are available. Policies can be bought for single trips or yearly.

Business Insurance

Errors and omissions insurance is for professional service errors. Product liability is essential for manufacturers and sellers. Cyber liability insurance guards against online threats. Specialized policies, like medical malpractice, cater to specific sectors.

Long-Term Care Insurance

This insurance type can include coverage for day care for adults and Alzheimer's care. The duration of benefits varies. To protect against inflation, some policies include cost-of-living adjustments. Early purchase typically means lower premiums.

Credit Insurance

Trade credit insurance secures suppliers from defaults in business transactions. Credit disability insurance takes over loan payments during borrower disability. Credit life insurance settles the debtor's loans posthumously. Premiums are often loan-dependent.

How does Insurance Work?

When you buy a policy, you need to make payments for premium on regular intervals. You may think what is insurance premium? It is part by part cost of insurance that the policy holder has to pay for avaling the benefits of the policy.

Insurance premium is determined by the probability and law of large numbers. Based on these, the cost is decided considering the risk factors. Higher the probability of an event, higher is the cost of the premium. 

Many policies include deductible. It is a type of amount that you need to pay before the insurance company pays its share. Higher deductible will lead to less premium amount.

For instance, for a home insurance, the total damage is 10 lakh rupees. However, your deductible share is 2 lakh rupees. In such case, your insurance company will be liable to pay 8 lakh rupees.  

Let us consider health insurance to illustrate how insurance works through a scenario:

1. Say, John is a 30-year-old software developer who has purchased a health insurance policy. He pays a monthly premium to keep his insurance active.
2. He goes for an annual check-up, which is fully covered under his health insurance plan as preventive care. He pays nothing for this visit, as it's included in his benefits.
3. One day, John wakes up with severe abdominal pain and goes to the emergency room. He is diagnosed with appendicitis and needs surgery.
4. John's health insurance plan has a $1,000 annual deductible. This means John must pay the first $1,000 of his medical costs for the year before his insurance covers the expenses.
5. After John pays his deductible, his health insurance plan has a 20% coinsurance. This means for the remaining hospital bill, John is responsible for paying 20%, and his insurance will cover 80%.
6. John's plan also has an out-of-pocket maximum of $5,000. This is the most John will have to pay in a year for covered services. Once he reaches this limit, his insurance pays 100% of his covered medical expenses for the rest of the plan year.

How to File Claim?

Considering the same scenario, let us understand the process of filing an insurance claim for John's scenario, outlined in steps:

1. Receiving Medical Services: John is treated at the hospital, which collects his health insurance information.
2. The Claim is Initiated: The hospital sends a detailed claim to John's insurance provider for the services rendered.
3. Review of the Claim: The insurance company reviews the claim against John's policy to determine coverage.
4. Explanation of Benefits (EOB): John receives an EOB from the insurer, explaining what costs were covered and what he owes.
5. Payment to Provider: The insurance company pays the hospital directly for the portion of the bill they cover.
6. Patient's Payment: John receives a bill for any amount not covered by insurance, which he is responsible for paying.
7. Appeal if Necessary: If there's a dispute or denial, John can appeal the insurance company's decision.
8. Final Resolution: After all payments and appeals, the claim is closed once John settles any outstanding charges.

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Why do we Need Insurance?

Insurance has numerous benefits for the policy holder. Some of the major benefits of insurance include the following:

Financial Security During Medical Emergencies

Although an individual may have enough savings, medical treatments for his/her family may go beyond the available financial assets. Medical bills for surgeries, heart attacks, cancer are extremely expensive and can put a major dent in the bank statements. Insurance helps in covering such losses and prepares the insured financially for the future. 

Secures Businesses

Business owners need coverage for liability claims and property damage. Otherwise, their companies may not be able to function after covering for a loss. This applies to all businesses - small, medium and large. In general, small business owners have greater risks when they do not have an insurance plan. Any damage to his/her company without it must be paid for, from his/her own personal expenses. 

Income Tax Benefits

Purchasing insurance can reduce the income tax payable. Section 80C of the Income Tax Act maintains that 

1. Section 80C: The premium amount one pays for life insurance gets a deduction of up to INR 1.5 lakh from the taxable income.
2. Section 80D: The premium paid for health insurance policies is tax-deductible under Section 80D of the Income tax Act 1961.
3. Section 10(10D): Life insurance benefits that  the policyholder or the nominee receives is tax-exempted under this section.

You can claim the tax benefits while filing the ITR.

Learn about types of tax assessment in Income Tax

A Banking, Finance, and Insurance course would typically focus on the principles and practices of the financial industry, such as banking, investing, insurance, and risk management. These classes are intended to give students a firm foundation in financial principles and practices. Students study various financial markets, such as stock markets, bond markets, commodity markets, and currency markets. They investigate how these markets function, particularly the trading and price systems.

The origins of banking can be found back in ancient times when lenders began offering basic financial services. Since then, banking has evolved into today's complex and multifaceted systems. Institutions within banking are known as banks. Banks manage the flow of money in the economy, offering credit which fuels business growth and consumer spending. They offer variety of services, from simple savings accounts to lending options. 

Besides accepting deposits and providing loans, allowing people to borrow money; banks also facilitate the movement of money within the economy. This ensures liquidity and stability within the system. The role of banks extends beyond individual financial health to the broader economy. They are key players in implementing government monetary policies, which aim to control inflation and stabilize the economy. By adjusting interest rates and controlling credit availability, banks can influence economic activity, demonstrating their pivotal role in both national and global economies.

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Types of Banking

The banking sector is diverse, catering to a wide range of needs through different types of banking. Each type plays a unique role in the financial ecosystem.

1. Retail Banking

This type is consumer-oriented, focusing on the financial needs of individual customers. Retail banks offer essential services like checking and savings accounts, which are fundamental for day-to-day financial transactions and savings. They also provide personal loans and credit cards, catering to the credit needs of individuals. Retail banking offers accessible financial services. State Bank of India (SBI) is an example of retail bank. It offers variety of services including savings and checking accounts, personal loans, and credit cards.

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2. Commercial Banking

Commercial banks primarily serve businesses, ranging from small enterprises to large corporations. They handle business deposits, providing a safe place for companies to store their funds. Additionally, these banks offer loans and credit services tailored to business needs, supporting everything from operational expenses to major expansions. Commercial banking is crucial for business growth and economic development. ICICI Bank is well-known for its commercial banking services, providing business loans, credit facilities, and cash management services to businesses.

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3. Investment Banking

Investment banks specialise in complex financial transactions. They play a key role in mergers and acquisitions, helping companies to expand or merge with others. Investment banks also provide investment services, offering advice and strategies for both companies and wealthy individuals looking to grow their wealth through investments. Kotak Mahindra Bank is notable in this sector, offering services in mergers and acquisitions, corporate finance, and other investment banking activities.

Find the top bank courses for jobs for a lucrative banking career. Expand your knowledge with detailed online banking courses.

4. Central Banking

Central banks, such as the Federal Reserve in the U.S., are key to a country's financial system. They manage the national currency, control money supply, and set interest rates. Central banks also oversee and regulate the commercial banking system, ensuring stability and preventing financial crises. The Reserve Bank of India is the central bank of India, responsible for regulating the monetary and financial system of the country.

5. Private Banking

Private banking offers personalized financial services to high-net-worth individuals. These services include wealth management, where private bankers help clients grow and manage their wealth, often providing tailored investment advice and solutions. HDFC Bank provides private banking services through its Private Banking division, offering wealth management and investment advisory services.

6. Online and Mobile Banking

The rise of the internet and smartphones has led to the growth of online and mobile banking. These digital platforms allow customers to conduct most banking transactions remotely, offering convenience and accessibility. Online and mobile banking represents the technological evolution in the banking sector, meeting the demands of a digitally connected world. Axis Bank is known for its robust online and mobile banking platforms, providing customers with digital services like fund transfers, bill payments, and account management.

7. International Banking

International banks specialize in cross-border financial services. They handle foreign exchange transactions and provide international trade financing, essential for businesses engaged in global trade. International banking is crucial for the smooth operation of the global economy. Punjab National Bank (PNB) offers international banking services, including foreign exchange services and Non-Resident Indian (NRI) banking services.

8. Islamic banking

Islamic banks are based on the principles of Sharia law. It avoids interest-based financial products, focusing instead on ethical banking practices. Islamic banks offer products that are compliant with Islamic finance principles, catering to the financial needs of the Muslim population. An example of Islamic banking is Al Rajhi Bank. It is one of the largest Islamic banks. It operates following Islamic Sharia law, offering products and services like interest-free loans, Islamic mortgages (known as Murabaha), and Islamic leasing (Ijarah).

Current Banking Trends

The banking industry is constantly evolving, driven by technological advancements, changing customer expectations, and emerging regulatory requirements. Here are some of the key banking trends that are shaping the industry in 2023:

1. Digital Transformation and Open Banking

The digitization of banking services is accelerating, with banks investing heavily in digital platforms, mobile apps, and artificial intelligence (AI) to enhance customer experience and streamline operations. Open banking initiatives are also gaining traction, allowing customers to securely share financial data with third-party providers for more tailored financial solutions.

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2. Embedded Finance

Embedded finance is integrating banking services into non-financial platforms including e-commerce websites and social media apps. This trend allows customers to seamlessly conduct financial transactions without leaving the platform they are using, creating a more convenient and integrated financial experience.

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3. Hyper-Personalization and Data-Driven Insights

Banks are leveraging data analytics and AI to provide personalized financial advice, product recommendations, and risk assessments. This hyper-personalization approach aims to tailor financial services to individual customer needs and preferences, enhancing customer satisfaction and loyalty.

4. Artificial Intelligence and Machine Learning

AI and machine learning are revolutionizing various aspects of banking, including fraud detection, customer service chatbots, and automated investment management. These technologies are enabling banks to improve operational efficiency, reduce costs, and provide more sophisticated financial solutions.

5. Focus on Financial Wellness and Education

Banks are increasingly recognizing the importance of financial wellness and are incorporating financial education initiatives into their offerings. This includes providing budgeting tools, debt management guidance, and personalized financial advice to help customers make informed financial decisions.

6. Cybersecurity and Regulatory Compliance

Cybersecurity is one of the primary concerns for banks as they face increasing threats from cyberattacks. Banks are investing in robust cybersecurity measures and implementing stricter data protection protocols to safeguard customer information and comply with evolving regulatory requirements.

7. Sustainability and Environmental, Social, and Governance (ESG) Banking

There is growing demand for sustainable banking practices and ESG-focused investments. Banks are responding by developing sustainable products and services, incorporating ESG considerations into their lending decisions, and promoting responsible investment practices.

Why pursue Banking, Finance and Insurance course?

Courses in Banking, Finance, and Insurance provides expert financial knowledge and abilities. You'll develop a better grasp of the industry's operations, investing principles, insurance procedures, and risk management.Diploma programs are frequently geared to give students with practical, job-ready skills. In comparison to a complete degree program, this means you can enter the workforce sooner. You'll be well-prepared for entry-level careers in finance.

Note: The above data is collated from various sources and may therefore vary. 

Who can pursue Banking, Finance and Insurance?

Individuals with a high school diploma or similar education can pursue a diploma or degree in Banking, Finance, and Insurance to work as entry-level professionals in the area. Bachelor's degree programs in finance and related subjects are available at many institutions and schools. Undergraduate students can enroll in these programs to prepare for a career in finance. People working in other professions who want to transfer to a job in finance or banking can do so by pursuing suitable certifications, diploma programs, or further degrees.

BFSI Course Relevant Information:

What is Banking?

An Introduction to Private Sector Banks

Candidates must note that the eligibility criteria may vary from institute to institute. Individuals must check the official website of the college/university they desire to be admitted to. Colleges like IMI, ISB, and IIMP accept CAT/GMAT/MAT/XAT scores for admission. While some institutes grant direct admission on a merit basis.  

BFSI Course Relevant Information: 

Is BCom necessary to make a career in Banking & Finance?

To pursue a career in Banking, Finance & Insurance the candidates must either pursue Commerce at university level or professional courses like ICAI, ICSI and CFA. Given below are the top exams for Banking, Finance & Insurance courses:

Note- This information is sourced from the official website of the institute/exam.

BFSI Course Relevant Information: 

List of all MBA entrance exams

The most popular Government recruitment exams in the Banking sector include the following:

The syllabus and subjects of Banking, Finance & Insurance courses vary level-wise. Given below are some of the main topics taught in these courses at graduation level.

Banking, Finance & Insurance Courses

Many diploma, part-time and online certification courses are also available in Banking, Finance & Insurance sectors for working professionals who wish to learn more professional skills and latest methods being used in the industry for better career prospects. Listed below are some of the most popular UG and PG degree courses in Banking Finance & Insurance:

Candidates choose colleges based on their fee structure as well as the placement opportunities. There are around 145 law colleges that offer courses in Banking, Finance, and Insurance across all levels of education such as UG, PG, UG Diploma, PG Diploma, and After 10th Diploma. Some colleges also offer short-term diploma courses in Banking, Finance, and Insurance. The admissions to these courses are done purely based on entrance tests conducted by the university or based on merit. Some of the top government and private colleges are in the list below. The colleges mentioned in the table are listed alphabetically and not in any order of ranking hierarchy.

Top Government Colleges for Banking, Finance and Insurance

Few government colleges such as central and state universities, offer Banking, Finance and Insurance courses. These colleges are as follows:

Note- This information is sourced from the official website/ counselling body and may vary.

Top Private Colleges for  Banking, Finance and Insurance

Many private colleges also offer Banking, Finance and Insurance courses across various course levels. Some of the colleges offering these courses are as follows:

Note- This information is sourced from the official website/ counselling body and may vary.

BFSI Course Relevant Information: 

List of All Finance Colleges in India

The various job profiles offered to fresh graduates and experienced candidates are given below:

Note- The above salary has been taken from external sources, and hence may vary.

Banking, Finance & Insurance: Top Recruiters

Top recruiters for banking, finance and insurance professional included government organisations, non-government organisations, private companies, banks, insurance agencies and finance companies.

Candidates can refer to this section for Banking, Finance, and Insurance course FAQs.