Курс - course, right it's course of a ship, or in this specific case 'course of actions, how the situation evolves'.
Я не в курсе дела - I don't have knowledge of the situation, я не в курсе по поводу деталей ситуации - I don't know the details of the situation.
Hence, the shortened version - я не в курсе (I don't know about the situation, about it). Я не был в курсе - I didn't know about it, I was not informed, Noone told me.
I think in this meaning it is used mostly in work environment, or when they have to plan something, or discuss a past or current event.