IRDAI IC-38 Exam Preparation
Everything you need to clear the IRDAI IC-38 agent licensing exam on your first attempt.
Exam Overview
50
Questions
1 hr
Duration
35/50
Pass Mark (70%)
MCQ
Format
Complete Syllabus
Chapter 1: Insurance. Concept & Evolution
10%- Definition of insurance
- History and evolution
- Role of insurance in economic development
- Types of insurance (life, general, health)
Chapter 2: Principles of Life Insurance
15%- Insurable interest
- Utmost good faith
- Indemnity
- Subrogation
- Contribution
- Proximate cause
Chapter 3: Types of Life Insurance Products
20%- Term plans
- Endowment plans
- Money back
- ULIP
- Pension
- Whole life
- Group insurance
- Micro insurance
Chapter 4: Life Insurance Underwriting
10%- Risk assessment
- Medical underwriting
- Financial underwriting
- Moral hazard
- Standard and sub-standard lives
Chapter 5: Policy Document & Conditions
15%- Policy provisions
- Nomination and assignment
- Lapse and revival
- Surrender and paid-up value
- Loan against policy
- Riders and add-ons
Chapter 6: Regulatory Framework
10%- IRDAI. role and powers
- Insurance Act 1938
- Insurance Amendment Act 2015
- Policyholder protection regulations
- Licensing of agents
Chapter 7: Claims Settlement
10%- Types of claims
- Claim process
- Documents required
- Settlement options
- Repudiation of claims
- Grievance redressal
Chapter 8: Agent's Role & Ethics
10%- Code of conduct for agents
- Ethical selling practices
- Disclosure requirements
- Mis-selling and consequences
- Agent licensing and renewal
Sample Practice Questions
Q1: Which principle of insurance states that the insured must disclose all material facts?
Answer: Utmost Good Faith (Uberrima Fides)
The insured must truthfully disclose all relevant information. Hiding facts can void the policy.
Q2: A policyholder can take a loan against an LIC policy after paying premiums for how many years?
Answer: After 3 years of premium payment (when surrender value is acquired)
The policy acquires surrender value typically after 3 years, enabling loan facility.
Q3: What is the maximum commission an agent can earn on the first year premium of an endowment plan?
Answer: 35% of the first year premium
IRDAI caps first-year commission at 35% for traditional plans. Renewal is 5-7.5%.
Q4: Under which section of the Income Tax Act are life insurance premiums eligible for tax deduction?
Answer: Section 80C
Premiums up to ₹1.5 lakh per year are deductible under Section 80C (old tax regime).
Q5: What is the free-look period for a life insurance policy in India?
Answer: 15 days (30 days for online/distance marketing policies)
If unhappy with the policy, you can return it within this period for a full refund minus proportionate charges.
Exam Day Tips
- The exam is 50 multiple-choice questions, 1 hour duration
- You need 35 out of 50 to pass (70%)
- Questions are in English and Hindi. choose your preferred language
- Focus on Chapters 3, 5, and 6. they carry the most weight
- Understand the difference between all plan types thoroughly
- Know the key IRDAI regulations and policyholder rights
- Practice with mock tests. the exam format is straightforward
- Don't memorize. understand concepts. Questions test understanding, not rote learning
- Carry your Aadhaar card and admit card to the exam center
- Results are typically available within 24-48 hours
This is a study guide based on the IC-38 syllabus. For the official syllabus and study material, visit the Insurance Institute of India (III) website or contact your Development Officer.