Top IRDA Exam Questions You Must Practice in 2025

Becoming an insurance agent in India is a rewarding career choice, offering flexibility, financial potential, and the chance to make a meaningful impact on people’s lives. The Insurance Regulatory and Development Authority of India (IRDAI) oversees the licensing of insurance agents through the IC-38 exam, a critical step for anyone aspiring to sell life, health, or general insurance policies. Preparing for this exam can feel daunting, but with the right focus and practice, you can ace it. In this blog, we’ll dive into the top IRDA exam questions you should practice in 2025 to ensure you’re ready to pass with flying colours. We’ll break down the key topics, share sample insurance agent exam questions and answers, and provide tips to help you succeed.

Why the IRDA IC-38 Exam Matters?

The IRDA IC-38 exam is the gateway to becoming a certified insurance agent in India. Conducted by the Insurance Institute of India on behalf of the IRDAI, this online, multiple-choice exam tests your understanding of insurance principles, regulations, and products. It’s designed to ensure that agents are well-equipped to guide clients ethically and effectively. The exam consists of 50 questions, and you need to score at least 18 marks (35%) to pass. While the pass mark may seem achievable, the breadth of topics means thorough preparation is essential.

The syllabus covers life, health, and general insurance, along with regulatory frameworks, ethical practices, and basic financial planning. With the insurance sector evolving rapidly, 2025 brings updated guidelines, making it crucial to focus on current trends and concepts. Let’s explore the key areas and sample questions you should prioritise in your preparation.

Key Topics to Master for the IRDA IC-38 Exam

The IC-38 exam tests a range of topics to ensure you’re ready to navigate the complexities of the insurance industry. Here are the core areas to focus on:

1. Insurance Principles and Concepts
   Understanding the fundamentals of insurance, such as risk transfer, insurable interest, indemnity, and utmost good faith, is critical. These concepts form the backbone of the exam and real-world insurance practices.
2. Life Insurance Products
   Questions often cover types of life insurance policies (term, endowment, ULIPs), their benefits, and suitability for different life stages. You’ll need to know how these products address needs like income protection or retirement planning.
3. Health and General Insurance
   Health insurance topics include policy features, exclusions, and claim processes. General insurance questions may cover motor, property, or liability insurance, focusing on perils, hazards, and coverage scope.
4. Regulatory Framework
   The IRDAI’s role, licensing requirements, and policyholder protection measures are key areas. You’ll need to understand the IRDA Act, 1999, and regulations like the IRDAI (Protection of Policyholders’ Interests) Regulations.
5. Financial Planning and Ethics
   Questions often test your ability to assess client needs, recommend suitable products, and adhere to ethical standards. Numerical questions on premiums, claims, or tax benefits may also appear.
6. Claims and Policy Servicing
   Understanding the claims process, documentation, and timelines is essential, especially for life and health insurance policies.

Top IRDA Exam Questions to Practice in 2025

To help you prepare, we’ve curated a list of sample questions that reflect the types of IRDA exam questions you’re likely to encounter. These cover the key topics and include a mix of fact-based, scenario-based, and numerical questions. Practice these to build confidence and familiarity with the exam format.

1. Insurance Principles

Question: Which of the following best defines the principle of insurable interest?
A) The policyholder must benefit financially from the insured event.
B) The policyholder must have a legal relationship with the insured subject.
C) The policyholder must bear a financial loss if the insured event occurs.
D) The policyholder must be the owner of the insured asset.

Answer: C) The policyholder must bear a financial loss if the insured event occurs.
Explanation: Insurable interest means the policyholder must suffer a financial loss if the insured event happens, ensuring the insurance contract is valid.

Practice Tip: Focus on understanding core principles like indemnity, proximate cause, and subrogation. Scenario-based questions often test how these apply in real-life situations.

2. Life Insurance Products

Question: Which type of life insurance policy is most suitable for a young professional seeking high coverage at a low premium?
A) Endowment policy
B) Whole life policy
C) Term insurance policy
D) Unit-linked insurance plan (ULIP)

Answer: C) Term insurance policy
Explanation: Term insurance offers high coverage at affordable premiums, making it ideal for young professionals seeking protection without investment components.

Practice Tip: Study the features, benefits, and limitations of different life insurance products. Be ready to match products to client profiles based on age, income, and goals.

3. Health Insurance

Question: What is the maximum period an insurance company can take to investigate a death claim under a health insurance policy?
A) 15 days
B) 30 days
C) 45 days
D) 60 days

Answer: B) 30 days
Explanation: As per IRDAI regulations, insurers must complete investigations into death claims within 30 days to ensure timely claim settlement.

Practice Tip: Review IRDAI’s guidelines on claim processing and common exclusions in health insurance policies.

4. Regulatory Framework

Question: Which of the following is a primary function of the IRDAI?
A) Selling insurance policies
B) Protecting policyholders’ interests
C) Managing insurance company investments
D) Providing loans to policyholders

Answer: B) Protecting policyholders’ interests
Explanation: The IRDAI’s primary role is to safeguard policyholders, regulate the insurance industry, and ensure its growth and stability.

Practice Tip: Memorise key provisions of the IRDA Act, 1999, and regulations related to licensing and policyholder rights.

5. Financial Planning

Question: A client with a monthly income of ₹50,000 wants to save for retirement. Which product should an insurance agent recommend?
A) Term insurance
B) Health insurance
C) Pension plan
D) Motor insurance

Answer: C) Pension plan
Explanation: A pension plan is designed to provide income during retirement, aligning with the client’s goal.

Practice Tip: Practice scenario-based questions that require matching insurance products to client needs. Understand the difference between real and perceived needs.

6. Numerical Ability

Question: A policyholder pays an annual premium of ₹12,000 for a life insurance policy. If the policy offers a 10% discount on the premium for paying annually instead of monthly, how much would the policyholder save annually?
A) ₹1,200
B) ₹1,333
C) ₹1,500
D) ₹1,800

Answer: B) ₹1,333
Explanation: The annual premium is ₹12,000 after a 10% discount. The original premium (without discount) is ₹12,000 ÷ 0.9 = ₹13,333. The savings is ₹13,333 - ₹12,000 = ₹1,333.

Practice Tip: Brush up on basic calculations involving percentages, discounts, and premiums. Time management is key for numerical questions.

7. Ethics and Policy Servicing

Question: What should an insurance agent do if a client provides incomplete information on a policy application?
A) Submit the application as is
B) Request the client to provide complete and accurate information
C) Fill in the missing details based on assumptions
D) Reject the application outright

Answer: B) Request the client to provide complete and accurate information
Explanation: The principle of utmost good faith requires full disclosure from the client to ensure a valid insurance contract.

Practice Tip: Study ethical guidelines and the importance of transparency in insurance transactions.

How to Prepare Effectively for the IRDA IC-38 Exam?

1. Complete the Mandatory Training: The IRDAI mandates a 50-hour training for life or general insurance agents and 75 hours for composite insurance agents. Use this training to build a strong foundation in insurance concepts.
2. Use Updated Study Material: The IRDA syllabus was updated in April 2023, so ensure your study resources reflect the latest guidelines. The Insurance Institute of India provides official IC-38 study material.
3. Practice Mock Tests: Take online mock tests to familiarise yourself with the exam format and improve time management. Focus on both fact-based and scenario-based questions.
4. Focus on Time Management: With 50 questions to answer in 60 minutes, practice answering quickly and accurately. Aim to spend about one minute per question.
5. Stay Updated: Keep an eye on IRDAI’s latest regulations and industry trends, as these may influence question framing.
6. Revise Regularly: Create a revision schedule to reinforce key concepts like insurance principles, product features, and regulatory norms.
   
   Read More : IRDA Exam Syllabus for Insurance Agent

Conclusion

Preparing for the IRDA IC-38 exam in 2025 is a journey that requires dedication, but with the right approach, you can pass with confidence. By practising the top IRDA exam questions outlined above, you’ll build a solid understanding of insurance concepts, regulations, and ethical practices. The insurance industry offers immense opportunities to grow as a professional while helping clients secure their financial future. Companies like Niva Bupa, known for their innovative health insurance solutions, rely on well-trained agents to deliver value to policyholders. With thorough preparation and a commitment to excellence, you’ll be well on your way to becoming a certified insurance agent and making a difference in the industry.

FAQs

1. What is the IRDA IC-38 exam?

   
   The IC-38 exam is a mandatory certification test conducted by the Insurance Institute of India on behalf of the IRDAI to license individuals as insurance agents for life, health, or general insurance.

2. What is the passing mark for the IRDA IC-38 exam?

   
   Candidates need to score at least 18 marks (35%) out of 50 to pass the IC-38 exam.

3. How many questions are there in the IRDA IC-38 exam?

   
   The exam consists of 50 multiple-choice questions, each carrying one mark.

4. Is there negative marking in the IRDA IC-38 exam?

   
   No, there is no negative marking for incorrect answers in the IC-38 exam.

5. How long is the IRDA exam license valid for?

   
   The insurance agent license is valid for three years, after which it can be renewed with 25 hours of practical training.

6. What is the eligibility criteria for the IRDA IC-38 exam?

   
   Candidates must be at least 18 years old and have completed 10+2 education (10th pass for rural areas with a population below 5,000). They must also complete mandatory IRDAI-prescribed training.

7. How can I access mock tests for the IRDA IC-38 exam?

   
   Mock tests are available through the Insurance Institute of India’s website, training institutions, or online platforms offering IC-38 practice tests.