Top IRDA Exam Questions You Must Practice in 2026

Clearing IC-38 is essential for an insurance advisor license in India. The exam has 50 MCQs, which are to be solved within 60 minutes. The cutoff is 35%. With zero negative marking, candidates must attempt every question. Focus on mastering core legal principles and IRDAI regulations. Also complete mandatory pre-licensing training hours and mock tests to ensure first-attempt success.

Quick Reads

• The exam has 50 multiple-choice questions that need to be completed in 60 minutes, and one needs to secure at least 35% marks to pass, with no negative marking.
• Prepare principles like insurable interest, indemnity, subrogation, and proximate cause in health insurance.
• You get roughly 70 seconds per question, so time management during numerical problems is critical.
• Passing the exam is an important step towards obtaining an insurance agent licence and pursuing opportunities with insurers in India.

Between gaining practical experience from the mandatory pre-licensing training hours and managing your daily life, finding the right study plan and exam strategy matters a lot. The thing, though, is that passing the IC-38 does not require you to memorise an entire textbook. Focusing on core insurance principles and jargon and understanding the examination pattern can help you get certified more quickly.

What Is the IRDAI IC-38 Exam and How Does It Work?

The IC-38 exam is a mandatory online test conducted by the Insurance Institute of India on behalf of the IRDAI to license agents applying for licenses in life, health, and general insurance fields. This exam evaluates you on your practical understanding of policy terms, insurance guidelines, customer service techniques, and knowledge of regulatory frameworks.

The structure of the test and exam pattern is simple:

What Topics Should You Study?

You should focus on studying insurance principles, product features across different categories, IRDAI regulations, and ethical customer advisory practices while preparing for this examination. These subjects will help you prepare for most of the questions on the test paper.

Insurance Principles

Expect a lot of questions related to indemnity, insurable interest, proximate cause, and utmost good faith.

Life Insurance Products

Understand different products such as term insurance, endowment plans, ULIPs, and how each meets financial goals for policyholders.

Health and General Insurance

Study common exclusions, waiting periods, claim filing procedures, and cashless hospital networks and allied topics in detail.

Regulatory Rules

Learn the core functions of the IRDAI Act, 1999, and understand the policyholder protection guidelines issued by IRDAI.

Ethics and Advisory

Master the importance of client needs assessment, accurate disclosure, and fair trade practices.

Basic Calculations

For calculating net premiums, discounts, percentage values, and claim payouts, maths skills and basic calculating ability are non-negotiable.

What Questions Can Be Asked in the IRDAI IC-38 Exam?

The IC-38 exam tests your knowledge across seven core subjects, including fundamental insurance principles, life insurance product structures, health policy rules, IRDAI regulatory frameworks, needs-based financial planning, premium calculations, and the ethical code of conduct.

1. Fundamental Principles of Insurance

This topic forms the absolute bedrock of the exam. You need to understand how risk transfer works, along with core legal concepts like indemnity, subrogation, proximate cause, and insurable interest.

You will likely see scenario-based questions asking you to identify which legal principle applies when a policyholder suffers a financial loss or attempts to claim compensation from multiple insurance policies for the same event.

2. Life Insurance Product Structures

Questions here evaluate your understanding of different policy types, such as term plans, endowment policies, whole life plans, and Unit-Linked Insurance Plans (ULIPs), and which plan fits a client's specific life stage.

Expect a scenario-based question in which a young professional seeks maximum life cover on a tight budget and asks you to select the most suitable policy category from a list of options.

3. Health Policy Rules and Investigation Timelines

This area tests your knowledge of health coverage mechanics, common waiting periods, policy exclusions, and strict IRDAI mandates governing claim processing.

The exam often asks about regulatory deadlines, such as the maximum number of days an insurance company is legally allowed to take when investigating a death or health claim.

4. IRDAI Regulatory Authority and Legal Framework

You must know the historical context and main provisions of the IRDAI Act, 1999, alongside the primary responsibilities of the regulator in maintaining market stability.

You will face direct questions testing your knowledge of IRDAI's primary mandate, asking you to identify its main function in relation to policyholder protection versus commercial activities.

5. Needs-Based Financial Planning

This section will test your abilities as an advisor who evaluates a customer’s financial profile, income, dependents' status, and long-term goals before recommending a specific product.

Questions usually present a customer profile, such as a middle-class earner seeking a dedicated income after retirement, and ask which product aligns directly with that goal.

6. Premium Calculations and Discounts

These numerical questions test your basic math skills to focus on how annual discounts, taxes, or pro-rated refunds affect final premium figures.

Expect a word problem where a client pays a discounted annual premium amount, requiring you to calculate the original pre-discount cost using simple percentage formulas.

7. Code of Ethics and Policy Servicing

This section measures your understanding of agent conduct, fair disclosure, avoiding misrepresentation, and upholding uberrima fides (utmost good faith) during application handling.

You will likely be asked what specific action an ethical agent must take when a customer leaves critical health details or personal information blank on an application form.

How Do You Prepare to Pass on Your First Attempt?

To pass the exam on your first try, you need to first complete your on-ground training, use official study materials, take mock tests, practice time management, and answer every question during the actual exam.

Finish Mandatory Training

Complete all required hours through your designated institute. Complete your mandated 50 hours of pre-licensing training (75 hours for composite licensing). Use this structured learning to build your conceptual baseline.

Study Updated Materials

Focus on the current Insurance Institute of India modules. Use updated IC-38 study guides and avoid outdated question banks that lack recent IRDAI regulatory updates or current policy norms.

Practice Mock Tests

Pace yourself for the 60-minute limit. Take multiple timed mock tests online. Practising under a clock helps you build your 70 seconds per question pace without getting stuck on calculations.

Answer Every Single Question

Take advantage of zero negative marking. Never leave any blank responses on your test screen. If you don’t know the answer to a question, eliminate obviously wrong answers and make an educated guess.

Conclusion

Clearing your IC-38 exam officially opens the door to building a flexible, high-growth career as a licensed advisor. Top insurance providers such as Niva Bupa Health Insurance rely on certified, knowledgeable agents to connect individuals and families with high-quality medical coverage. Dedicate yourself and practice core principles, take multiple mock tests, and you will walk into the test centre ready to pass.

Frequently Asked Questions

Who can appear for the IC-38 exam?

Anyone who is at least 18 years old and has completed 10+2 education can take the exam, provided they complete their mandatory pre-licensing training hours first.

Is there negative marking on the IC-38 exam?

No, there is zero negative marking for incorrect answers. You should mark an answer for all 50 questions before submitting your test.

How long is an IRDAI insurance agent license valid in India?

An agent license stays active for three years. You can renew your license by completing the required practical refresher training prior to your expiration date.

Where can candidates find official IC-38 mock practice tests?

Official study materials and mock tests are accessible via the Insurance Institute of India portal, approved agent training platforms, and official insurer study modules.

What will happen if I fail the IC-38 on my first attempt?

If your test score is under 18 marks, then in this case, you can re-register for the exam. You just need to pay the re-examination fee beforehand and select the next available test date to retake the examination.