Top 100 IRDAI IC38 Important Questions (With Answers)
- IRDAI was established in which year?
A. 1999
B. 2000
C. 2002
D. 2001
Answer: B. 2000 - What does IRDAI stand for?
A. Insurance Regulatory and Development Authority of India
B. Indian Regulation Department Authority
C. Insurance Reform and Development Agency of India
D. Indian Risk Development Agency
Answer: A - Headquarters of IRDAI is located in —
A. Mumbai
B. Hyderabad
C. New Delhi
D. Chennai
Answer: B - Which is the first life insurance company in India?
A. Oriental Life Insurance Company
B. LIC
C. New India Assurance
D. ICICI Prudential
Answer: A - LIC was established in —
A. 1950
B. 1956
C. 1960
D. 1970
Answer: B - What is the full form of LIC?
A. Life Insurance Corporation of India
B. Life Investment Corporation
C. Loan Insurance Company
D. Life Insurance Company
Answer: A - Insurance means —
A. Certainty of profit
B. Transfer of risk
C. Increase of wealth
D. None of these
Answer: B - Which section of the IRDA Act deals with registration of insurers?
A. Section 3
B. Section 5
C. Section 14
D. Section 42
Answer: A - The primary function of insurance is —
A. Risk transfer
B. Profit generation
C. Investment
D. Loan facility
Answer: A - Who is the regulator of insurance sector in India?
A. RBI
B. SEBI
C. IRDAI
D. NABARD
Answer: C - What is the minimum age to become an insurance agent?
A. 16 years
B. 18 years
C. 21 years
D. 25 years
Answer: B - How many members are there in IRDAI?
A. 5
B. 7
C. 10
D. 9
Answer: D - Which type of risk is insurable?
A. Pure risk
B. Speculative risk
C. Business risk
D. Market risk
Answer: A - Which of the following is not a principle of insurance?
A. Indemnity
B. Contribution
C. Maximization
D. Subrogation
Answer: C - What is the tenure of IRDAI Chairman?
A. 3 years
B. 5 years
C. 6 years
D. 4 years
Answer: B - The sum assured is —
A. The guaranteed amount payable on maturity or death
B. Bonus
C. Commission
D. Surrender value
Answer: A - The risk starts when —
A. Proposal is signed
B. Premium is paid and proposal is accepted
C. Agent submits form
D. Medical test is done
Answer: B - Which document is evidence of insurance contract?
A. Proposal form
B. Premium receipt
C. Policy document
D. Nomination form
Answer: C - The term “Utmost Good Faith” means —
A. Honesty between insurer and insured
B. Profit sharing
C. Secret agreement
D. Risk reduction
Answer: A - Reinsurance means —
A. Insuring the insurer
B. Double insurance
C. Group insurance
D. None of these
Answer: A - Nomination is done under section —
A. 38
B. 39
C. 45
D. 49
Answer: B - Policy lapses when —
A. Premium is not paid within grace period
B. Agent leaves the job
C. Policyholder changes address
D. Policy is issued
Answer: A - Revival of a lapsed policy means —
A. Policy becomes valid again
B. New policy issue
C. Policy cancelled
D. Claim settlement
Answer: A - Insurance is based on —
A. Probability
B. Certainty
C. Luck
D. Guess
Answer: A - Which of the following is NOT a life insurance product?
A. Endowment plan
B. Term plan
C. Marine insurance
D. Money-back plan
Answer: C - The maximum sum insured under a term plan is generally —
A. ₹50 lakh
B. ₹1 crore
C. ₹2 crore
D. Depends on insurer
Answer: D - Bonus in life insurance is declared —
A. Annually
B. Monthly
C. Only on maturity
D. On death
Answer: A - Which type of insurance covers physical assets?
A. Life insurance
B. Health insurance
C. General insurance
D. Term insurance
Answer: C - Health insurance policy is valid for —
A. 1 year
B. 3 years
C. 5 years
D. Till claim is made
Answer: A - The IRDAI regulates —
A. Life insurance only
B. General insurance only
C. Both life & general insurance
D. Pension only
Answer: C - Grievance redressal in insurance is handled by —
A. Ombudsman
B. IRDAI HQ
C. Insurance company alone
D. RBI
Answer: A - Insurance premium depends on —
A. Age
B. Sum insured
C. Health condition
D. All of the above
Answer: D - Surrender value is —
A. Amount received when policy is cancelled
B. Death benefit
C. Premium refund
D. Bonus amount
Answer: A - Group insurance is usually taken by —
A. Companies for employees
B. Individuals
C. Banks only
D. Government only
Answer: A - Double insurance means —
A. Two policies on same risk
B. Multiple agents selling
C. Bonus insurance
D. Reinsurance
Answer: A - In case of claim dispute, insured can approach —
A. Insurance Ombudsman
B. Court directly
C. Agent
D. Policyholder association
Answer: A - Life insurance contract is —
A. Unilateral
B. Bilateral
C. Voidable
D. Conditional only
Answer: B - The principle of indemnity is applicable to —
A. Life insurance
B. General insurance
C. Both
D. None
Answer: B - Term insurance provides —
A. Death benefit only
B. Savings
C. Investment returns
D. Loan facility
Answer: A - Annuity plans provide —
A. Regular income
B. Lump sum on maturity
C. Bonus
D. Claim only on death
Answer: A - The waiting period in health insurance is for —
A. 15 days
B. 30 days
C. 60 days
D. 90 days
Answer: B - Accidental death benefit is optional in —
A. Term plans
B. Endowment plans
C. Money-back plans
D. Health plans
Answer: A - Which of the following is a social insurance scheme?
A. LIC
B. RSBY
C. HDFC Life
D. ICICI Prudential
Answer: B - Risk pooling helps —
A. Reduce individual risk
B. Increase risk
C. Avoid premium
D. Cancel policy
Answer: A - A policyholder can nominate —
A. Only one person
B. Multiple persons
C. Company
D. Agent
Answer: B - Section 45 of the Insurance Act deals with —
A. Policy contestability
B. Nomination
C. Surrender value
D. Premium payment
Answer: A - Policy loan is allowed in —
A. Term plan
B. Money-back plan
C. Endowment plan
D. Health plan
Answer: C - Microinsurance targets —
A. Low-income groups
B. High-income groups
C. Corporates
D. Government employees
Answer: A - Insurance agents must complete —
A. IRDAI exam (IC38)
B. Graduation
C. Medical test
D. Company training only
Answer: A - Life insurance is —
A. Pure risk cover
B. Savings instrument
C. Investment plan
D. Both risk cover and savings
Answer: D
- The IRDAI regulates premium rates —
A. Fully
B. Only in life insurance
C. Partially
D. Not at all
Answer: C - A policyholder can revive a lapsed policy within —
A. 1 year
B. 2 years
C. 3 years
D. 5 years
Answer: C - Reinsurance protects —
A. Insurer
B. Insured
C. Agent
D. Government
Answer: A - Marine insurance covers —
A. Fire
B. Accident
C. Transit of goods
D. Life
Answer: C - Fire insurance excludes —
A. Earthquake
B. Fire
C. Lightning
D. Storm
Answer: A - Insurance is based on —
A. Law of large numbers
B. Law of small numbers
C. Probability only
D. Random guess
Answer: A - Policy surrender is allowed after —
A. 6 months
B. 1 year
C. 2 years
D. 5 years
Answer: B - Health insurance claim is —
A. Reimbursement
B. Cashless
C. Both
D. None
Answer: C - Marine insurance is governed by —
A. Marine Insurance Act 1963
B. Insurance Act 1938
C. IRDAI Act 1999
D. Contract Act
Answer: A - Policyholder can take loan on —
A. Term plan
B. Endowment plan
C. Health plan
D. Accident plan
Answer: B - IRDAI’s first chairman was —
A. M. R. Kumar
B. T.S. Vijayan
C. R. Gandhi
D. S. Balachandran
Answer: A - The insurance premium includes —
A. Risk premium
B. Expenses
C. Profit margin
D. All of these
Answer: D - Insurance is a —
A. Contract of utmost good faith
B. Speculative contract
C. Void contract
D. Social agreement
Answer: A - Insurance Ombudsman can handle complaints up to —
A. ₹10 lakh
B. ₹20 lakh
C. ₹30 lakh
D. ₹50 lakh
Answer: B - Life insurance policy maturity can be —
A. Fixed
B. Flexible
C. Single
D. All of the above
Answer: B - Grace period in life insurance is —
A. 15 days
B. 30 days
C. 45 days
D. 60 days
Answer: B - Non-life insurance is also called —
A. General insurance
B. Term insurance
C. Endowment insurance
D. Health insurance
Answer: A - The principle of subrogation applies to —
A. Life insurance
B. General insurance
C. Both
D. None
Answer: B - Insurance premium is —
A. Fixed
B. Variable
C. Determined by insurer
D. Depends on risk
Answer: D - IRDAI issues —
A. Registration to insurers
B. Licenses to agents
C. Regulations for insurance companies
D. All of these
Answer: D - The life insurance policyholder can nominate —
A. Only adult
B. Any person
C. Agent
D. Company
Answer: B - Surrender value is —
A. Paid immediately after policy issue
B. Paid after policy is in force for a period
C. Only at death
D. None
Answer: B - Bonus is declared on —
A. Annual review
B. Every policyholder anniversary
C. At maturity
D. At claim
Answer: A - Life insurance protects against —
A. Accidental death
B. Death and survival risk
C. Health risk
D. Fire risk
Answer: B - IRDAI regulations protect —
A. Policyholders
B. Insurers
C. Agents
D. Shareholders
Answer: A
- Insurance agents must renew their license every —
A. 1 year
B. 2 years
C. 3 years
D. 5 years
Answer: B - Life insurance policies are classified into —
A. Term, Endowment, Money-back
B. Health, Term, Group
C. Fire, Marine, Health
D. Only Term
Answer: A - Health insurance can be —
A. Individual
B. Family floater
C. Senior citizen plan
D. All of the above
Answer: D - In life insurance, the beneficiary receives —
A. Surrender value
B. Sum assured on death
C. Premium
D. Bonus only
Answer: B - Insurance claim settlement ratio indicates —
A. Claims settled / Claims received
B. Total premium / Total claims
C. Agents performance
D. Policy lapses
Answer: A - Nomination in insurance is —
A. Mandatory
B. Optional
C. Only for minors
D. Only for companies
Answer: A - IRDAI regulates —
A. Insurance products
B. Commission structure
C. Agents and intermediaries
D. All of these
Answer: D - Surrender value becomes payable —
A. Immediately after policy issue
B. After certain lock-in period
C. Only at death
D. Only at maturity
Answer: B - Risk in insurance refers to —
A. Uncertainty of loss
B. Guaranteed loss
C. Investment return
D. Premium income
Answer: A - Microinsurance is regulated by —
A. IRDAI
B. RBI
C. SEBI
D. NABARD
Answer: A - The maximum cover under microinsurance is generally —
A. ₹50,000
B. ₹1,00,000
C. ₹2,00,000
D. ₹5,00,000
Answer: B - Section 39 of the Insurance Act deals with —
A. Nomination
B. Policy revival
C. Surrender value
D. Claim settlement
Answer: A - Insurance is based on —
A. Utmost good faith
B. Insurable interest
C. Indemnity
D. All of these
Answer: D - Group insurance is usually —
A. Mandatory
B. For employees of an organization
C. For agents
D. Optional for companies only
Answer: B - IRDAI was given statutory status in —
A. 1999
B. 2000
C. 2002
D. 2005
Answer: C - Life insurance agents should undergo —
A. Training
B. Pass IC38 exam
C. Renewal of license
D. All of these
Answer: D - Policyholder’s share of profit is called —
A. Bonus
B. Dividend
C. Commission
D. Interest
Answer: A - Claim settlement must be done —
A. Within 30 days
B. Within 90 days
C. As per IRDAI guidelines
D. No fixed timeline
Answer: C - Grace period is provided to —
A. Continue policy after premium due date
B. Cancel policy
C. Receive bonus
D. Nominate beneficiary
Answer: A - Reinsurance helps —
A. Spread risk
B. Increase premium
C. Avoid claims
D. Sell more policies
Answer: A - Insurance is a contract between —
A. Insurer and insured
B. Agent and insurer
C. Government and insured
D. Policyholder and agent
Answer: A - Claim under health insurance can be —
A. Cashless
B. Reimbursement
C. Both A & B
D. None
Answer: C - Endowment plans provide —
A. Death cover + Savings
B. Only death cover
C. Only savings
D. Only health cover
Answer: A - Term insurance is —
A. Pure risk cover
B. Investment-oriented
C. Combination of risk & savings
D. Health policy
Answer: A - The main objective of IRDAI is —
A. Protect policyholders
B. Regulate insurance industry
C. Promote orderly growth
D. All of the above
Answer: D
Top 100 Important Questions for IRDAI IC38 Exam (in English) — useful for Life, General & Health Insurance Agents.
Part 1: Basic Insurance Concepts (1–25)
- What is the full form of IRDAI?
👉 Insurance Regulatory and Development Authority of India - When was IRDAI established?
👉 1999 (by IRDA Act 1999) - Headquarters of IRDAI?
👉 Hyderabad - Who is the present chairman of IRDAI (2025)?
👉 Check latest — may change over time - What is the main purpose of insurance?
👉 To protect against financial loss caused by unforeseen events. - Insurance is based on which principle?
👉 Utmost Good Faith - What is the meaning of premium?
👉 The amount paid by insured to the insurer for coverage. - What does “Sum Assured” mean?
👉 The guaranteed amount payable on death or maturity. - Which principle ensures no profit from insurance?
👉 Principle of Indemnity - What is the primary role of an insurance agent?
👉 To solicit and procure insurance business on behalf of insurer. - Which type of insurance covers loss of human life?
👉 Life Insurance - Which insurance covers property loss?
👉 General Insurance - Health insurance covers what kind of risk?
👉 Medical or hospitalization expenses - What is term insurance?
👉 A policy providing coverage for a specific period only. - Endowment policy means what?
👉 Pays sum assured on death or maturity. - What is a policy lapse?
👉 When premium is not paid within grace period. - What is revival?
👉 Restoring a lapsed policy by paying due premium and interest. - What is assignment in insurance?
👉 Transfer of rights from policyholder to another person. - What is nomination?
👉 Appointment of a person to receive claim amount after death. - What is surrender value?
👉 Amount payable if policyholder terminates before maturity. - What is grace period?
👉 Extra time to pay premium after due date. - What is risk?
👉 Uncertainty of loss. - Which principle relates to full disclosure of facts?
👉 Utmost Good Faith - What is an insurance contract?
👉 A legal agreement between insurer and insured. - What is underwriting?
👉 Process of evaluating risk for issuing policy.
Part 2: IRDAI Functions & Regulations (26–50)
- What is the main function of IRDAI?
👉 To regulate, promote and ensure orderly growth of insurance industry. - IRDAI issues license to whom?
👉 Insurance companies, agents, brokers, surveyors. - What is the validity of an agent license?
👉 3 years - Minimum age to become an insurance agent?
👉 18 years - Minimum qualification to become a life insurance agent?
👉 10th pass (rural 10th; urban 12th) - Pre-licensing training hours required?
👉 25 hours - What is a composite insurance agent?
👉 An agent who sells both life and general insurance. - What is the full form of ULIP?
👉 Unit Linked Insurance Plan - What is reinsurance?
👉 Insurance for insurance companies. - What is micro insurance?
👉 Low-cost insurance for low-income groups. - What is claim?
👉 Demand for payment under the policy terms. - What is the function of an insurance surveyor?
👉 To assess loss or damage for claims. - IRDAI regulates how many types of insurance?
👉 Life, General, and Health - What is an insurer?
👉 Company providing insurance coverage. - Who is the insured?
👉 The person whose life/property is covered. - What is proposal form?
👉 Application form for insurance policy. - What is free-look period?
👉 15 days to cancel policy after receiving it. - What is grievance redressal?
👉 Process to handle customer complaints. - What is an intermediary?
👉 A person or organization connecting customers and insurers. - IRDAI regulates insurance advertisements under which rule?
👉 IRDAI (Insurance Advertisement and Disclosure) Regulations - What is bancassurance?
👉 Selling insurance through banks. - What is the main objective of insurance marketing firm?
👉 To distribute and promote insurance products. - What is solvency margin?
👉 Minimum capital insurer must maintain. - What is policyholder protection regulation?
👉 Ensures fair treatment and transparency for customers. - What is Insurance Ombudsman?
👉 Authority for resolving policyholder complaints.
Part 3: Life Insurance Specific (51–75)
- What is whole life policy?
👉 Covers the insured for their entire lifetime. - What is money back policy?
👉 Pays partial survival benefits at intervals before maturity. - What is annuity?
👉 Regular payment to insured after retirement. - What is double accident benefit?
👉 Additional amount payable on accidental death. - What is group insurance?
👉 Insurance cover for a group of employees or members. - What is keyman insurance?
👉 Covers loss of a key employee in business. - What is child insurance plan?
👉 Ensures child’s future in case of parent’s death. - What is nomination under Section 39?
👉 Appointment of nominee to receive claim. - What is assignment under Section 38?
👉 Transfer of policy ownership. - What happens when proposer and insured are different?
👉 Policy is issued in insured’s name with proposer as owner. - What is moral hazard?
👉 Risk arising from insured’s careless behavior. - What is insurable interest?
👉 Legal right to insure due to financial loss possibility. - What is revival period for lapsed policy?
👉 Up to 5 years from date of lapse. - What is paid-up value?
👉 Reduced sum assured after stopping premium payments. - What is maturity value?
👉 Sum assured + bonuses payable at end of term. - What is suicide clause?
👉 No claim if death by suicide within 1 year of policy. - What is reversionary bonus?
👉 Bonus added to policy value each year. - What is terminal bonus?
👉 One-time bonus at maturity or death. - What is grace period for yearly premium?
👉 30 days - For monthly mode?
👉 15 days - What is the claim settlement period under IRDAI norms?
👉 Within 30 days of receipt of documents. - What is Section 45 of Insurance Act?
👉 Prohibition of repudiation after 3 years. - What is the role of LIC in India?
👉 Largest life insurer, established in 1956. - What is FDI limit in insurance sector (2025)?
👉 74% - What is NAV in ULIP?
👉 Net Asset Value of investment fund.
Part 4: General & Health Insurance (76–100)
- What is motor insurance?
👉 Covers loss/damage to vehicles. - Third party insurance covers?
👉 Injury/death/damage to third party only. - Comprehensive motor policy covers?
👉 Own damage + third party liability. - What is fire insurance?
👉 Covers property loss due to fire. - What is marine insurance?
👉 Covers cargo and ships from sea risks. - What is burglary insurance?
👉 Covers loss due to theft or burglary. - What is crop insurance?
👉 Covers loss to farmers due to crop failure. - What is travel insurance?
👉 Covers loss during travel such as baggage loss or medical. - What is health insurance?
👉 Covers medical expenses due to illness or accident. - What is Mediclaim policy?
👉 Reimbursement of hospitalization expenses. - What is TPA?
👉 Third Party Administrator – processes health claims. - What is cashless claim?
👉 Hospital bills directly paid by insurer through TPA. - What is no claim bonus (NCB)?
👉 Discount in premium for claim-free years. - What is policy renewal?
👉 Continuing insurance for next term by paying premium. - What is deductible in insurance?
👉 Amount paid by insured before claim is paid. - What is exclusion?
👉 Conditions not covered by policy. - What is waiting period in health insurance?
👉 Time before certain diseases are covered. - What is co-payment?
👉 Insured shares a fixed % of claim amount. - What is pre-existing disease?
👉 Disease existing before policy start. - What is hospitalization?
👉 Admission for 24 hours or more. - What is claim repudiation?
👉 Rejection of claim due to policy breach. - What is portability in health insurance?
👉 Switching insurer without losing benefits. - What is IDV in motor insurance?
👉 Insured Declared Value – current market value of vehicle. - What is CNG/LPG endorsement?
👉 Extra cover for CNG/LPG fitted vehicles. - What is public liability insurance?
👉 Covers liability to public for accidental injury/damage.