Becoming an insurance agent in India is more than a career choice, instead it's about building a flexible profession that comes with strong earning potential and helps people secure their finances. The first step toward entering this fulfilling field is qualifying for the IRDAI-mandated IC-38 exam, which is generally considered foundational in selling life, health, or general insurance products. Though the IC-38 exam might appear challenging at first, the right preparation strategy can put success well within your grasp.

In this article, we will provide you with some of the best IRDA exam questions to practice in 2026. You will go through main concepts, sample IC-38 questions and answers, and some practical tips that will enhance your confidence level and make you better equipped for the exams. Be it the IRDAI Insurance Agent Exam, the Brokers Exam, or the Licentiate Exam, a proper understanding of insurance principles, regulatory norms, ethics, and actual scenarios is a must for appearing in these exams.

To help strengthen your IRDA exam preparation, we have compiled the most important IRDA questions on Life Insurance, General Insurance, Regulations, and Customer Handling to help you approach this 2026 exam with clarity and confidence.

Why the IRDA Exam Matters?

IRDA IC-38 exam is the gateway to being officially licensed as an insurance agent in India. The Insurance Institute of India, on behalf of IRDAI, conducts this online test to assess your knowledge regarding the fundamentals of insurance, insurance regulations, and product knowledge.

It consists of 50 multiple-choice questions, and one needs at least 18 marks to qualify. Although the passing score may sound achievable, the syllabus is wide, and there is a need for thorough study.

The curriculum encompasses topics on life, health, and general insurance concepts, regulatory frameworks, ethical practices, and basic financial planning. New guidelines within the industry in 2026 make it more important than ever to keep updated.

Key Topics to Master for the IRDA Exam

1. Insurance Principles and Concepts

Learn the core principles of risk, indemnity, insurable interest, utmost good faith, and proximate cause. These represent the foundation of both the exam and real-world insurance practice.

2. Life Insurance Products

One can expect questions on term plans, endowment policies, ULIPs, and whole life policies. Understand the features, benefits, and suitability across different life stages.

3. Health and General Insurance

Topics covered include policy features, exclusions, claims processes, and types of general insurance related to motor, property, and liability.

4. Regulatory Framework

Emphasis shall be placed on IRDAI’s functions, the IRDA Act of 1999, licensing norms, and policyholder protection regulations.

5. Financial Planning and Ethics

You will be subjected to client assessment, product suitability, ethical conduct, and simple numerical calculations.

6. Claims and Policy Servicing

Understand the documentation, timeframes, and processes required to manage life and health insurance claims.

Top IRDA Exam Questions to Practise in 2026

1. Insurance Principles

Which principle provides that the insurer compensates the policyholder to the extent of actual loss only?

A) Subrogation

B) Indemnity

C) Contribution

D) Insurable interest

Answer: B

Explanation: The principle of indemnity means policyholders cannot make a profit through insurance claims.

2. Life Insurance Products

Question: What type of policy offers both a death benefit and a survival benefit?

A) Term plan

B) Endowment plan

C) Riders

D) Money-back plan

Answer: B

Explanation: An endowment plan offers maturity benefits along with life cover.

3. Health Insurance

Question: What is the waiting period for pre-existing diseases in most health insurance policies?

A) 90 days

B) 1 year

C) 2–4 years

D) No waiting period

Answer: C

Explanation: PEDs usually have a waiting period of 2–4 years, depending on the insurer.

4. General Insurance

Question: Which of the following is considered a hazard in insurance?

A) A house situated in a flood-prone area.

B) A fire that burns a building

C) The Insured home itself

D) The insurance premium

Answer: A

Explanation: Hazard increases the probability of loss.

5. Regulatory Framework

Which entity, on behalf of IRDAI, conducts the IRDA exam?

A) National Insurance Academy

B) LIC of India

C) Insurance Institute of India

D) IRDAI regional offices

Answer: C

Explanation: The Insurance Institute of India administers the IRDA online.

6. Financial Planning

Question: A client wants completely risk-free and guaranteed returns on investment. Which product would you recommend?

A) ULIP

B) Term plan

C) Endowment policy

D) Mutual fund

Answer: C

Explanation: The returns in an endowment plan are guaranteed and low-risk.

7. Numerical Ability

Question: A health policy has a sum insured of ₹5,00,000. An insured makes a claim of ₹40,000 with a deductible of ₹5,000. How much will the insurer pay?

A) ₹40,000

B) ₹35,000

C) ₹5,000

D) ₹45,000

Answer: B

Explanatory: Insurer pays claim amount minus deductible 40,000 – 5,000 = ₹35,000.

8. Claims & Policy Servicing

Question: When does an insurer have to issue a policy document on receipt of the premium and the completed proposal form?

A) Within 7 days

B) Within 15 days

C) Within 30 days

D) No specific timeline

Answer: B

Explanation: IRDAI guidelines require insurers to issue the policy within 15 days.

9. Ethics & Conduct

Question: What should an agent do if a customer wants to purchase a policy they clearly do not need?

A) Sell it anyway.

B) Convince the client to buy a bigger policy

C) Explain why this policy does not cover their needs.

D) Nothing at all.

Answer: C

Explanations: Agents have the ethical responsibility to sell only suitable products.

10. Policyholder Rights

Question: What is the free-look period for health insurance policies in India?

A) 7 days

B) 15 days

C) 20 days

D) 30 days

Answer: B

Explanation: The insurance holders are provided with 15 days to go through the policy and cancel it if required.

Effective Preparation Tips for the IRDA Exam

• Complete Compulsory Training: IRDAI insists on 50 hours for life/general and 75 hours for composite agents.
• Updated Study Material: Ensure your resources reflect the syllabus updated in April 2023.
• Practice IC 38 Mock Tests: It improves speed, accuracy, and comfort with the examination-style questions.
• Manage Your Time: Aim for one minute per question.
• Know More: IRDAI circulars and updates in the insurance sector.
• Consistency: Establish a routine that incorporates the repetition of important subjects constantly.

Conclusion

Preparing for the IRDA Exam in 2026 requires dedication, but with smart preparation and regular practice, one can easily clear it. Master the concepts and go through the sample questions above to set the stage for stepping into a promising career in insurance.

Companies like ZFunds-and indeed all the leading insurers-rely on knowledgeable, ethical agents who can create value for their customers. With proper preparation and the right attitude, you can be one of them and help people secure their financial futures.

FAQs

1. What is the IRDA exam?

A. A license examination, which is mandatory for prospective insurance agents, is conducted by the Insurance Institute of India. 

2. What is the passing mark? 

A. A minimum of 18 out of 50 (35%) 

3. How many questions are asked? 

A. 50 multiple-choice questions. 

4. Is there negative marking? 

A. No. 

5. For how long is the license valid? 

A. Three years, after which time it is renewable with 25 hours of training. 

6. What are the eligibility criteria? 

A. Minimum age 18 years and qualification 10+2 years of schooling (10th pass in some rural areas); training is compulsory. 

7. Where can I access mock tests? 

A. Model test papers can be obtained at the Insurance Institute of India, training institutions, and IC-38 practice test series websites.