If you are planning to build a career in insurance, the first step is clearing the IRDAI licensing exam. It is a key requirement for legally selling insurance products in India.
For many beginners, two things matter the most at the start. One is understanding the IRDA insurance agent exam fees, and the other is preparing well using the right insurance agent test questions. These two aspects often decide how smoothly your journey begins.
The good part is that the process is quite straightforward. The fees are affordable, and the exam focuses on practical knowledge. So, if you prepare right, you can actually crack the exam on the first go itself and become an insurance agent. Read this guide to learn all the details you need.
IRDA Insurance Agent Exam Fees 2026
The IRDA insurance agent exam fees are structured to keep entry simple while covering registration, training, and licensing.
Registration And Exam Fees
The fee structure is straightforward and includes both registration and examination charges.
- Registration fee is ₹700
- Exam fee is ₹500 per subject
- Composite agent exam fee ranges between ₹1,000 and ₹1,200 for life and general combined
The registration fee is paid once, while the exam fee depends on the number of subjects you choose.
Training Fees
Training is compulsory before appearing for the exam. Now, the most important thing to know here is that the cost will be based on the mode and duration.
For life or general insurance with 50 hours of training:
- Online training costs between ₹150 and ₹500.
- Classroom training costs between ₹2,000 and ₹5,000.
For composite insurance with 75 hours of training:
- Online training costs between ₹300 and ₹800.
- Classroom training costs between ₹3,000 and ₹7,000.
Online training is more cost-effective, while classroom training offers structured support and interaction.
Exam Overview
Before appearing for the exam, it is important to understand its format and requirements.
- The exam consists of 50 MCQs.
- Each question carries 1 mark.
- Minimum 40% marks is required to pass.
- The exam is conducted only in online mode.
- The licence remains valid for 3 years.
The exam focuses on practical understanding, so practising with insurance agent test questions can make a clear difference in your preparation.
25 Must-Know Test Questions
When you prepare for the insurance agent exam, you must also understand that there will be some common questions and some will be based on the level and subject you chose. Now, the questions shared will be in MCQ format. So, you would just need to pick the right option from the four before you.
Here are some of the most common questions.
| S.No. | Question | Option 1 | Option 2 | Option 3 | Option 4 | Correct Answer |
|---|---|---|---|---|---|---|
| 1 | The main purpose of insurance is to | Maximize investment returns for customers | Transfer risk from an individual to an insurer | Eliminate the possibility of loss | Increase the insured’s income | Option 2 |
| 2 | The principle of utmost good faith requires | Only the insurer to disclose all material facts | Only the agent to disclose all material facts | Both proposer and insurer to disclose all material facts truthfully | Only the proposer to disclose their name and address | Option 3 |
| 3 | Insurable interest in life insurance must exist | Only at the time of claim | Only at policy maturity | At the time of taking the policy | At the time of surrender only | Option 3 |
| 4 | Which type of policy is primarily designed for pure risk protection with no savings element | Endowment policy | Money-back policy | Term insurance policy | Whole-life with bonuses | Option 3 |
| 5 | The principle of indemnity ensures that the insured | Always makes a profit from a claim | Is restored to the same financial position as before the loss | Receives double the amount of the loss | Never pays any premium | Option 2 |
| 6 | Proximate cause refers to | The farthest cause of loss | The nearest and most effective cause of loss | The amount of premium payable | The amount of commission payable | Option 2 |
| 7 | In health insurance, “waiting period” generally means | Time taken to settle a claim | Time before policy renewal | Initial period when specified diseases are not covered | Time allowed for premium payment after due date | Option 3 |
| 8 | In insurance terminology, “sum assured” generally refers to | The total premium payable in the policy term | The guaranteed benefit payable under a life policy | The insurer’s annual profit | The total claim amount paid in a year | Option 2 |
| 9 | Which of the following is a key feature of a term insurance plan | Guaranteed maturity benefit | Pure death benefit with no survival value | Regular money-back payouts during the term | In-built health insurance cover | Option 2 |
| 10 | The full form of IRDAI is | Insurance Regulation and Development Authority of India | Investment Regulatory and Development Agency of India | Indian Risk and Development Association of Insurance | Insurance Rating and Development Agency of India | Option 1 |
| 11 | IRDAI’s primary objective is to | Fix interest rates on bank deposits | Protect policyholders’ interests and regulate the insurance industry | Decide salaries of insurance agents | Issue shares of insurance companies | Option 2 |
| 12 | The IC 38 exam is conducted for | Chartered accountants | Prospective insurance agents | Bank branch managers only | Mutual fund distributors only | Option 2 |
| 13 | The IC 38 insurance agent exam is | A descriptive written exam with essays | An oral interview conducted by IRDAI | A computer-based multiple-choice test | A practical field survey test | Option 3 |
| 14 | The “free look period” in a life insurance policy allows the policyholder to | Change the sum assured anytime | Return the policy within a specified period and get premium refunded (with deductions) | Stop paying premium permanently without any impact | Get a loan on the policy from day one | Option 2 |
| 15 | “Grace period” in premium payment refers to | Extra time given after due date to pay premium without losing benefits | Time allowed for making a claim | Time taken for underwriting | Waiting period for pre-existing diseases | Option 1 |
| 16 | In life insurance, “nomination” primarily deals with | Transferring ownership of the policy to another person | Authorizing a person to receive policy proceeds on death of life assured | Appointing the agent for the policy | Changing the premium payment term | Option 2 |
| 17 | In health insurance, “cashless claim” means | Claim is paid in cash only at the insurer’s office | The insured pays full bill and later gets reimbursement | Hospital settles bills directly with insurer or TPA as per policy terms | No documents are required for claim | Option 3 |
| 18 | Mis-selling in insurance generally means | Selling policies online | Selling a policy by giving false information or hiding important terms | Selling policies through multiple agents | Selling policies at a discount | Option 2 |
| 19 | The primary duty of an insurance agent towards a prospect is to | Sell the costliest product | Focus only on commission income | Understand the customer’s needs and recommend suitable cover | Avoid giving any written information | Option 3 |
| 20 | In life insurance, “assignment” of a policy means | Nominating a family member | Transferring rights and benefits of the policy to another person or entity | Increasing the sum assured | Adding a rider to the policy | Option 2 |
| 21 | Which of the following is usually a pre-existing disease in health insurance | Disease that occurs after policy issuance | Any illness first detected after claim | Illness or condition that existed before policy inception | Minor injuries due to accident | Option 3 |
| 22 | Moral hazard in insurance refers to | Natural disasters causing loss | Increase in risky behavior because the person is insured | Changes in interest rates | Legal changes affecting policies | Option 2 |
| 23 | Which one is typically a mandatory insurance in India | Householder’s insurance | Motor third-party liability insurance | Jewelry insurance | Travel insurance | Option 2 |
| 24 | Before suggesting a policy, an agent should collect information about | Only the customer’s age | Age, income, dependants, existing cover and financial goals | Only the customer’s occupation | Only the customer’s bank account details | Option 2 |
| 25 | If an agent knowingly submits false documents to procure a policy, this can lead to | Extra commission | No impact on anyone | Disciplinary action, cancellation of licence, and legal consequences | Automatic promotion | Option 3 |
Final Thoughts
Starting your journey as an insurance agent is simpler than it may seem. With a clear understanding of the IRDA insurance agent exam fees and regular practice using the right insurance agent test questions, you can prepare with confidence and avoid common mistakes.
The exam is designed to test your practical understanding, and this helps you to get the right start. And if you are new and looking to start your journey, then register with Choice Connect today and get all the support you need.
FAQs
1.What is the hardest insurance exam to pass?
Every insurance exam is hard, but the level may vary. But for many students, health insurance is comparatively complicated and difficult to pass.
2.What are the 4 P's of life insurance?
The 4 P's of life insurance include Product, Price, Placement, and Promotion. These are the keys that agents use to sell the policies.
3.What is the best way to study for the insurance exam?
The best way to study for the insurance exam is to check last year's papers. You must also take test exams, as this will help with confidence.
4.What are the six pillars of insurance?
The six basic principles are insurable interest, utmost good faith, proximate cause, indemnity, subrogation, and contribution.
5.What are the 5 elements of insurance?
The five key elements of an insurance policy are declarations, insuring agreement, definitions, conditions, and exclusions.
6.What are the four types of general insurance?
The main types of general insurance include motor insurance, health insurance, travel insurance, and home insurance.
