Answers you should know if you want to crack Insurance Agent Exam

Cracking the Insurance Agent Exam – the Basics

Want to be an insurance agent and preparing for the exam? Here is what you should know about the examination as granted by Insurance Regulatory and Development Authority of India (IRDAI).

Answers you should know if you want to crack Insurance Agent Exam

The basics of insurance

The first concept which you should understand is the purpose and meaning of insurance also how it works. You should know the important terms, the concept of insurable interest, benefits of the policy and exclusions.

Knowledge of the insurance market

The second important thing which you should know is the insurance market. The distributors are broadly classified as general insurance companies, life insurance companies, the insurance brokers, the aggregators, the agents and POSP. Understand how insurance is sold through different channels and choose what fits you the best. Besides knowing the distribution channel, you should also know the companies which will give you a fair understanding of where you can start your journey.

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Principles of insurance

Insurance is a legal contract governed by some unique principles. These include the principle of utmost good faith, principle or insurable interest and the principle of indemnity. A good knowledge of these principles is essential if you want to crack the insurance agents’ exam.

Types of insurance policies

There are two types of insurance in India – life and general insurance. Before you sell a policy, arm yourself with a good amount knowledge of each type of the different types of plans in both life and general category.

The benefits payable under the policy

To be a successful agent who also can handle claims request, it is important that you understand and help your clients know the benefits for which the insurance policy they purchased offers coverage. Briefly,  a life policy offers compensation on death or after maturity of the policy. A general policy offers compensation when the insured asset or person suffers a loss or injury because of an unforeseen event.


You should know about the Know your client (KYC) documents required to process each policy and claim request and Anti-money Laundering (AML) guideline. Along with it as insurance is highly regulated, you need to know about the ways in which premium should be collected. Ask for your contact for more details.

Grievance redressal

To crack the exam and be the best agent, the last and the most important part is to know how to handle complaints from consumers or policyholders. Thus how to handle such grievances on behalf of your customers is important to know. The policyholders can approach the insurance company, the IRDAI, the ombudsman and also consumer courts with their disputes.

You should have a good knowledge and understanding of these topics before you appear for the insurance agents’ exam. The examination is not very hard to crack if you know the above concepts. After you clear the exam you will be granted a license which will give you rights to sell insurance.