Being an insurance advisor is a lucrative career opportunity. You can earn limitless commissions on the plans you sell and work at your convenience. However, becoming an advisor requires you to clear an exam. The insurance advisor exam is prescribed by the IRDAI (Insurance Regulatory and Development Authority of India) and individuals who clear it can get a license to act as an insurance advisor.
The traditional insurance exams in India
In order to become an insurance advisor with the insurer directly, you need to clear the IC 38 examination. This is the traditional way to become an insurance advisor and then earn commissions for the policies sold. You can sell insurance policies of only that insurance company with which you are enrolled as an insurance advisor.
Let’s understand the details about this insurance advisor exam –
Eligibility requirement for insurance exam IC 38
To apply for becoming an advisor and sit for the exam you should qualify on some eligibility parameters. Only if you meet the specified eligibility criteria can you appear for an insurance advisor’s exam and get your license. Here are the basic criteria required to be met –
- You should be at least 18 years old
- You should have passed Class 10th.
Insurance advisor exam preparations
Preparations for the insurance advisor exam are simple. There is a certification course prescribed by the IRDAI. Training is provided by authorized institutions which equip you with the basic syllabus of the examination conducted. You understand the basics of insurance and its important concepts. As per the IRDAI prescribed insurance exam syllabus, you are taught the following –
- The concept of insurance, its need and purpose.
- The important terms associated with insurance like risk, peril and hazard.
- The insurance market and its channels.
- The principles of insurance.
- How to sell, etc.
If you take the training properly, understand the insurance concepts and arm yourself with the knowledge about insurance industry, your exam preparations would be done and you can easily clear the insurance advisor’s exam.
Structure of the insurance advisor exam
The insurance advisor’s exam is conducted online. It is a 50-mark questionnaire containing multiple-choice questions. You have to score at least 33% marks to clear the examination and be eligible for an insurance advisor’s license.
Some of the sample questions which feature in the online insurance advisor exam are as follows –
- Who is entitled to receive the death benefit under a life insurance policy?
- Policyholder
- Nominee
- Any of the above
- None of the above
- Which is a pure protection insurance plan?
- Endowment plan
- ULIP
- Term insurance
- Money back plan
- In case of an investigation into the cause of death in a death claim, the company gets a maximum of —– to complete its investigation
- 3 years
- 6 months
- 1 year
- 10 months
Importance of insurance advisor exam
The Insurance Regulatory and Development Authority (IRDAI) have mandated every advisor to be certified before being able to sell insurance. This certification can be obtained only through the insurance advisor’s exam.
The main reason for this examination is to ensure that trained and knowledgeable individuals sell insurance.
Since insurance is a technical concept, knowledge of its technicalities can be possessed only by individuals who have taken a course in insurance study.
The insurance advisor’s exam tests the insurance knowledge acquired by prospective insurance advisors. Only those individuals who clear the test can get their license.
Licensed advisors are in a better position to sell the right insurance product to a client because they have the correct knowledge at their disposal.