Free Life and Health Insurance Exam Questions That Helps Candidates Pass

Agents have a fiduciary duty to act in the best interest of their clients. IC-38 emphasizes that agents must recommend suitable products, disclose material facts, and provide honest guidance. This ethical standard safeguards policyholders and sustains the industry’s credibility.

The IGMS is an IRDAI initiative to centralize and monitor complaint handling. IC-38 describes it as a digital platform that improves transparency and accountability in grievance redressal.

Critical illness plans pay a lump sum upon diagnosis of listed conditions, regardless of actual expenses. IC-38 differentiates them from indemnity policies, which reimburse actual hospitalization bills. Lump-sum benefits provide flexibility for treatment, recovery, or income replacement.

The principle of Subrogation gives insurers the right to pursue recovery from third parties after settling claims. IC-38 highlights this as essential to prevent unjust enrichment and distribute liability fairly.

According to IRDAI regulations, insurers must settle claims within 30 days of receiving all necessary documents. IC-38 stresses that timely claims settlement is critical for consumer trust. Delays beyond 30 days require insurers to pay interest on the claim amount. This provision ensures accountability, efficiency, and fairness in claims processing, reinforcing insurance as a reliable financial safety net.