Practise the way the III paper asks it.
Plain-language notes on life, health, motor, crop and property insurance, the regulator, and timed mock tests built on the Insurance Institute of India syllabus. Made for insurance employees, readable by anyone.
Learn the principles
Insurable interest, utmost good faith, indemnity, subrogation, contribution and proximate cause, each with an example you will meet at the branch.
Read the notes →Know the regulator
What IRDAI does, which Acts it works under, how a policyholder complains, and the 2024 rules on free-look, waiting periods and grievance timelines.
About IRDAI →Test yourself, timed
Seven mock tests across IC-01, life, health, motor, crop, property and regulation. One free sample per exam; full packs priced by exam. Every answer comes with an explanation.
Open mock tests →What insurance is, and how each line works
Insurance pools the premiums of many to pay the losses of the few. A contract of insurance is a promise by the insurer to indemnify (general insurance) or to pay a fixed sum (life insurance) on the happening of an uncertain event, in return for a premium.
Six principles every paper tests
Insurable interest
The insured must stand to lose financially if the event happens. In life insurance it must exist at inception; in marine at the time of loss; in fire and motor at both inception and loss.
Utmost good faith (uberrimae fidei)
Both parties must disclose every material fact. Non-disclosure or misrepresentation makes the contract voidable at the option of the insurer, within the limits of Section 45 of the Insurance Act for life policies.
Indemnity
The insured is placed in the same financial position as before the loss, no better. Applies to general insurance; life and personal-accident policies are benefit policies and pay an agreed sum.
Subrogation
After paying a claim the insurer steps into the insured's rights against the third party who caused the loss. A corollary of indemnity, so it does not apply to life insurance.
Contribution
When two or more indemnity policies cover the same loss, each insurer pays its rateable share; the insured cannot recover more than the loss.
Proximate cause
The insurer pays only if the dominant, efficient cause of the loss is an insured peril. Storm blows down a wall that damages stock: proximate cause is storm.
The five lines on this site
Life insurance
Term (pure protection), endowment (death or maturity), whole life, money-back, ULIPs (market-linked, 5-year lock-in) and annuities. Key law: Insurance Act 1938 Sections 38 (assignment), 39 (nomination) and 45 (no policy questioned after 3 years). Grace period 30 days (15 days for monthly mode).
Health insurance
Indemnity plans reimburse hospitalisation; fixed-benefit plans pay a sum per day or per illness. Since the 2024 IRDAI master circular: pre-existing disease waiting period not more than 36 months, moratorium 60 months, cashless authorisation within 1 hour and final discharge authorisation within 3 hours. Portability lets you move insurer with continuity credit.
Motor insurance
Third-party liability cover is compulsory under Section 146 of the Motor Vehicles Act 1988; own-damage cover is optional. Sum insured is the Insured Declared Value (IDV). No Claim Bonus goes up to 50% after five claim-free years and belongs to the owner, not the vehicle. New private cars carry 3-year TP cover; new two-wheelers 5-year.
Crop insurance (PMFBY)
Area-yield scheme: farmer pays at most 2% of sum insured for Kharif, 1.5% for Rabi and 5% for commercial/horticultural crops; the balance is government subsidy. Threshold yield = average of the best 5 of the last 7 years' yields × indemnity level (70/80/90%). Losses are measured by crop-cutting experiments; localised calamities and post-harvest losses are assessed on individual farms, intimated within 72 hours.
Property and fire insurance
Standard fire policies cover fire, lightning, explosion, aircraft damage, riot/strike/malicious damage, storm, flood, impact damage, subsidence, bush fire and bursting of tanks. Standard products since 2021: Bharat Griha Raksha (homes), Bharat Sookshma Udyam Suraksha (SI up to ₹5 crore) and Bharat Laghu Udyam Suraksha (₹5–50 crore). Under-insurance attracts the average clause.
Terms you will be asked
- Peril
- The cause of loss (fire, flood).
- Hazard
- A condition that increases the chance or size of loss.
- Deductible / excess
- First part of every claim borne by the insured.
- Co-payment
- Fixed percentage of each health claim borne by the insured.
- Reinstatement value
- Cost of replacing with new, without deduction for depreciation.
- Floater
- One sum insured shared across several locations or family members.
IRDAI, the Acts, and how a policyholder is protected
What IRDAI is
The Insurance Regulatory and Development Authority of India was set up under the IRDA Act 1999 and is headquartered in Hyderabad. It registers insurers and intermediaries, approves products, prescribes solvency (a control level of 150%), protects policyholders and promotes orderly growth of the industry.
The legal frame
- Insurance Act 1938
- Principal statute: registration, capital, investments, assignment, nomination, Section 45.
- IRDA Act 1999
- Creates the Authority and its powers.
- Motor Vehicles Act 1988
- Compulsory third-party insurance (Ch. XI).
- Marine Insurance Act 1963
- Codifies marine cover and insurable interest at loss.
- Public Liability Insurance Act 1991
- Compulsory cover for hazardous units.
Policyholder protections (2024 regulations)
Free-look period of 30 days for every policy with a term of one year or more. Insurers must acknowledge a grievance immediately and resolve it within 14 days. Health policies: PED waiting period capped at 36 months, moratorium at 60 months, no claim can be contested after the moratorium except for fraud. Nominee and assignment rights follow Sections 39 and 38 of the Act.
How to complain
1. Insurer's Grievance Redressal Officer. 2. If unresolved in 14 days, IRDAI's Bima Bharosa portal or toll-free 155255. 3. Insurance Ombudsman (17 offices) for disputes up to ₹50 lakh; the award is binding on the insurer. 4. Consumer Commission or civil court for other matters.
Who sells insurance
Individual agents (one life, one general, one health insurer; IC-38 exam by III), corporate agents (up to 3 insurers in each line, raised to 9 in 2022), brokers, web aggregators, insurance marketing firms, point-of-sale persons and the insurers' own staff. Banks sell as corporate agents (bancassurance).
Institutions you will meet
- III
- Insurance Institute of India, Mumbai: Licentiate, Associateship, Fellowship exams.
- IIB
- Insurance Information Bureau: industry data, motor and health databases.
- GI Council / Life Council
- Self-regulatory bodies of general and life insurers.
- TAC (historic)
- Tariff Advisory Committee; tariffs withdrawn from 2007 except motor TP.
- Agriculture Insurance Co.
- Public-sector crop insurer; PMFBY lead in many states.
Figures above are as notified by IRDAI up to 2024. Regulations change; the exam follows the version in force on the exam date, so re-check the IRDAI website (irdai.gov.in) before you sit.
Timed practice, with explanations
Each mock has 8 questions and 12 minutes, scored like the III papers: 60% to pass. Two tests are free samples; the rest unlock with the pack for your exam (see Pricing). Sign in so results are saved. Flag a question to come back to it.
Quick practice sets
Pay only for the exam you are sitting
Every exam has one free sample test. A pack unlocks all mock tests for that exam for 3 months, with new tests added free as the bank grows. Prices include GST.
How payment works
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Terms of use
BimaPrep is an independent educational service. It is not affiliated with, endorsed by or connected to the Insurance Regulatory and Development Authority of India, the Insurance Institute of India or any insurer. Study notes and mock questions are original work prepared from public sources (Acts, IRDAI regulations and circulars, III syllabi); exam papers are not reproduced.
Content is for preparation only. We take care to keep it accurate and current, but regulations change and we do not guarantee results in any examination. Always confirm with the official notification before an exam.
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Refund policy
Packs are non-refundable once purchased, since the content is available immediately.
A refund is made only for a failed transaction: the amount was debited and received by us but the pack did not activate on your account. Email knowyourrights1947@gmail.com with the transaction ID; after verification the amount is returned to the original payment method within 7 working days.
Contact
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Last updated: 25 October 2026.
Built by insurance people, for insurance people
Why BimaPrep
Most of us learn insurance on the job, one policy and one claim at a time. The III papers ask for the same knowledge in an orderly way. BimaPrep puts the syllabus into short notes you can read on a phone between branch visits, and mock tests that behave like the real paper.
Who it is for
Employees of public and private insurers preparing for Licentiate, Associateship or Fellowship; agents and bank staff preparing for IC-38; and anyone who wants to understand the policy they have bought.
How the content is prepared
Notes follow the III study courses and IRDAI regulations and circulars. Every mock question is written by us and carries an explanation with the rule it tests. When a regulation changes, the note and the question change with it, with the date shown.
Contact
Suggestions, corrections and requests for new topics are welcome. We reply within two working days.
knowyourrights1947@gmail.com
BimaPrep is an independent educational project and is not affiliated with IRDAI, the Insurance Institute of India or any insurer.
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