Summary of "IC 38 New Syllabus | Top 50 MCQ Series of 2025 - 26| Part - 1 |Insurance Agent Exam| Er. Aman Thakur"

Summary of IC 38 New Syllabus | Top 50 MCQ Series of 2025-26 | Part - 1 | [Insurance Agent](https://www.amazon.com/dp/0692755772?tag=dtdgstoreid08-20) Exam | Er. Aman Thakur

This video is the first part of a series covering the top 50 multiple-choice questions (MCQs) based on the new IC 38 syllabus for the [insurance agent](https://www.amazon.com/dp/0692755772?tag=dtdgstoreid08-20) exam in 2025-26. The instructor, Er. Aman Thakur, explains important concepts, definitions, and principles related to insurance, focusing on questions likely to appear in the exam. The content is delivered in a clear, step-by-step manner with explanations of answers and reasoning behind them.

Main Ideas, Concepts, and Lessons

1. Regulator of Insurance Industry in India

The Insurance Regulatory and Development Authority of India (IRDAI) is the regulator.

2. Scenarios Warranting Insurance

Insurance is most crucial when the sole breadwinner of a family dies untimely.
Loss of wallet, stock price fall, or natural wear and tear of house do not warrant insurance.

3. Primary and Secondary Burden of Risk

Secondary burden of risk refers to costs like setting aside reserves for future losses.
Primary burden relates to immediate costs like business interruption or hospitalization.

4. Method of Risk Transfer

Insurance is the correct method to transfer risk.
Bank FD, equity shares, or real estate do not transfer risk.

5. Government-Sponsored Insurance Schemes

PM Jan Arogya Yojana (Ayushman Bharat), PM Crop Insurance Scheme, and PM Security Insurance Scheme are all government-sponsored.

6. Principles on Which Insurance Works

Insurance works on sharing of losses, probabilities, large numbers, and randomness.
All these principles collectively explain how insurance functions.

7. Risk Transfer through Risk Pooling (Cooling)

Risk pooling involves collecting risks from many insured people and sharing losses.
This is the basis of insurance.

8. Risk Management Techniques

Loss prevention: Measures to reduce the chance of risk occurrence.
Risk retention: Deciding to bear the risk and its effects oneself.
Risk transfer: Transferring risk to another party (insurance).
Risk avoidance: Avoiding the risk altogether.

9. Definition and Examples of Risk

Risk includes damage to property, health, life, environmental hazards affecting neighbors.
Risk is the chance of loss; the cause of risk is called hazard.

10. Insurance Intermediaries and Licensing

Insurance brokers, agents, third-party administrators, and surveyors all require IRDAI licenses.

11. Advantages of Cash Value Insurance Contract

Provides secure investment.
Other options like returns affected by inflation or low accumulation in early years are disadvantages.

12. History of Insurance

First insurance contract: Marine insurance by European maritime nations in 1347.
First fire insurance company: Fire Office, established by Dr. Nicholas Barbon in 1668.
Great Fire of London in 1666 boosted fire insurance business.
Modern insurance business originated at Lloyd’s Coffee House, London.

13. Benefits of Insurance

Provides peace of mind by transferring risk to insurer.
Insurance pays compensation when loss occurs; it does not prevent loss.

14. Family Floater Insurance

Related to health insurance covering the entire family.

15. Role of Insurance Agent

Agents act on behalf of the insurance company when collecting premiums.

16. Types of Insurance Policies

Single premium policy: one-time premium payment.

17. Principle of Contribution

If a property is insured with multiple insurers, compensation is paid collectively but not exceeding actual loss.

18. Principle of Subrogation

Transfer of rights and remedies from insured to insurer after claim settlement.

19. Consumer Protection and Grievance Redressal

Consumer Protection Act covers complaints against various goods and services.
Consumer complaint jurisdiction depends on claim amount:
- Up to ₹50 lakh: District Forum
- ₹50 lakh to ₹2 crore: State Commission
- Above ₹2 crore: National Commission
Insurance complaints can be lodged via IRDAI’s IGMS (Integrated Grievance Management System) or Insurance Ombudsman.
Insurance Ombudsman has territorial jurisdiction and handles small claims without fees or lawyers.

20. Ethical Behavior in Insurance

Ethical behavior includes adequate disclosure, confidentiality, and placing client interest above self-interest.
Placing self-interest first is unethical.
Ethical behavior builds trust between agent and insured.

21. Active Listening

Involves paying attention, nodding, smiling, and providing feedback.

22. Mandatory Insurance in India

Motor Third Party Liability Insurance is mandatory.

23. Numerical Example on Risk Sharing

Loss distributed among many homeowners reduces individual burden.
Example: For 500 houses with combined loss of ₹1 lakh, each homeowner contributes ₹200 annually.

24. Miscellaneous Concepts

Intangible goods: Insurance is intangible, unlike physical goods like mobile phones or jeans.
Insurance is a service; cleverness is not an indicator of service quality.
Risk retention means bearing risk knowingly (e.g., wearing a helmet while riding).
Insurance does not prevent loss but compensates after loss.
Customer Lifetime Value refers to economic benefits from long-term customer relationships.

Methodology / Instructional Approach (How to Answer MCQs)

Read the question carefully.
Understand the key concept or scenario.
Analyze all options before selecting the correct answer.
Relate the question to fundamental insurance principles.
Use elimination for incorrect options.
For numerical questions, apply basic arithmetic carefully.
Pay attention to keywords like “NOT” or “EXCEPT” in questions.
Remember historical facts and important definitions.
Understand the role and functions of insurance agents, intermediaries, and regulatory bodies.

Speakers / Sources Featured

Er. Aman Thakur – Instructor and presenter of the video content.

This summary encapsulates the core insurance concepts, principles, and exam-focused guidance delivered by Er. Aman Thakur in the video. It serves as a concise study aid for candidates preparing for the IC 38 [insurance agent](https://www.amazon.com/dp/0692755772?tag=dtdgstoreid08-20) exam.