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100+ Free III IC-88 Practice Questions

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2026 Statistics

Key Facts: III IC-88 Exam

100

Online MCQs per paper

III Examination Handbook

2 hours

Exam duration

III Examination Handbook

60%

Passing mark (75% Distinction)

III Examination Handbook

30

Credit points for IC-88

III credit-point system

INR 600

India paper fee (30 credits) w.e.f. 1.4.2026

III Table of Fees

INR 800

Fresh registration (India) w.e.f. 1.4.2026

III Table of Fees

III IC-88 is a 100-question, 2-hour online MCQ paper (30 credits) on Marketing and Public Relations. Passing requires 60% (Distinction from 75%). India paper enrollment is INR 600 w.e.f. 1.4.2026, plus INR 800 registration for fresh candidates (taxes extra).

Sample III IC-88 Practice Questions

Try these sample questions to test your III IC-88 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which of the following best describes the core concept of marketing in the insurance sector?
A.Identifying and satisfying customer needs profitably
B.Maximising short-term premium income regardless of customer fit
C.Using public relations as the only tool to grow the business
D.Designing products first and finding buyers later without research
Explanation: The core concept of marketing is identifying and satisfying customer needs profitably. In insurance, this means understanding what risks customers face and providing products that manage those risks effectively.
2What is the primary purpose of market segmentation in insurance?
A.To increase the overall cost of marketing campaigns.
B.To divide a broad target market into subsets of consumers with common needs.
C.To eliminate competition in the market.
D.To standardize all insurance products.
Explanation: Market segmentation involves dividing a broad target market into subsets of consumers who have common needs and priorities, allowing for tailored marketing strategies and product offerings.
3Which feature most characterises rural insurance markets in India for marketing planners?
A.Uniform high digital literacy and dense branch networks everywhere
B.Dispersed populations, seasonal incomes, lower formal literacy, and limited access to conventional urban channels
C.Identical buying behaviour to metro high-net-worth customers
D.No regulatory interest in rural penetration
Explanation: Rural markets are geographically dispersed with seasonal cash flows, literacy and trust constraints, and thinner traditional distribution—requiring adapted products, communication, and channels.
4The 'Product Life Cycle' consists of which four distinct stages?
A.Awareness, Interest, Desire, Action
B.Creation, Marketing, Sales, Profit
C.Introduction, Growth, Maturity, Decline
D.Idea, Development, Testing, Launch
Explanation: The typical Product Life Cycle consists of four stages: Introduction, Growth, Maturity, and Decline. These stages describe a product's sales and profit trajectory over time.
5In the context of the marketing mix for services, what do the '3 Ps' added to the traditional '4 Ps' stand for?
A.Profit, Position, Packaging
B.People, Process, Physical Evidence
C.Planning, Preparation, Performance
D.Publicity, Promotion, Placement
Explanation: The extended marketing mix for services adds People, Process, and Physical Evidence to the traditional 4 Ps (Product, Price, Place, Promotion).
6Why is 'Physical Evidence' an important part of the insurance marketing mix?
A.It is a legal requirement for all insurance policies.
B.Insurance is a tangible product that customers need to touch and feel.
C.It provides tangible cues about the quality of the intangible insurance service.
D.It determines the final premium amount.
Explanation: Since insurance is an intangible service, physical evidence (like policy documents, office aesthetics, website design) provides tangible cues to help customers assess service quality and build trust.
7Which strategy involves setting a high initial price for a new insurance product and gradually lowering it over time?
A.Cost-Plus Pricing
B.Price Skimming
C.Predatory Pricing
D.Penetration Pricing
Explanation: Price Skimming is a strategy where a firm charges the highest initial price that customers will pay and then lowers it over time to attract more price-sensitive segments.
8What does 'Penetration Pricing' aim to achieve in the insurance market?
A.To maximize short-term profits on a new product.
B.To target only the high-income segment of the market.
C.To cover all development costs immediately.
D.To rapidly gain a large market share by setting a low initial price.
Explanation: Penetration pricing sets a low initial price to attract a large number of buyers quickly and win a large market share, especially useful when entering a competitive market.
9In insurance distribution, what is a 'Bancassurance' model?
A.Selling insurance solely through digital channels.
B.An arrangement where a bank and an insurance company partner to sell insurance products to the bank's client base.
C.A regulatory framework governing insurance agents.
D.Providing insurance coverage only to banking institutions.
Explanation: Bancassurance is an arrangement in which a bank and an insurance company form a partnership so that the insurance company can sell its products to the bank's client base.
10Which of the following is considered a 'Direct' channel of distribution for insurance products?
A.Brokers
B.Company's own website
C.Bancassurance
D.Corporate Agents
Explanation: A company's own website is a direct distribution channel as the product is sold directly from the insurer to the customer without intermediaries.

About the III IC-88 Exam

The III IC-88 Marketing and Public Relations exam (30 credits, online MCQ) tests marketing and PR applied to insurance across nine syllabus chapters: Introduction to Insurance; Introduction to Marketing; Consumer Behavior; Introduction to Services; Quality in Services; Strategies for Insurance Marketing I & II; Rural Markets; and Consumerism and Social Responsibility.

Assessment

100 objective multiple-choice questions in a single online paper. IC-88 is a 30-credit paper under the Insurance Institute of India (III) professional credit system.

Time Limit

2 hours

Passing Score

60% (Distinction at 75% or above)

Exam Fee

INR 600 per subject (30 credit points) for India candidates; fresh candidates also pay INR 800 registration (inclusive of life membership). Taxes extra. Fees w.e.f. 1.4.2026 per III Table of Fees. (Insurance Institute of India (III))

III IC-88 Exam Content Outline

8 questions

Introduction to Insurance

Role of insurance in the economy, risk pooling, life vs non-life, utmost good faith, insurable interest, indemnity, and why trust and reputation matter for insurers.

9 questions

Introduction to Marketing

Marketing concept vs selling, marketing mix, segmentation, targeting, positioning, branding, research, and planning tools applied to insurance.

10 questions

Consumer Behavior

Needs and wants, buying decision process, perception, involvement, cognitive dissonance, household influencers, and insurance-specific purchase behaviour.

8 questions

Introduction to Services

Service characteristics (intangibility, inseparability, variability, perishability) and the extended 7Ps including people, process, and physical evidence.

11 questions

Quality in Services

SERVQUAL dimensions, gap model, moments of truth, reliability and responsiveness, and measuring service quality in insurance.

18 questions

Strategies for Insurance Marketing — I

Product life cycle, pricing strategies, distribution channels (agents, brokers, bancassurance, digital), and promotional mix.

16 questions

Strategies for Insurance Marketing — II

Relationship marketing, CRM metrics, cross-selling and up-selling, internal marketing, and integrated communications/PR tools.

8 questions

Rural Markets

Rural market characteristics, microinsurance, local distribution, IRDAI rural/social obligations, seasonal incomes, and vernacular communication.

12 questions

Consumerism and Social Responsibility

Consumer rights, disclosure, mis-selling and unfair practices, Ombudsman redress, ethics, CSR, and socially responsible insurance marketing.

How to Pass the III IC-88 Exam

What You Need to Know

  • Passing score: 60% (Distinction at 75% or above)
  • Assessment: 100 objective multiple-choice questions in a single online paper. IC-88 is a 30-credit paper under the Insurance Institute of India (III) professional credit system.
  • Time limit: 2 hours
  • Exam fee: INR 600 per subject (30 credit points) for India candidates; fresh candidates also pay INR 800 registration (inclusive of life membership). Taxes extra. Fees w.e.f. 1.4.2026 per III Table of Fees.

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

III IC-88 Study Tips from Top Performers

1Study the official III IC-88 coursebook (Revised Edition 2016) chapter by chapter: Intro Insurance through Consumerism & Social Responsibility.
2Drill rural markets and consumerism/ethics items—these chapters are easy to under-weight in generic marketing banks.
3Sit full 100-question, 2-hour mocks aiming above 60%, with Distinction practice at 75%+.

Frequently Asked Questions

How many questions are on the III IC-88 exam?

III objective papers, including IC-88, consist of 100 multiple-choice questions completed in 2 hours online.

What is the IC-88 passing score and credit value?

Passing marks are 60% or above (Distinction at 75%+). IC-88 carries 30 credit points under the III professional examination system.

What chapters does the IC-88 syllabus cover?

Official contents (Revised Edition 2016): Introduction to Insurance; Introduction to Marketing; Consumer Behavior; Introduction to Services; Quality in Services; Strategies for Insurance Marketing I & II; Rural Markets; and Consumerism and Social Responsibility.