III IC-01: pattern, syllabus and full mock tests
The compulsory first paper of the Insurance Institute of India's Licentiate diploma - the foundation every insurance professional is tested on.
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IC-01 Principles of Insurance is the compulsory paper of the Licentiate, the entry-level professional diploma of the Insurance Institute of India (III). It covers what insurance is, risk, the principles that make an insurance contract work (utmost good faith, insurable interest, indemnity, subrogation, contribution and proximate cause), the legal aspects of insurance, underwriting, claims, reinsurance and insurance accounts. Passing earns 20 credit points towards the Licentiate, which insurers, brokers and TPAs recognise for career progression.
Eligibility Criteria
schoolEducation
Membership of the Insurance Institute of India (applied for online before registering for the exam). Check the current III Examination Handbook for any education requirement for your membership category.
cakeAge Limit
No separate age limit is prescribed for the paper; III membership rules apply.
flagNationality
Open to candidates in India; III also runs the exam for candidates abroad on its published terms.
Exam Pattern
IC-01 is an online objective paper of multiple-choice questions, 2 hours long, marked out of 100. III's handbook sets the pass mark at 60% for every MCQ paper and awards a distinction at 75%. All questions are to be attempted, and if a question is found erroneous it is removed and marks are pro-rated on the remaining ones. The handbook does not mention negative marking. The syllabus is III's Revised Edition 2024 courseware of 11 chapters, which III describes as indicative rather than exhaustive. III publishes no chapter-wise weightage; the four sections below are how PrepClever's mocks group the chapters, in proportion to their size.
IC-01 Principles of Insurance
Online (Computer-Based)120 min| Section | Questions | Marks |
|---|---|---|
| Introduction to Insurance and Risk (chapters 1-2) | 18 | 18 |
| Rating, Pricing and Principles of Insurance One and Two (chapters 3-5) | 27 | 27 |
| Principles Three, Legal Aspects and Underwriting (chapters 6-8) | 27 | 27 |
| Claims, Reinsurance and Insurance Accounts (chapters 9-11) | 28 | 28 |
Key Topics & Syllabus
Introduction to Insurance and Risk
- check_circleIntroduction to insurance: what it is, how it works, the Indian insurance market
- check_circleRisk, peril and hazard
- check_circleRisk classification and rating
Rating, Pricing and the Principles of Insurance
- check_circleRating and pricing insurance products
- check_circlePrinciples of insurance - one: utmost good faith and insurable interest
- check_circlePrinciples of insurance - two: indemnity and its application
Principles (Three), Legal Aspects and Underwriting
- check_circlePrinciples of insurance - three: subrogation, contribution and proximate cause
- check_circleLegal aspects of insurance: the contract, Insurance Act and related law
- check_circleUnderwriting
Claims, Reinsurance and Insurance Accounts
- check_circleClaims: intimation, investigation, settlement and disputes
- check_circleReinsurance: purpose, methods and treaties
- check_circleInsurance accounts
Career Roles & Salary
Insurance Company Executive
₹3 to 6 LPA (entry level)
Underwriting, claims, operations and customer-service roles at life and general insurers, where the Licentiate is the standard first professional qualification.
Broker / TPA Professional
₹3 to 7 LPA
Placement, servicing and claims roles at insurance brokers and third-party administrators, where III qualifications count towards IRDAI's training requirements.
Agent or Advisor moving up
Commission-based, uncapped
A licensed agent who adds the Licentiate signals professional depth to clients and insurers, and the paper covers the principles IC-38 only touches.
Path to Associate and Fellow
Senior roles, ₹8 LPA+
The Licentiate is the first of III's three diplomas; the Associateship and Fellowship that follow are recognised for promotions and specialist roles across the industry.
How to Prepare
Become an III member
Apply for membership of the Insurance Institute of India online; membership is required before you can register for a professional exam.
Register for IC-01 in an exam window
III publishes an examination calendar each year. Register for IC-01 within the window and pay the exam fee listed in the current handbook.
Study the IC-01 courseware
Work through the Revised Edition 2024 courseware's 11 chapters, making short notes on each principle of insurance and on the legal chapter.
Practise full-length mocks
Take timed 100-question mocks until you score comfortably above 60%, with extra repetition on claims, reinsurance and insurance accounts.
Sit the online exam
Attempt all questions in the 2-hour paper; a score of 60% or more passes, 75% or more earns a distinction.
Complete the Licentiate
Add IC-02 Practice of Life Insurance or IC-11 Practice of General Insurance plus one more paper to reach the 60 credit points the Licentiate needs.
Important Dates (Tentative)
| Event | Expected Date |
|---|---|
| Exam windows | Several times a year on III's published examination calendar |
| Registration | Opens before each window; late fee in the extended period |
| Result | Published on the III portal after the exam window |
* Dates are indicative based on historical patterns. Check the official website for confirmed dates.
Prepare for III IC-01 the smarter way
Free mock tests, chapter-wise practice questions and a personalized study plan, built around the latest III IC-01 pattern.
III IC-01 guides
- SyllabusThe IC-01 Principles of Insurance syllabus from III's Revised Edition 2024: all 11 chapters, from risk and the principles to claims, reinsurance and accounts.
- Exam PatternThe III IC-01 exam pattern: an online MCQ paper of 2 hours, 60% to pass, 75% for distinction, no negative marking, and the rules for erroneous questions.
- Eligibility & RegistrationWho can sit III's IC-01 exam (10th pass or 3 years at an insurer), how to register as a member, enrol for the paper, and book your exam slot online.
- Fees & ValidityIII IC-01 fees from 1 April 2026: ₹800 one-time registration with life membership, ₹600 per attempt, the study book, and how long credit points last.
- Exam DatesIII's 2026 exam schedule for IC-01 and every professional paper: the four sessions, enrolment windows, slot-booking dates, exam weekends and result dates.
- Previous Year PapersIII does not publish IC-01 past papers or answer sheets. What it does publish, what its demo test shows, and how to practise for the real paper.
- Study MaterialThe official IC-01 study course from III: the 2024 edition in English and Hindi at ₹350, the ₹150 eBook and ₹100 audiobook, and how to order them.
- PreparationA realistic IC-01 study plan: how to read the 11 chapters, which principles to drill with scenarios, when to start timed papers, and how to clear 60%.
- Hall Ticket & ResultHow to download your III exam hall ticket and result: when each appears, which portal to use (insuranceinstituteofindia.com or iiiexams.org) and what to do.
- Licentiate ExamHow the III Licentiate works: 60 credit points from IC-01, IC-02 or IC-11 and an optional such as IC-14, the life and general combinations, and how to enrol.
III IC-01 FAQ
What is III IC-01?
IC-01 Principles of Insurance is the compulsory paper of the Insurance Institute of India's Licentiate diploma. It carries 20 credit points and covers risk, the principles of insurance, the law of insurance contracts, underwriting, claims, reinsurance and insurance accounts.
What is the pass mark for IC-01?
60% and above, III's pass mark for every objective paper. 75% and above earns a distinction.
Is there negative marking?
III's Examination Handbook does not mention any negative marking for its professional exams and asks that all questions be attempted, so answer every question.
How many questions does IC-01 have?
The paper is marked out of 100 and the handbook's own wording is 60 marks out of 100; it is widely reported as 100 multiple-choice questions in 2 hours. The handbook does not print a question count for professional papers.
Which chapters carry the most marks?
III publishes no chapter-wise weightage. PrepClever's mocks spread the questions across the 11 chapters in proportion to their size, so every chapter gets practised.
How is IC-01 different from IC-38?
IC-38 is the agent licensing exam (50 questions, 35% pass mark) needed before you can sell insurance. IC-01 is a professional diploma paper that goes deeper into principles and law and needs 60% to pass.
What is free on PrepClever?
Real questions from the Claims, Reinsurance and Insurance Accounts chapters, in six free practice tests. The remaining chapters and the full 100-question mocks are premium.
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