III IC-26: pattern, syllabus and full mock tests
A paper of the Insurance Institute of India's Associateship diploma.
- Full-length III IC-26 mock exams on the real question pattern
- Practice on the actual online exam interface you'll see on test day
- Weak & strong area analysis after every mock
- Exam readiness score that tracks your preparation, not guesses
You save ₹250
- Full 100-question mocks
- Chapter-wise practice
- Section-wise sets
One payment, no subscription · Valid for 1 month
Access exam-specific mock tests directly from your Android device.IC-26 Life Insurance Finance is a paper of the Insurance Institute of India's Associateship diploma. Its syllabus covers Accounting Principles, Life Policy Types and Premium Accounting, Disbursements, Expenses of Management and Investments, Final Accounts, Budgeting, Financial Reporting and Accounting Standards, Financial Analysis and Financial Management in Insurance and Taxation and Anti-Money Laundering.
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-26 Life Insurance Finance is an online objective paper of multiple-choice questions, 2 hours long, marked out of 100. III's Examination Handbook sets the pass mark at 60% for every MCQ paper, awards a distinction at 75%, and expects all questions to be attempted; it mentions no negative marking. The syllabus (Revised Edition 2023) runs to 15 chapters, covering Elementary Principles of Accounts, Life Assurance Business: Important Types of Life Assurance Policies, Accounting Procedures - Premium Accounting, Accounting Procedures - Disbursements, Accounting Procedure: Expenses of Management, Investments, Final Accounts: Revenue Account and Balance Sheet, Budget and Budgetary Control, Innovative Concepts in Financial Reporting, Accounting Standards (Applicable to Life Insurance Companies), Financial Analysis, Management Environment in India, Application of Financial Management Concepts in Insurance Industry, Taxation (Current Scenario) and Anti-Money Laundering Guidelines and Prevention of Money Laundering (PML) Act. III publishes no chapter-wise weightage; the sections below are how PrepClever's mocks group the chapters, in proportion to their size.
IC-26 Life Insurance Finance
Online (Computer-Based)120 min| Section | Questions | Marks |
|---|---|---|
| Accounting Principles, Life Policy Types and Premium Accounting | 20 | 20 |
| Disbursements, Expenses of Management and Investments | 20 | 20 |
| Final Accounts, Budgeting, Financial Reporting and Accounting Standards | 27 | 27 |
| Financial Analysis and Financial Management in Insurance | 20 | 20 |
| Taxation and Anti-Money Laundering | 13 | 13 |
Key Topics & Syllabus
Accounting Principles, Life Policy Types and Premium Accounting
- check_circleElementary Principles of Accounts
- check_circleLife Assurance Business: Important Types of Life Assurance Policies
- check_circleAccounting Procedures - Premium Accounting
Disbursements, Expenses of Management and Investments
- check_circleAccounting Procedures - Disbursements
- check_circleAccounting Procedure: Expenses of Management
- check_circleInvestments
Final Accounts, Budgeting, Financial Reporting and Accounting Standards
- check_circleFinal Accounts: Revenue Account and Balance Sheet
- check_circleBudget and Budgetary Control
- check_circleInnovative Concepts in Financial Reporting
- check_circleAccounting Standards (Applicable to Life Insurance Companies)
Financial Analysis and Financial Management in Insurance
- check_circleFinancial Analysis
- check_circleManagement Environment in India
- check_circleApplication of Financial Management Concepts in Insurance Industry
Taxation and Anti-Money Laundering
- check_circleTaxation (Current Scenario)
- check_circleAnti-Money Laundering Guidelines and Prevention of Money Laundering (PML) Act
Inside III IC-26 Premium
Full 100-question mocks
Timed papers on the real pattern: 100 MCQs in 2 hours, scored against the 60% pass mark, across all 15 chapters.
Chapter-wise practice
Practice sets for every chapter, so you can work through the syllabus in order and see where you stand on each.
Section-wise sets
Drill the five sections of the paper separately, so the chapters you keep getting wrong get extra repetition.
Explained answers
Every question carries a short explanation of the rule or concept it tests, not just the correct option.
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 III's diplomas are the standard 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.
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-26 in an exam window
III publishes an examination calendar each year. Register for IC-26 within the window and pay the exam fee listed in the current handbook.
Study the IC-26 courseware
Work through the Revised Edition 2023 courseware chapter by chapter, making short notes as you go.
Practise full-length mocks
Take timed 100-question mocks until you score comfortably above 60%.
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.
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-26 the smarter way
Free mock tests, chapter-wise practice questions and a personalized study plan, built around the latest III IC-26 pattern.
Related IRDAI exams
- IC-38IC-38 Insurance Agents Certification
- IRDAI POSPIRDAI Point of Sales Person
- III IC-01 Principles of InsuranceIII IC-01 Principles of Insurance (Licentiate)
- III IC-11 Practice of General InsuranceIII IC-11 Practice of General Insurance (Licentiate)
- III IC-22 Life Insurance UnderwritingIII IC-22 Life Insurance Underwriting (Associateship)
III IC-26 guides
- SyllabusThe IC-26 Life Insurance Finance syllabus from III's Revised Edition 2023: all 15 chapters, from premium accounting and investments to tax and AML.
- Exam PatternThe III IC-26 exam pattern: one online MCQ paper of 2 hours, 60% to pass, 75% for distinction, no negative marking, and the wrong-question rules.
- Eligibility & RegistrationWho can sit III's IC-26: you must pass the Licentiate before enrolling for Associateship compulsories. How to register, enrol and book your exam slot.
- Fees & ValidityIII IC-26 fees from 1 April 2026: ₹900 per attempt for a 30-credit paper, the ₹1,100 one-time Associateship fee, the ₹800 official book, and credit validity.
- Exam DatesIII's 2026 schedule for IC-26: the four sessions, enrolment windows, slot-booking dates, exam weekends and result dates, with the December session's deadlines.
- Study MaterialThe official IC-26 study course from III: the 2023 edition at ₹800 in English and ₹650 in Hindi, the eBook and audiobook, and what else to read.
- PreparationA realistic IC-26 study plan: how to tackle accounting basics, premium and claims accounting, final accounts, ratios, tax and AML, and the traps that cost marks.
- Previous Year PapersIII does not publish IC-26 past papers or answer keys. What it does publish, why recalled questions mislead, and how to practise instead.
- IC-26 vs IC-46IC-26 Life Insurance Finance or IC-46 General Insurance Accounts: both are 30-credit Associateship compulsories. What each covers, costs and suits.
- Formula SheetThe 10 formulas IC-26 questions use most: accounting equation, ratios, solvency, expense ratio, budget variance and NPV. With a worked example.
- Premium AccountingHow life insurers account for premium: first-year, renewal and single premium, when premium is recognised, linked business, reinsurance ceded and premium deposits.
- Claims AccountingHow life insurers account for death claims, maturities, surrenders, annuities and reinsurance recoveries, linked and non-linked: the IC-26 disbursements chapter.
- Expenses of ManagementIRDAI's 2024 expenses of management and commission rules for insurers: what counts as EoM, the board policies insurers need, and what IC-26 tests.
- InvestmentsHow IRDAI regulates where life insurers invest policyholders' money: approved investments, fund types, exposure norms and valuation, for IC-26.
- Final AccountsHow a life insurer's final accounts are laid out under IRDAI's formats: the revenue account (policyholders), profit and loss (shareholders) and balance sheet.
- Budgetary ControlBudgets and budgetary control as IC-26 teaches them: master, fixed and flexible budgets, variance analysis, and how insurers use budgets to control costs.
- Accounting StandardsInd AS 117 (IFRS 17) explained: how it differs from Ind AS 104, when it applies to Indian insurers (1 April 2026), and the AS rules IC-26 tests.
- Financial RatiosThe ratios IC-26 uses to read an insurer's accounts: liquidity, solvency, expense, persistency and return ratios, with what each one tells you.
- TaxationHow life insurance is taxed in India: Section 10(10D) tax-free payouts, 194DA TDS at 2% on the income part, 80C premium rules, insurer tax, and the 2025 Act numbers.
- AML for InsurersAnti-money laundering for insurers: the PML Act, IRDAI's AML/CFT guidelines, KYC, the principal officer, record keeping and reports to FIU-IND.
- Par vs Non-ParPar vs non-par life insurance: who carries the risk, why margins differ, and how insurers keep the two apart in the accounts, from separate revenue accounts to bonus rules.
- Solvency RatioWhat a life insurer's solvency ratio means: ASM divided by RSM, the 1.5 minimum, where insurers disclose it, how analysts read it and what it misses.
- Embedded ValueWhat embedded value measures, its parts (free surplus, required capital, VIF), appraisal value, TEV vs EEV vs MCEV vs Indian EV, and the analysis of movement, for IC-26.
- Principles of AccountsThe accounting basics IC-26 starts with: accounting concepts, the accounting equation, single vs double entry, the golden rules of debit and credit, and the trial balance.
- ULIP AccountingHow life insurers account for ULIPs: unit fund vs non-unit fund, NAV-based unit reserves, fund charges, the ULIP discontinued policy fund and linked fund valuation.
- Valuation and SurplusHow the appointed actuary values a life insurer's liabilities, how the valuation surplus arises, and how it is split between policyholders' bonus, FFA and shareholders.
- Reinsurance AccountingHow reinsurance shows in a life insurer's accounts: premium ceded and accepted, claim recoveries, profit commission, the liability adjustment and Balance Sheet items.
- FDI in InsuranceFDI limit in India's insurance sector: 26% in 2000, 49% in 2015, 74% in 2021, and 100% under the Sabka Bima Sabki Raksha Act 2025, in force 5 February 2026.
- Risk-Based CapitalRisk-based capital (Ind-RBC) for Indian insurers: how it differs from the 150% solvency margin rule, IRDAI's QIS 1 and QIS 2, and why it is not in force yet.
- Penetration & DensityInsurance penetration in India was 3.7% and density USD 97 in 2024-25 (IRDAI). Life and non-life figures, world comparison, and how both are calculated.
- VNB MarginWhat value of new business (VNB) and VNB margin mean for a life insurer, how APE is worked out, and a worked example on LIC's FY2025-26 figures.
- Persistency RatioThe persistency ratio of a life insurer: IRDAI's 13th, 25th, 37th, 49th and 61st month measures, premium vs number of policies basis, and LIC's figures.
- Expense RatioHow a life insurer's expense ratio is worked out: IRDAI's expenses of management and commission ratios, the rating-agency versions, and a worked example.
- GST on PremiumGST on life insurance premium is nil from 22 September 2025: individual term, endowment and ULIP policies are exempt under Notification 16/2025. Group cover is not.
- Section 80CCCSection 80CCC explained: the deduction for an LIC or insurer pension plan, the ₹1.5 lakh limit shared with 80C, the new regime rule, tax on pension, and the 2025 Act.
- Reversionary BonusWhat a reversionary bonus is in life insurance: simple vs compound, vested bonus, interim and terminal bonus, how bonuses are declared, and what paid-up does to them.
- Survival BenefitWhat a survival benefit is, which plans pay it, how it affects the death, surrender and paid-up values, and when the insurer books it. With LIC's money back example.
- Unclaimed AmountsIRDAI's rules on unclaimed amounts of policyholders: the 12-month definition, the segregated fund, accounts disclosure, transfer to the Senior Citizens' Welfare Fund after 10 years.
- Lapse & RevivalWhat lapse, paid-up and revival mean under IRDAI's 2024 rules, and how insurers account for lapsed and revived policies: premium, reserves and the discontinued fund.
- Linked vs Non-LinkedLinked and non-linked life insurance compared: IRDAI's par, non-par and ULIP categories, and how each is accounted for in separate revenue accounts, reserves and investments.
- Group Term InsuranceGroup term life insurance explained: the master policy, IRDAI's group product and profit-sharing rules, and how insurers reserve for one-year renewable group term.
- Journal EntriesJournal entries in a life insurer's books: premium due, outstanding and in advance, reinsurance, commission, claims paid and year-end reserves, with the rule for each.
- LIC Annual ReportHow to read LIC's annual report and balance sheet for FY 2025-26: premium, benefits, policy liabilities, solvency, embedded value, and what each line means.
- Suspicious Transaction ReportWhat a suspicious transaction report is, the 7-working-day deadline to FIU-IND, life insurance red flags, who files it, and the no-tipping-off rule.
- Agent CommissionIRDAI's current commission rules for agents and intermediaries: no product-wise caps, a Board policy within EoM limits, the old 2016 rates, and the accounting.
- Immediate vs Deferred AnnuityImmediate vs deferred annuity explained: when income starts, IRDAI's annuity options and vesting rules, and how insurers account for annuity business.
III IC-26 FAQ
What is III IC-26 Life Insurance Finance?
IC-26 Life Insurance Finance is a paper of the Insurance Institute of India's Associateship diploma. Its syllabus covers Accounting Principles, Life Policy Types and Premium Accounting, Disbursements, Expenses of Management and Investments, Final Accounts, Budgeting, Financial Reporting and Accounting Standards, Financial Analysis and Financial Management in Insurance and Taxation and Anti-Money Laundering.
What is the IC-26 exam pattern?
An online, objective multiple-choice paper of 2 hours, marked out of 100 (100 questions). III's handbook asks you to attempt every question; if a question is found to be wrong it is removed and marks are pro-rated on the rest.
What are the passing marks for IC-26?
60% and above, which is III's pass mark for every MCQ paper. 75% and above is awarded a distinction. The handbook does not mention negative marking.
Is there negative marking in IC-26?
III's Examination Handbook does not mention negative marking for its professional exams, and III asks for all questions to be attempted, so answer every question.
How many questions does IC-26 have?
The paper is marked out of 100, and it is widely reported as 100 multiple-choice questions in 2 hours. III's handbook does not print a question count for professional papers.
What is the IC-26 syllabus?
The syllabus (Revised Edition 2023) runs to 15 chapters, which PrepClever groups into five sections: Accounting Principles, Life Policy Types and Premium Accounting (Elementary Principles of Accounts, Life Assurance Business: Important Types of Life Assurance Policies and Accounting Procedures - Premium Accounting); Disbursements, Expenses of Management and Investments (Accounting Procedures - Disbursements, Accounting Procedure: Expenses of Management and Investments); Final Accounts, Budgeting, Financial Reporting and Accounting Standards (Final Accounts: Revenue Account and Balance Sheet, Budget and Budgetary Control, Innovative Concepts in Financial Reporting and Accounting Standards (Applicable to Life Insurance Companies)); Financial Analysis and Financial Management in Insurance (Financial Analysis, Management Environment in India and Application of Financial Management Concepts in Insurance Industry); Taxation and Anti-Money Laundering (Taxation (Current Scenario) and Anti-Money Laundering Guidelines and Prevention of Money Laundering (PML) Act). III says the syllabus is indicative, not exhaustive.
How are the questions split across chapters?
III does not publish a chapter-wise weightage. Our mocks spread the 100 questions across the chapters in proportion to their size, grouped into five sections, so no chapter is over- or under-practised.
What is free on PrepClever?
Mock Test 1, the full 100-question paper, plus one practice test across every section and the whole Accounting Principles, Life Policy Types and Premium Accounting chapter, all without paying. The other mocks, practice tests and chapters are premium.
How is IC-26 different from IC-38?
IC-38 is the agent licensing exam (50 questions, 35% to pass) you sit before you can sell insurance. IC-26 is a paper of the Insurance Institute of India's Associateship diploma, pitched at people building a career in insurance, and it needs 60% to pass.
Ready to crack III IC-26?
Get unlimited mock tests and full explanations, or start with free practice questions today - no payment needed either way.