Life Insurance: Accounts and Financial Management
Insurance Institute of India: Associate Examination
Compulsory for the Life stream Associate. Covers life insurance accounting: premium and expense accounting, investments, final accounts, financial analysis, budgeting, taxation, and AML.
Instant access · Secure payment by Razorpay
Refund within 3 days of purchase, only if you have answered fewer than 20 questions. Otherwise, purchases are not refundable. Refund policy
IC-26 exam at a glance
| Level | Associateship, compulsory for life candidates |
|---|---|
| Credit points | 30 |
| Exam | 2 hours, online, multiple choice |
| Pass mark | 60% (75% for distinction) |
400 practice + 220 Enhanced Practice
Across 15 chapters, every question reviewed and exam-aligned.
Tap a chapter to see what it covers.
1Elementary Principles of Accounts26 + 20 Enhanced questions26 + 20 Enhanced
Accounting basics: double entry bookkeeping, journals, ledgers, trial balance, depreciation, bank reconciliation and final accounts.
2Life Assurance Business: Important Types of Life Assurance Policies27 + 20 Enhanced questions27 + 20 Enhanced
Life insurance business: history in India, regulators, investment and audit rules, policy concepts and plan types.
3Accounting Procedure: Premium Accounting26 + 15 Enhanced questions26 + 15 Enhanced
Premium accounting: how life insurers record premiums, books used for reconciliation and posting, and ULIP premiums.
4Accounting Procedure: Disbursements26 + 15 Enhanced questions26 + 15 Enhanced
Disbursement accounting: policy loans and claim payments for traditional, unit linked insurance, health and pension plans.
5Accounting Procedure: Expenses of Management26 + 10 Enhanced questions26 + 10 Enhanced
Expenses of management: accounting for agent commission and other management expenses of a life insurer.
6Investments26 + 12 Enhanced questions26 + 12 Enhanced
Investments: IRDAI investment rules for life insurers, asset classification, non-performing assets, provisioning and income recognition.
7Final Accounts: Revenue Account and Balance Sheet27 + 20 Enhanced questions27 + 20 Enhanced
Final accounts: life insurer revenue account and balance sheet under IRDAI Schedule A, with disclosures.
8Budget and Budgetary Control27 + 12 Enhanced questions27 + 12 Enhanced
Budgeting: what a budget is, budget types, budgeting in insurers, performance budgets and performance review ratios.
9Innovative Concepts in Financial Reporting27 + 12 Enhanced questions27 + 12 Enhanced
Innovative financial reporting: value added statements, their uses and limits, and human resource accounting models.
10Accounting Standards Applicable to Life Assurance Companies27 + 20 Enhanced questions27 + 20 Enhanced
Accounting standards for life insurers: why they exist, cash flow statements, asset revaluation and Ind AS.
11Financial Analysis27 + 15 Enhanced questions27 + 15 Enhanced
Financial analysis: analysis tools, ratios for life insurers, and funds flow and cash flow statements.
12Management Environment in India27 + 12 Enhanced questions27 + 12 Enhanced
Management environment in India: insurance and finance sector liberalisation, and the Indian financial system.
13Application of Financial Management Concepts in Insurance Industry27 + 10 Enhanced questions27 + 10 Enhanced
Financial management in insurance: applying finance concepts to insurers, investments, asset liability management and solvency.
14Taxation (Current Scenario)27 + 15 Enhanced questions27 + 15 Enhanced
Taxation: canons of tax, income tax on life insurers and salaries, TDS, advance tax and GST.
15Anti-Money Laundering Guidelines and Prevention of Money Laundering Act27 + 12 Enhanced questions27 + 12 Enhanced
Anti-money laundering: meaning of money laundering, PMLA, KYC norms, customer identification and reporting to FIU-India.
Draws from all 400 questions across every chapter, so no two attempts are the same.
The Advanced Mock Test draws from 220 Enhanced Practice questions.
IC-26: frequently asked questions
What does IC-26 cover?
IC-26 covers life insurance finance and accounting: bookkeeping basics, premium, claim and expense accounting, investments, final accounts, accounting standards, financial analysis, budgeting, taxation and anti-money laundering rules.
Is IC-26 compulsory?
Yes, for life candidates. IC-26 is a compulsory Associateship paper worth 30 credit points. Non-life candidates take IC-46 instead.
What is the pass mark for IC-26?
60%. A score of 75% or more is a pass with distinction.
How long is the IC-26 exam?
2 hours. It is an online exam with multiple choice questions.
When will I know my result?
You see your score right after the online exam. The formal result usually follows within about a month.
Related papers
Exam-preparation material only. InsuranceGurukul does not sell insurance or financial products.