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2026 Statistics

Key Facts: III IC-14 Exam

20 credit points

IC-14 subject credit value on III Licentiate pathway

III Examination Handbook — List of Subjects/Papers

2 hours

Online MCQ examination duration

III Examination Handbook

60%

Minimum pass mark for online MCQ professional papers

III Examination Handbook

75%+

Distinction threshold in a subject

III Examination Handbook

₹600

India paper enrollment fee for 20-credit subjects from 1 April 2026 (+ taxes)

III Examination Handbook Table of Fees (effective 1.4.2026)

₹800

One-time fresh candidate registration (includes Associated Institute life membership)

III Examination Handbook Table of Fees (effective 1.4.2026)

10 chapters

Official IC-14 Revised Edition 2018 study-course chapter count

III Professional Examination Syllabus contents (updated 7.7.2025)

5 years

Validity of credit points from the date of passing a subject

III Examination Handbook

III IC-14 (2026): online MCQ Licentiate compulsory paper, 20 credit points, 2 hours, pass at 60% (Distinction 75%+). India paper enrollment ₹600 + taxes; fresh registration ₹800 (fees from 1 April 2026). Free bank: 100 practice MCQs mapped to the official 2018 ten-chapter outline.

Sample III IC-14 Practice Questions

Try these sample questions to test your III IC-14 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which legislation is widely regarded as the first comprehensive statute to regulate insurance business in India?

A.The Indian Life Assurance Companies Act, 1912 alone (life-only precursor)

B.The Insurance Act, 1938

C.The IRDAI Act, 1999

D.The Consumer Protection Act, 2019

Explanation: The Insurance Act, 1938 consolidated and expanded earlier piecemeal rules into a broad framework governing insurers, intermediaries, and policy contracts in India. Earlier Acts such as 1912 were narrower in scope.

2Life insurance business in India was nationalised in 1956 through:

A.The General Insurance Business (Nationalisation) Act, 1972

B.The IRDA Act, 1999

C.The Marine Insurance Act, 1963

D.The Life Insurance Corporation Act, 1956

Explanation: Parliament nationalised life insurance in 1956 and created the Life Insurance Corporation of India (LIC) under the Life Insurance Corporation Act, 1956. General insurance nationalisation followed later in 1972.

3General insurance business in India was nationalised in 1972, leading to the formation of:

A.Only the Life Insurance Corporation

B.IRDAI as the sole insurer

C.The General Insurance Corporation of India and four subsidiary companies

D.State-level insurance monopolies with no central corporation

Explanation: The General Insurance Business (Nationalisation) Act, 1972 nationalised Indian general insurers and established GIC along with subsidiary companies that later became independent insurers after reforms.

4The Insurance Regulatory and Development Authority Act, 1999 primarily aimed to:

A.Establish a statutory regulator and enable private participation in insurance

B.Re-nationalise all private insurers

C.Abolish the Insurance Act, 1938 entirely

D.Merge life and general insurance into one public sector company

Explanation: The IRDA Act, 1999 created IRDA (now IRDAI) as the insurance regulator and paved the way for re-opening the Indian insurance market to private and foreign investment subject to rules.

5Under the Insurance Act, 1938 framework taught at Licentiate level, 'insurance business' regulation covers:

A.Only marine cargo policies

B.Life, general, and health insurance operations subject to the Act and IRDAI rules

C.Only government employee pension schemes with no private insurers

D.Only reinsurance treaties written outside India

Explanation: The 1938 Act is the parent statute for insurance operations in India, supplemented by IRDAI regulations. Licentiate study focuses on how it structures insurer duties, contracts, and supervisory powers.

6Which milestone best describes the Indian insurance market before the IRDA Act, 1999?

A.A fully open market with unlimited foreign insurers

B.No insurance regulation of any kind

C.Only cooperative societies with no statutory supervision

D.A largely state-owned market with LIC dominating life and GIC group dominating general insurance

Explanation: From 1956/1972 nationalisation until liberalisation, life insurance was dominated by LIC and general insurance by the public-sector GIC structure. Private insurers re-entered after 1999 reforms.

7The Indian Insurance Companies Act, 1928 is historically significant because it:

A.It created IRDAI as the statutory regulator

B.It nationalised all general insurance companies

C.It introduced compulsory motor third-party insurance nationwide

D.It required insurers to furnish statistical and regulatory information to government

Explanation: The 1928 Act enabled government collection of data on Indian and foreign insurers operating in India — an early step toward systematic supervision before the comprehensive 1938 Act.

8After insurance sector reforms, private life insurers in India must operate:

A.Without any registration because competition is free

B.Only as branches of foreign governments

C.As companies registered with IRDAI and compliant with the Insurance Act, 1938 and applicable regulations

D.Solely through cooperative societies exempt from all law

Explanation: Post-1999, private insurers enter only through IRDAI registration/licensing under the Insurance Act and IRDAI regulations governing capital, conduct, and solvency.

9Which sequence correctly orders major Indian insurance legislative milestones taught in IC-14?

A.IRDA Act 1999 → Insurance Act 1938 → Life nationalisation 1956

B.General nationalisation 1972 → Insurance Act 1938 → IRDA Act 1999

C.Insurance Act 1938 → Life nationalisation 1956 → General nationalisation 1972 → IRDA Act 1999

D.Life nationalisation 1956 → IRDA Act 1999 → Insurance Act 1938

Explanation: IC-14 traces development from the foundational 1938 Act through nationalisation eras to the 1999 regulatory reforms that reopened private participation.

10The Insurance Act, 1938 empowers the regulator (IRDAI) to issue rules on matters such as:

A.Only the design standards for policy jacket artwork

B.Aircraft manufacturing and aviation safety certification standards

C.Insurer licensing, policyholder protection, investments, and intermediary conduct

D.Criminal sentencing guidelines for all civil commercial disputes

Explanation: IRDAI's rule-making spans licensing, financial soundness, policyholder protection, investments, and market conduct — all rooted in statutory authority under the Insurance Act as amended.

About the III IC-14 Exam

IC-14 Regulations of Insurance Business is the compulsory Licentiate paper on Indian insurance law and IRDAI regulation. The Revised Edition 2018 syllabus covers development of insurance legislation and the Insurance Act 1938; IRDAI functions and insurance councils; licensing; conduct of business; policyholders' rights of assignment, nomination and transfer; protection of policyholders' interest; dispute resolution; solvency margin and investments; and international trends in insurance regulation.

Assessment

Compulsory Licentiate subject (Subject Code 14) worth 20 credit points. Online MCQ examination administered by the Insurance Institute of India. Common to both life (with IC-01 + IC-02) and general (with IC-01 + IC-11) Licentiate pathways. Sessions typically run multiple times per year.

Time Limit

2 hours

Passing Score

60% and above (Distinction at 75% or more in the subject)

Exam Fee

₹600 paper enrollment (20 credit points) for India/neighbouring listed countries + applicable taxes; ₹800 one-time registration for fresh candidates. Overseas 20-credit enrollment ₹3,000. Fees effective 1 April 2026 — confirm on III portal. (Insurance Institute of India (III))

III IC-14 Exam Content Outline

10 questions

Development of Insurance Legislation & Insurance Act 1938

Legislative milestones from the 1938 Act through nationalisation and the IRDA Act 1999 liberalisation.

10 questions

IRDAI Functions and Insurance Councils

Regulator mandate, industry councils, supervision, and enforcement.

10 questions

IRDAI and its Licensing Functions

Insurer registration and intermediary licensing including agents, brokers, corporate agents, and surveyors.

10 questions

Regulations on Conduct of Business — I

Disclosure, proposals, material facts, policy delivery, needs analysis, and free-look.

10 questions

Regulations on Conduct of Business — II

Advertising, mis-selling, portability, renewals, distance marketing, and records.

10 questions

Policyholders' Rights — Assignment, Nomination & Transfer

Nomination changes, absolute/conditional assignment, and claim payment priorities.

10 questions

Protection of Policyholders' Interest

Grievance machinery, Citizens' Charter, claim service standards, and fair terms.

10 questions

Dispute Resolution Mechanism

Insurance Ombudsman, consumer forums, MACT, and arbitration routes.

10 questions

Financial Regulatory Aspects — Solvency Margin & Investments

Solvency, admissible assets, investment limits, and supervisory intervention.

10 questions

International Trends in Insurance Regulation

Solvency II, IAIS, RBC, microinsurance, climate risk, and InsurTech supervision.

How to Pass the III IC-14 Exam

What You Need to Know

Passing score: 60% and above (Distinction at 75% or more in the subject)
Assessment: Compulsory Licentiate subject (Subject Code 14) worth 20 credit points. Online MCQ examination administered by the Insurance Institute of India. Common to both life (with IC-01 + IC-02) and general (with IC-01 + IC-11) Licentiate pathways. Sessions typically run multiple times per year.
Time limit: 2 hours
Exam fee: ₹600 paper enrollment (20 credit points) for India/neighbouring listed countries + applicable taxes; ₹800 one-time registration for fresh candidates. Overseas 20-credit enrollment ₹3,000. Fees effective 1 April 2026 — confirm on III portal.

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-14 Study Tips from Top Performers

1Build a timeline chart: Insurance Act 1938 → life nationalisation 1956 → general nationalisation 1972 → IRDA Act 1999 — exam items often test sequence and purpose.

2Separate IRDAI statutory powers from Life/General Insurance Council industry roles; know which body licenses agents vs which resolves retail disputes.

3For conduct-of-business, link point-of-sale disclosure, free-look, and grievance escalation as one customer-protection chain.

4Practice nomination vs absolute vs conditional assignment scenarios — IC-14 frequently tests who receives claim proceeds.

5Know when to route complaints to insurer grievance cell, IRDAI cell, Insurance Ombudsman, Consumer Commission, or MACT for motor injury.

6Sit timed 100-question mocks in 2 hours to match III online pacing (~1.2 minutes per question).

Frequently Asked Questions

What is III IC-14 Regulations of Insurance Business?

IC-14 is the compulsory Licentiate paper of the Insurance Institute of India covering Indian insurance legislation, IRDAI regulation, policyholder protection, and dispute resolution. It is common to both life and general Licentiate pathways and carries 20 credit points.

What is the IC-14 exam format and duration?

Per the III Examination Handbook, professional papers such as IC-14 are conducted online in MCQ format with a 2-hour duration. Candidate resources commonly describe a 100-question / 100-mark paper; confirm the live paper details when you book your slot.

What is the passing score for IC-14?

Passing marks for online MCQ professional papers are 60% and above. Scoring 75% or more in a subject is treated as Distinction for that subject.

How much does IC-14 cost in 2026?

From 1 April 2026, III's Table of Fees lists ₹600 paper enrollment for a 20-credit-point subject in India (plus applicable taxes) and ₹800 one-time registration for fresh candidates (inclusive of Associated Institute life membership). Overseas enrollment for 20 credit points is listed at ₹3,000. Always confirm current fees on the III portal.

What syllabus should I study for IC-14?

Use the official IC-14 Regulations of Insurance Business Revised Edition 2018 study course. Ten chapters cover insurance legislation and the Insurance Act 1938; IRDAI and councils; licensing; conduct of business (two parts); assignment/nomination/transfer; policyholder protection; dispute resolution; solvency and investments; and international regulatory trends.

Are these official III exam questions?

No. These are original OpenExamPrep practice questions aligned to the published IC-14 chapter outline. III does not release its live proprietary question bank.