What is the PCEIA general exam?
The Pre-Contract Examination for Insurance Agents (PCEIA) is the entry exam set by the Asian Institute of Insurance (Aii) for new insurance agents in Malaysia. General insurance agents usually sit the AB route: Part A covers basic insurance principles and Part B covers general insurance such as motor, fire and personal accident. After passing, you register with PIAM before you can sell.
The exam format
| Route | AB (Basic + General): 100 questions, 50 + 50, 2 hours, RM 100 |
|---|---|
| General only (BO) | 50 questions, 1½ hours, RM 95 |
| Pass mark | 50% |
| Languages | English, Bahasa Malaysia and Mandarin |
| Delivery | Virtual Computer-Based Exam (VCBE); permit and results through Aii's iLMS |
| Entry | SPM/MCE with 5 passes including Bahasa Malaysia, or equivalent |
| Exemptions | No longer recognised from 8 August 2024 |
What the exam covers
- Risk and insurance principles: perils and hazards, insurable risks, risk management, reinsurance
- Insurance contract principles: indemnity, subrogation, contribution, proximate cause, average, Schedule 9 disclosure
- Regulatory framework: the FSA, BNM, PIAM registration, motor tariff liberalisation, the Motor Insurers' Bureau
- Ethics and consumer protection: Schedule 7 prohibited conduct, FTFC outcomes, the Financial Markets Ombudsman Service
- Motor insurance: compulsory third-party cover under sections 90 to 97 of the Road Transport Act 1987, policy types, NCD, betterment, knock-for-knock
- Fire and property: basic fire, houseowner and householder cover, average, consequential loss
- Personal accident and medical: capital sum scales, weekly benefits, deductibles and co-insurance
- Liability, marine and miscellaneous: public, product and professional liability, cargo clauses, fidelity, money
- Claims and policy wording: endorsements, cover notes, claims conditions and police reports
Free official resources, and what we add
Aii does not publish a free question bank; the exam fee includes an e-learning module and e-book. PIAM publishes free consumer guides on motor insurance, NCD, betterment and claims, and the Road Transport Act and FSA are free to read. Our questions are written from these sources and every explanation names the section, paragraph or guide it comes from.
How to prepare
- Read the Aii e-book once to see the whole syllabus.
- Learn Part IV of the Road Transport Act 1987: what third-party cover must and need not include, and when insurers must satisfy judgments.
- Memorise the PIAM NCD scale (25%, 30%, 38.33%, 45%, 55%) and betterment scale (15% at 5 years up to 40% at 10 years and above).
- Practise the calculations: average, contribution, NCD, excess, betterment and short-period refunds.
- Sit a full timed mock of 100 questions in 2 hours, then revisit your weakest topics.
Practice questions with answers
Tap a question to see the correct answer and explanation.
Poor housekeeping in a factory, with oily rags left near machinery, is an example of a:
- Moral hazard
- Fundamental risk
- Physical hazard
- Speculative risk
Answer: C, Physical hazard. A physical hazard is a tangible condition that increases the chance or severity of loss, such as oily rags near heat. Moral hazard relates to dishonesty or the attitude of the insured. Source: Aii PCEIA syllabus, concepts of risk.
An insurer pays a car owner for damage caused by a negligent driver. The insurer then sues the negligent driver to recover the amount. Which principle allows this?
- Contribution
- Proximate cause
- Utmost good faith
- Subrogation
Answer: D, Subrogation. Subrogation gives the insurer, once it has paid, the insured's rights against a third party responsible for the loss. It stops the insured being paid twice for the same loss. Source: Aii PCEIA syllabus, corollaries of indemnity.
After passing the PCEIA, with which body must a general insurance agent register before transacting business?
- LIAM
- FIMM
- PIAM
- The Securities Commission
Answer: C, PIAM. The Aii PCEIA page states that after passing, candidates must register with PIAM (general insurance) or LIAM (life insurance) before transacting insurance business. Source: Aii, PCEIA programme page.