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The AB route combines 50 basic insurance and 50 general insurance questions in two hours, with a 50% pass mark. Confirm current booking arrangements with Aii. Principal appointment and PIAM registration are also required.
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One complete free lesson for Pre-Contract Examination for Insurance Agents: Basic and General Insurance (AB). No account or payment needed.
Work from permitted use to eligible repair costs, excess and payment limit in a stipulated motor claim, avoiding the comprehensive-cover trap.
Aiman's car suffers collision damage and the repair estimate is twelve thousand six hundred ringgit. He says comprehensive cover should pay the entire bill. The assessor identifies six hundred ringgit of unrelated wear and tear. For this original PCEIA general case, assume the collision is covered, the wear item is excluded, the applicable excess is one thousand ringgit and the payment limit is thirty thousand. What is payable? Establish those assumptions before reaching for a calculator.
There is an earlier question: Aiman recently started paid deliveries. A policy describing private use should not simply be assumed to include that activity. Check the proposal, schedule and any approved endorsement, and refer unclear facts to the insurer. For the calculation that follows, expressly assume the insurer had accepted the delivery use before the accident and all relevant driver conditions were satisfied. Without establishing coverage, subtracting an excess would create a precise answer to an unresolved problem.
Remove the excluded wear item from the estimate. Twelve thousand six hundred minus six hundred leaves twelve thousand ringgit of eligible collision repair cost. Apply the stipulated one thousand excess next, leaving eleven thousand. The thirty thousand limit does not reduce this amount further. On these assumptions, the insurer pays eleven thousand ringgit and Aiman bears sixteen hundred: six hundred excluded wear plus one thousand excess. His share is not just the excess printed on the schedule.
Comprehensive is a description of scope, not a promise that every expense will be paid. Own damage, third-party liabilities, exclusions and extensions still have distinct roles. Routine servicing is not made into accidental damage by appearing on a repair invoice. Equally, do not conclude that a delivery activity automatically defeats every possible claim without examining the actual terms and facts. The disciplined answer identifies the coverage question and states the assumptions supporting the calculation.
Now increase only the stipulated excess to two thousand ringgit. Leave the accepted use, excluded wear item and limit unchanged. What does the insurer pay? Eligible collision repairs remain twelve thousand, so payment becomes ten thousand ringgit. Aiman bears two thousand six hundred in total, consisting of the excluded six hundred and the two thousand excess. The eligible loss has not changed; the allocation between insurer and customer has. Do not deduct the wear item twice.
Follow four steps: confirm the event and use fall within cover, identify eligible costs, apply the stated customer share, and test the relevant limit in the required order. Preserve evidence and follow reporting and repair procedures rather than promising settlement personally. This sequence applies general-insurance concepts to a concrete motor problem while supporting fair explanations. When a question changes one fact, identify whether it changes coverage, loss amount, cost sharing or the limit before recalculating.
Aligned to the Official programme syllabus. Independent teaching with original examples; this focused lesson does not cover the entire syllabus.
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Exam Syllabus
Insurable risks | Indemnity | Subrogation | Contribution
Disclosure and policy wording | Proximate cause | Claims evidence | Excesses and limits
Rebuilding values | Average clauses | Named perils | Business interruption
Third-party liabilities | Own damage | Exclusions | Vehicle use
Cargo cover | Insurable transit interests | Public liability | Professional indemnity
Personal accident benefits | Medical reimbursement | Agency duties | Customer complaints
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Pre-Contract Examination for Insurance Agents: Basic and General Insurance (AB) · 90 Days · RM 4.43/day
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PCEIA AB combines basic insurance and general insurance. It is distinct from the AC life route.
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