Malaysia PCIL exam guide

Who must sit · the three parts · remote proctoring · languages · after you pass

1. Who must sit

The Pre-Contract Examination for Insurance Agents (PCIL) is the entry examination for anyone who wants to act as a life insurance agent in Malaysia. The paper combines the life insurance syllabus with the investment-linked syllabus, so one pass covers agents who will sell both ordinary life and investment-linked policies. Since 8 August 2024 all exemptions have been removed — every new life agent sits the examination, whatever their prior qualification.

2. Registering for the examination

The examination is set by the Asian Institute of Insurance (Aii) and delivered by remote proctoring — you sit it online under supervision rather than at a test centre. The fee is RM160. When you register you choose the language of the paper: English, Bahasa Malaysia or Chinese. Fees, dates and identity requirements are set by Aii and can change; check the current details on the Aii website before booking.

3. How the paper works

One paper of 100 multiple-choice questions in 2 hours:

• Part A — Fundamentals of Insurance: 40 questions.
• Part C — Life Insurance: 30 questions.
• Part D — Investment-Linked: 30 questions.

The pass mark is 50% of the paper as a whole. In 2024, 19,451 candidates sat and 11,937 passed — a pass rate of 61%, which means roughly two in five candidates did not pass at that attempt.

4. What each part tests

Part A — Fundamentals of Insurance (A1 – A6)

Perspectives on insurance and risk management, including takaful; the fundamental principles of insurance; legislation and consumer protection under the Financial Services Act 2013; the insurance contract; the law of agency; and medical and health insurance and takaful products under the Bank Negara Malaysia policy document on medical and health insurance/takaful business.

Part C — Life Insurance (C1 – C6)

Legal provisions relating to life insurance policies under the Financial Services Act 2013; life insurance products; premium rating; underwriting and policy documents; claims; and the LIAM Code of Practice for life insurance agents.

Part D — Investment-Linked (D1 – D9)

An introduction to investment-linked insurance; the mechanics and features of regular and single premium investment-linked policies; disclosure requirements; considerations for purchasing an investment-linked policy; investment considerations; the types of investment vehicles in investment-linked funds and their risks; common types of funds, their risks and fund management; and the Bank Negara Malaysia policy document on investment-linked business (2023).

5. Choosing a language

The examination is offered in English, Bahasa Malaysia and Chinese. Terminology differs between the three — the Chinese version uses the terms found in Malaysian industry publications — so it pays to prepare in the language you will sit in. The app carries every question, option and explanation in all three, and you can switch at any time.

6. After you pass

• Appointment. Your appointment as an agent proceeds through the life insurer you will represent, under the rules set by Bank Negara Malaysia and the Life Insurance Association of Malaysia (LIAM).
• Conduct. Once appointed you are bound by the LIAM Code of Practice and the conduct requirements of the Financial Services Act 2013 — the same material tested in Parts A and C.
• Further qualifications. Other product lines and advisory roles carry their own examinations; confirm the current requirements with Aii and your insurer.

7. Costs

• Examination fee: RM160
• Registration and appointment: through your insurer, under Bank Negara Malaysia and LIAM rules

Fees and schedules are subject to announcements from the Asian Institute of Insurance.