100+ Free AAii 306 Motor Insurance Practice Questions

Pass your AAii Level 1 - Motor Insurance (306), Malaysia exam on the first try — instant access, no signup required.

✓ No registration✓ No credit card✓ No hidden fees✓ Start practicing immediately

100+ Questions

100% Free

Loading practice questions...

2026 Statistics

Key Facts: AAii 306 Motor Insurance Exam

50 MCQs

Official final examination length for AAii Level 1 electives including 306

AAii brochure / Aii assessment structure

90 minutes

Time allowed for the elective final MCQ paper

AAii brochure

70%

Combined coursework and final examination pass mark

AAii brochure

60% / 40%

Coursework versus final exam weighting for Level 1 electives

AAii brochure

RM700 / RM1,800

Approximate self-study versus class-based Level 1 subject fees (2026 PQ brochure)

Aii AAii PQ brochure (March 2026)

AAii Level 1 Motor Insurance (306) is a Malaysian professional elective from the Asian Institute of Insurance. The final exam is 50 MCQs in 90 minutes (40% of the grade), with coursework at 60%, and a 70% combined pass mark. Subject fees are about RM700 self-study or RM1,800 class-based per subject. This free bank expands motor product, underwriting, and claims topics to 100 practice questions.

Sample AAii 306 Motor Insurance Practice Questions

Try these sample questions to test your AAii 306 Motor Insurance exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the Road Transport Act 1987, what minimum motor insurance must be in force before a vehicle is used on a public road in Malaysia?

A.Compulsory third-party insurance covering death or bodily injury to third parties

B.Comprehensive cover for own damage and third-party property

C.Third-party fire and theft cover only

D.Personal accident cover for the driver only

Explanation: The Road Transport Act 1987 requires compulsory third-party insurance covering liability for death or bodily injury caused to third parties. Driving without it is an offence.

2What document must normally be produced on request to prove that compulsory motor insurance is in force?

A.Certificate of insurance

B.Vehicle registration card only

C.Driving licence only

D.Road tax receipt only

Explanation: A certificate of insurance (or cover note where permitted) evidences that the compulsory policy required by the Road Transport Act 1987 is in force.

3Which authority is the primary regulator of the insurance and takaful industry in Malaysia?

A.Bank Negara Malaysia (BNM)

B.Persatuan Insurans Am Malaysia (PIAM)

C.Road Transport Department (JPJ)

D.Motor Insurers' Bureau (MIB)

Explanation: Bank Negara Malaysia supervises and regulates insurers, takaful operators, and related conduct under the financial services framework.

4What is the principal role of PIAM in the Malaysian motor insurance market?

A.Representing general insurers and promoting market practice including motor tariff/NCD frameworks

B.Issuing driving licences

C.Adjudicating all motor accident court cases

D.Setting criminal penalties for traffic offences

Explanation: PIAM is the association of general insurers in Malaysia. It supports industry practice, consumer information, and historically administered motor tariff and NCD arrangements with members.

5The Motor Insurers' Bureau (MIB) in Malaysia is primarily associated with:

A.Arrangements for compensating certain third-party victims where compulsory insurance requirements are not met

B.Collecting NCD data for all vehicles

C.Approving motor repairer panel rates only

D.Issuing PIAM motor policy wordings

Explanation: MIB arrangements address compensation for eligible third-party victims in uninsured or untraced driver situations within the framework agreed among insurers.

6Following motor insurance liberalisation in Malaysia, which cover types were liberalised from July 2017 while third-party cover largely remains tariffed?

A.Comprehensive and third-party fire and theft (TPFT)

B.Act cover only

C.All cover types including third party

D.Motorcycle third party only

Explanation: From July 2017, comprehensive and TPFT premiums were liberalised so insurers could price competitively. Third-party cover remains subject to tariff arrangements.

7Using a motor vehicle on a road without the compulsory insurance required by the Road Transport Act 1987 is:

A.An offence that can attract penalties including fines and possible imprisonment

B.Permitted if road tax is paid

C.Allowed for one day after purchase

D.Only a civil matter between insurers

Explanation: Driving without compulsory third-party insurance is a criminal offence under the RTA framework and may result in fines, imprisonment, and other enforcement action.

8Why is 'cash-before-cover' emphasised in Malaysian motor insurance practice?

A.Because cover normally commences only after premium is received or guaranteed as agreed, reducing uninsured exposure

B.Because insurers must issue policies before receiving any premium under law

C.Because JPJ prohibits cover notes entirely

D.Because NCD cannot be checked until premium is paid

Explanation: Cash-before-cover means effective insurance cover typically starts only when premium is paid or credit terms are properly arranged, protecting insurers and ensuring valid cover for the insured.

9Compulsory insurance under the Road Transport Act 1987 principally covers:

A.Third-party death and bodily injury liability arising from use of the vehicle on a road

B.The insured driver's own vehicle repair costs in every accident

C.Theft of the insured vehicle

D.Windscreen replacement for the policyholder

Explanation: The statutory minimum is third-party death and bodily injury cover. Own damage, theft, and windscreen are voluntary benefits under higher cover types.

10Bank Negara Malaysia's oversight of motor insurance includes:

A.Supervising insurer/takaful operator conduct, financial soundness, and consumer protection frameworks

B.Setting every repairer's labour rate by statute

C.Replacing PIAM as the NCD database operator

D.Issuing certificates of insurance for every policy

Explanation: BNM regulates licensed insurers and takaful operators, including governance, financial requirements, and fair treatment of consumers.

About the AAii 306 Motor Insurance Exam

Motor Insurance (subject 306) is an AAii Level 1 elective administered by the Asian Institute of Insurance (Aii), formerly the Malaysian Insurance Institute (MII). It develops technical knowledge of Malaysian motor products, compulsory insurance under the Road Transport Act 1987, underwriting and rating (including PIAM NCD scales), and motor claims practice used by agents, brokers, claims handlers, and underwriters. Assessment is mixed: coursework counts for 60% and a 50-question MCQ final within 90 minutes counts for 40%, with a 70% combined pass mark.

Assessment

AAii Level 1 elective: 60% coursework and 40% final examination of 50 multiple-choice questions

Time Limit

90 minutes (final MCQ paper)

Passing Score

70% combined coursework and final examination marks

Exam Fee

About RM700 self-study or RM1,800 class-based per subject (inclusive of e-book and exam fees as published); plus RM100 registration and RM100 membership for new individual enrolments (Asian Institute of Insurance (Aii), formerly Malaysian Insurance Institute (MII))

AAii 306 Motor Insurance Exam Content Outline

~18%

Legal and Regulatory Framework

Compulsory third-party insurance under the Road Transport Act 1987, certificates of insurance, Motor Insurers' Bureau arrangements, BNM regulation, PIAM practice, and motor tariff liberalisation.

~22%

Motor Products and Scope of Cover

Act, third-party, third-party fire and theft, and comprehensive covers; common endorsements and extensions; territorial limits; and standard exclusions.

~28%

Underwriting and Rating

Material facts and proposals, rating factors, sum insured and average, voluntary and compulsory excesses, private-car and motorcycle NCD, fleets, and premium workings.

~20%

Motor Claims

Notification, Own Damage Knock-for-Knock, approved repairers, total loss and theft, salvage, subrogation and contribution, and third-party injury/property claims.

~12%

Market Practice and Distribution

Private versus commercial use, cash-before-cover, intermediary roles, Central NCD Database checks, and consumer disclosure.

How to Pass the AAii 306 Motor Insurance Exam

What You Need to Know

Passing score: 70% combined coursework and final examination marks
Assessment: AAii Level 1 elective: 60% coursework and 40% final examination of 50 multiple-choice questions
Time limit: 90 minutes (final MCQ paper)
Exam fee: About RM700 self-study or RM1,800 class-based per subject (inclusive of e-book and exam fees as published); plus RM100 registration and RM100 membership for new individual enrolments

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

AAii 306 Motor Insurance Study Tips from Top Performers

1Memorise the four main cover types—Act, third-party, TPFT, and comprehensive—and what each does and does not pay for.

2Learn private-car NCD steps (25%, 30%, 38.33%, 45%, 55%) and motorcycle NCD (15%, 20%, 25%) and how a claim usually resets entitlement.

3Know when voluntary excess and the additional RM400 compulsory excess apply (under 21, P/L licence, or unnamed driver).

4Practice average-clause under-insurance examples and when market valuation systems help set sum insured.

5Walk through claims paths: FNOL within typical notification windows, OD-KFK versus own-damage claims, and when NCD is protected.

6Use official Aii study materials and coursework first; treat this bank as extra MCQ drill aligned to Malaysian market practice.

Frequently Asked Questions

What is AAii Level 1 Motor Insurance (306)?

It is an elective subject in the Associateship of Asian Institute of Insurance (AAii) Level 1 programme. Subject 306 focuses on Malaysian motor insurance products, law, underwriting, rating, and claims. Completing three compulsory and three elective Level 1 subjects leads toward the AAii Level 1 award.

How is the 306 Motor Insurance subject assessed?

Elective subjects use mixed assessment: 60% coursework and 40% final examination. The final paper is 50 multiple-choice questions to be completed within 90 minutes. The pass mark is 70% on the combination of coursework and final examination marks.

How much does AAii Level 1 Motor Insurance cost?

Aii publishes Level 1 subject fees of about RM700 for self-study and about RM1,800 for class-based study per subject (fees stated as inclusive of e-book and exam). New individual students also pay student registration and membership fees (commonly RM100 each). Confirm current fees on aiiasia.org before enrolling.

Is the official exam only 50 questions? Why are there 100 practice questions?

Yes. The official final MCQ paper is 50 questions. This practice bank expands the same motor product, underwriting, and claims topic areas to 100 questions so you can drill more scenarios before the shorter timed paper.

What Malaysian motor rules should I know for this subject?

Key areas include compulsory insurance under the Road Transport Act 1987, differences between Act/third-party/TPFT/comprehensive covers, PIAM private-car and motorcycle NCD scales, excesses (including the common RM400 compulsory excess situations), average for under-insurance, cash-before-cover, and claims routes such as Own Damage Knock-for-Knock.