PIDM Takaful and Insurance Benefits Protection System

PIDM member insurers:

Insurance Companies

AIA Bhd.
AIA General Berhad
AIG Malaysia Insurance Berhad
Allianz General Insurance Company (Malaysia) Berhad
Allianz Life Insurance Malaysia Berhad
AmMetLife Insurance Berhad
Generali Insurance Malaysia Berhad
Generali Life Insurance Malaysia Berhad
Berjaya Sompo Insurance Berhad
Chubb Insurance Malaysia Berhad
Etiqa General Insurance Berhad
Etiqa Life Insurance Berhad
FWD Insurance Berhad (formerly known as Gibraltar BSN Life Berhad)
Great Eastern General Insurance (Malaysia) Berhad
Great Eastern Life Assurance (Malaysia) Berhad
Hong Leong Assurance Berhad
Liberty General Insurance Berhad (formerly known as AmGeneral Insurance Berhad)
Lonpac Insurance Berhad
Manulife Insurance Berhad
MCIS Insurance Berhad
MSIG Insurance (Malaysia) Bhd.
Pacific & Orient Insurance Co. Bhd
Progressive Insurance Bhd.
Prudential Assurance Malaysia Berhad
QBE Insurance (Malaysia) Berhad
RHB Insurance Berhad
Sun Life Malaysia Assurance Berhad
The Pacific Insurance Berhad
Tokio Marine Insurans (Malaysia) Berhad
Tokio Marine Life Insurance Malaysia Bhd.
Tune Insurance Malaysia Berhad
Zurich General Insurance Malaysia Berhad
Zurich Life Insurance Malaysia Berhad

Takaful Operators

AIA PUBLIC Takaful Bhd
AmMet Life Takaful Berhad
Etiqa Family Takaful Berhad
Etiqa General Takaful Berhad
FWD Takaful Berhad
Great Eastern Takaful Berhad
Hong Leong MSIG Takaful Berhad
Prudential BSN Takaful Berhad
Sun Life Malaysia Takaful Berhad
Syarikat Takaful Malaysia Am Berhad
Syarikat Takaful Malaysia Keluarga Berhad
Takaful Ikhlas Family Berhad
Takaful Ikhlas General Berhad
Zurich General Takaful Malaysia Berhad
Zurich Takaful Malaysia Berhad

*

denotes this bank provides Islamic banking business under the Skim Perbankan Islam (SPI). SPI is defined by Bank Negara Malaysia as the Islamic banking scheme provided by licensed institutions to conduct banking business based on Islamic principles.

**

Licensed digital banks

Example:

Mr Lim is employed with Troton Bhd and is insured under his employer's Group Term policy for RM200,000. He also has a Whole Life policy and an Endowment policy for himself (sum insured of RM300,000 under each policy). All the policies were bought from XYZ Insurance Bhd. In January 2021, he died in an accident.

	Group Term Policy	Whole Life Policy	Endowment Policy
Policy Owner	Troton Bhd	Mr. Lim	Mr. Lim
Insurer Member	XYZ Insurance Bhd.	XYZ Insurance Bhd.	XYZ Insurance Bhd.
Risk Event	Death	Death	Death
Life Insured	Mr. Lim	Mr. Lim	Mr. Lim
Aggregation rule applies?	NO	Will be aggregated based on “same policy owner, same insurer member, same risk event and same life insured”.

Policy	Sum Insured	Amount Protected Under TIPS
Group Term Policy	RM200,000	RM200,000
Whole Life Policy	RM300,000	Capped at RM500,000
Whole Life Policy	RM300,000	Capped at RM500,000

Example:

Mr. and Mrs. Tan purchased several life insurance policies for their family from the same insurer member.

Policy Owner: Mr. Tan		Policy Owner: Mrs. Tan
Life insured	Amount insured	Life insured	Amount insured
Policy 1 - Son (Adam)	RM200,000	Policy 4 - Son (Adam)	RM100,000
Policy 2 - Daughter (Alice)	RM150,000	Policy 5 - Son (Adam)	RM50,000
Policy 3 - Mr. Tan	RM600,000	Policy 6 - Mrs. Tan	RM400,000
Scenario 1: Death of Adam
Amount claimable under Mr. Tan's policies		RM200,000 (Policy 1)
Amount claimable under Mrs. Tan's policies (RM100,000 + RM50,000)		RM150,000 (Policy 4 and 5)
Total amount claimable under TIPS		RM350,000
Scenario 2: Death of Mr. Tan
Amount claimable under Mr. Tan's policies		RM600,000 (Policy 3)
Total amount claimable under TIPS		RM500,000*

* Maximum limit under TIPS

Deposits held jointly are protected separately from other types of deposit accounts. In addition, joint accounts held with different joint account holders enjoy separate protection. However, the maximum protection for a joint account is RM250,000 collectively and not RM250,000 per joint account holder.

Example:

Account Holder	Type of Account	Amount (RM)	Protected (RM)
Daniel	Individual	50,000	50,000
Daniel and wife	Joint (Savings)	50,000	100,000
Daniel and wife	Joint (Current)	50,000	100,000
Daniel, wife and son	Joint	260,000	250,000
Daniel, wife and daughter	Joint	240,000	240,000
Protected by PIDM		650,000	640,000

There is a total deposit insurance protection of RM640,000 comprising:

Coverage of RM50,000 for Daniel’s individual account
Coverage of RM100,000 for Daniel and wife’s joint accounts
Coverage of RM250,000 for Daniel, wife and son’s joint account
Coverage of RM240,000 for Daniel, wife and daughter’s joint account

For joint accounts, the deposits are eligible for separate deposit insurance protection provided:

the deposit account is placed as a joint account;
the deposit account is eligible for deposit insurance protection; and
details of each joint account holder are disclosed on the records of the member bank including the names, addresses and identity card numbers or passport numbers.

Islamic and conventional deposits are eligible for a separate protection limit of RM250,000.

Example:

Account Holder	Type of Account	Amount (RM)	Protected (RM)
Zita	Conventional savings	150,000
Zita	Conventional current	150,000
	Total conventional	300,000	250,000
	Islamic savings	275,000	250,000
	Total deposits	575,000	500,000

Zita’s total deposit insurance protection is RM500,000 comprising RM250,000 on her conventional deposits and RM250,000 on her Islamic deposits.

Deposits held under a sole proprietorship, partnership or company or held by a depositor who carries on a professional practice are separately protected, provided that such ownership information is disclosed on the records of the member banks. In the case of partnerships, professional practices or companies, the maximum protection for such entities is RM250,000 collectively and not RM250,000 per partner.

Example:

Account Holder	Type of Deposit	Type of Account	Amount (RM)	Protected (RM)
Maria	Individual	Savings	300,000	250,000
Maria, Leong & Co (legal firm)	Professional practice	Current	280,000	250,000
Maria Flowers and Gifts Sdn. Bhd.	Individual	Current	180,000	180,000
		Total deposits	760,000	680,000

There is a total deposit insurance protection of RM680,000 comprising:

Coverage of RM250,000 for Maria’s personal account held as an individual
Coverage of RM250,000 for Maria, Leong & Co
Coverage of RM180,000 for Maria Flowers and Gifts Sdn. Bhd.

Deposits in trust accounts (including client deposit accounts held by professional practices and deposit account held in trust for an approved e-money scheme) are protected separately from deposits in other types of accounts.

A trust account is held by a trustee for the benefit of one or more beneficiaries.

Beneficiaries of trust accounts can receive separate deposit insurance protection if the accounts are eligible for deposit insurance protection, and the trustee discloses the interest of each beneficiary or the amounts owed to each beneficiary on the records of a member bank.

PIDM can deny protection on any trust account if, in its opinion, the trust exists primarily for obtaining or increasing deposit insurance protection.

a. several accounts for the same beneficiary in the same member bank

All deposits will be added together and protected up to RM250,000.

Example:

Rena has two deposit accounts in trust for her son in the same member bank.

Account Holder	Beneficiary	Amount (RM)
1 Rena as trustee	Son	150,000
2 Rena as trustee	Son	150,000
	Protected	250,000

b. several accounts for different beneficiaries in the same member bank

Example:

Rena has two deposit accounts in trust for her son in the same member bank.

Account Holder	Beneficiary	Amount (RM)	Protected (RM)
1 Rena as trustee	Son	260,000	250,000
2 Rena as trustee	Son	150,000	250,000
	Total deposits	520,000	250,000

The total deposit insurance protection is RM500,000 comprising RM250,000 for his son and RM250,000 for his daughter.

Your Insurance and Takaful Benefits Protect You From Unexpected Event?

But who protects you if your insurance company or takaful operators fails?

PIDM lah!

How much do i need to pay to get this protection?

So, what kinda insurance and takaful TIPS cover?

Takaful and Insurance Benefits Protection System (TIPS)

Benefits protected under the eligible certificate or policy*

Is there any limit of protection under PIDM's TIPS?

What happensif you have multiple policies and or certificate with more than one insurer member?

Lets see some sample onHow Aggregation Rules Work

How do I know ifan insurance company is a PIDM member?

How do I know ifan insurance company is a PIDM member?

Here's a video to help you understand better

What Should You DoIf Your Insurance Company or Takaful Operator Fails?

Do Nothing

PIDM will take action to ensure that you can still have access to your money.

So, right now

what can I do as a financial consumer?

Why PIDM Protection

Matters?

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