 |
Funding |
Given PIDM’s expanded mandate to administer both the deposit insurance system and the Takaful and Insurance Benefits Protection System (TIPS), PIDM manages six separate and distinct funds:
Deposit Insurance System
Islamic Deposit Insurance Fund
Conventional Deposit Insurance Fund
Takaful and Insurance Benefits Protection System (TIPS)
Family Solidarity Takaful Protection Fund
General Takaful Protection Fund
Life Insurance Protection Fund
General Insurance Protection Fund
Deposit Insurance System
Since PIDM provides protection for both conventional and Islamic deposits, PIDM maintains and administers two separate funds:
- Conventional Deposit Insurance Fund
All premiums and/or other monies received by PIDM and assets received or vested in PIDM, as well as all expenditures incurred, in respect of conventional deposits
- Islamic Deposit Insurance Fund
All premiums and/or other monies received by PIDM and assets received or vested in PIDM, as well as all expenditures incurred, in respect of Islamic deposits
Takaful and Insurance Benefits Protection System (TIPS)
Since PIDM provides protection for both takaful and insurance benefits, PIDM maintains and administers four separate funds:
- Family Solidarity Takaful Protection Fund
All premiums and/or other monies received by PIDM and assets received or vested in PIDM, as well as all expenditures incurred, in respect of family solidarity takaful certificates
- General Takaful Protection Fund
All premiums and/or other monies received by PIDM and assets received or vested in PIDM, as well as all expenditures incurred, in respect of general takaful certificates
- Life Insurance Protection Fund
All premiums and/or other monies received by PIDM and assets received or vested in PIDM, as well as all expenditures incurred, in respect of life policies
- General Insurance Protection Fund
All premiums and/or other monies received by PIDM and assets received or vested in PIDM, as well as all expenditures incurred, in respect of general policies
PIDM will manage and invest the Funds prudently to generate a reasonable return for PIDM while ensuring that the Funds are readily available to cover operating costs and make payments to depositors as well as owners of takaful certificates and insurance policies in the event of a member institution failure.
The Islamic Deposit Insurance Fund and Takaful Protection Funds are managed in accordance with appropriate guidelines in line with Shariah principles.
PIDM currently invests its funds only in safe and liquid instruments such as Ringgit denominated securities issued or guaranteed by the Government or Bank Negara Malaysia (BNM).