Deposit Insurance System (FAQs) Q1: What is deposit insurance? A: Deposit Insurance is a system that protects depositors, whether individuals or businesses, against the loss of their insured deposits in the unlikely event of a member bank failure. The Deposit Insurance System (DIS) in Malaysia is administered by PIDM. Q2: Which banks are member institutions of PIDM? A: All commercial banks licensed under the Financial Services Act (FSA) 2013 and all Islamic banks licensed under the Islamic Financial Services Act (IFSA) 2013, including locally incorporated subsidiaries of foreign banks operating in Malaysia, are member institutions of PIDM. Membership is compulsory as provided under Akta Perbadanan Insurans Deposit Malaysia. Commercial and Islamic banks which are member institutions of PIDM are referred to as ‘member banks’. Look out for this membership sign at the entrance of your bank branches. Q3: Must I apply or register for deposit insurance protection? A: No, you do not need to apply or register for deposit insurance protection by PIDM. Deposit insurance is provided automatically for eligible deposit accounts placed with member banks. Q4: What is the deposit insurance protection limit? A: Your eligible deposits are protected up to RM250,000 per depositor per member bank. The RM250,000 limit includes both the principal amount of a deposit and the interest/return. The limit also applies separately to Islamic and conventional deposits. Q17: What about the uninsured portion of the deposits? A: Depositors may file a claim with the liquidator of the member bank to recover any amount above the insured amount. Q5: Can I buy additional protection for my deposits if the amount is more than RM250,000? A: No. Deposit insurance cannot be purchased as it is not a general or life insurance product. It is provided automatically by the Government through PIDM. Q6: Which types of deposits are eligible for protection? A: Deposits which are eligible for protection include savings and current accounts, fixed deposits, foreign currency deposits, principal-guaranteed conventional structured products, Islamic deposit accounts as well as bank drafts, cheques, other payment instructions or instruments made against a deposit account. Q7: Which types of products are NOT protected? A: Conventional structured products that are not principal-guaranteed, deposits not payable in Malaysia, interbank money market placements, negotiable instruments of deposit (NIDs) and other bearer deposits, repurchase agreements, unit trusts, stocks and shares, as well as gold-related investment products or accounts are not protected by PIDM. Q8: Are unit trusts, stocks and shares eligible for deposit insurance protection? A: No. Unit trusts, stocks and shares are not eligible for deposit insurance protection. Q09: How will I know if my deposits are eligible for deposit insurance protection? A: PIDM member banks must inform you whether a deposit product is eligible or not eligible for deposit insurance protection before you place your funds with it. All eligible deposit products are listed in a register available at your bank. These requirements are in line with the Malaysia Deposit Insurance Corporation (Provision of Information on Deposit Insurance) Regulations 2011 to ensure member banks provide accurate, relevant and timely information on deposit insurance protection and coverage. Q10: Are Islamic and conventional deposits protected separately? A: Yes. Islamic and conventional deposits are eligible for a separate deposit insurance limit of RM250,000 per depositor per member bank. Q11: I have deposits in several member banks. Will all my deposits be added up for deposit insurance protection purposes? A: No. Your deposits in different member banks are protected separately. The RM250,000 deposit insurance limit is applicable per depositor per member bank. Q12: I have deposits in different branches of the same member bank. Will all my deposits be protected separately? A: No. Deposits held in different branches of the same member bank will be added together for deposit insurance protection purposes. Q13: Are there any deposit accounts that are protected separately? A: Joint accounts – Joint accounts enjoy separate deposit insurance protection provided the records of the member bank disclose the names of the joint account holders. Trust accounts – Beneficiaries will enjoy separate protection if the trustee discloses the interest of each beneficiary and the amounts owed to each beneficiary on the records of the member bank. Each beneficiary of the trust account is protected up to RM250,000 separately from other insured deposits held in their individual names. Accounts held by sole proprietorships, partnerships, professional practices and companies. An example of how separate deposit insurance protection is applied for a depositor holding several accounts in a member bank is as follows: Depositor Type of deposit Amount (RM) Protected by PIDM (RM) Ahmad Savings 300,000 250,000 Ahmad and wife Current 300,000 250,000 Ahmad, wife and daughter Savings 250,000 250,000 Ahmad, Leong & Co. (legal firm) Current 200,000 200,000 Ahmad & Ali Sdn. Bhd. Current 50,000 50,000 Total deposits 1,100,000 Total deposits protected by PIDM 1,000,000 Q14: As foreign currency deposits also enjoy deposit insurance coverage, are they separately protected from Ringgit deposits? A: No. Unlike Islamic and conventional deposits, Ringgit and foreign currency deposits are not separately protected if they are placed in the same member bank. Foreign currency deposits will be converted to Ringgit and aggregated with other deposits (e.g. savings, current and fixed deposits) for protection of up to RM250,000. Q15: What happens to my deposits if two member banks merge? A: You will continue to enjoy separate deposit insurance coverage for a period of two years or upon maturity or until full withdrawal of the deposit, whichever is earlier. Q16: In the unlikely event of a member bank failure, how do I make a deposit insurance claim? A: You do not need to make a claim. PIDM will announce how and when reimbursement of insured deposits will be made. PIDM will base its reimbursement on the depositor records obtained from the member bank. It is important to keep your records updated at your bank. Q18: I am a non-resident of Malaysia. Are my deposits protected? A: Your place of residence or nationality does not affect deposit insurance protection. Deposits placed with a member bank of PIDM is protected up to RM250,000 per depositor per member bank. Q19: Are deposits in branches and subsidiaries of domestic banks outside Malaysia protected? A: No, PIDM does not protect deposits held in these institutions. However, these may be protected by the host country’s deposit insurance or protection scheme. Q20: Who do I contact for further information? A: Call PIDM's toll-free information line: 1-800-88-1266, available Mondays to Fridays from 8.30 am to 5.30 pm or email to: firstname.lastname@example.org.