For Public

Takaful and Insurance Benefits Protection System (TIPS)

Coverage For TIPS

The takaful and insurance benefits protected under the Takaful and Insurance Benefits Protection System (TIPS) and related limits are set out in Tables 1 and 2 below.

Table 1: Protected Benefits for Family Takaful and Life Insurance

 
TABLE 1
FAMILY TAKAFUL / LIFE INSURANCE
Benefits Protected  Maximum Limit (Individual or Group Policies/Plans)
Death and related benefits RM500,000
Permanent disability RM500,000
Critical illness RM500,000
Maturity value (excluding unit portion of investment-linked policies) RM500,000
Surrender value RM500,000
Accumulated cash dividends RM100,000
Disability income RM10,000 per month
Annuity income RM10,000 per month
Medical expenses 100% of expenses incurred
Refundable prepaid premiums 100% of amount prepaid

Table 2: Protected Benefits for General Takaful and General Insurance
 
TABLE 2
GENERAL TAKAFUL / GENERAL INSURANCE
Benefits Protected  Maximum Limit (Policies/Plans)
Loss of or damage to property in relation to:
  • an immovable property located in Malaysia
  • a motor vehicle registered in Malaysia or a foreign registered vehicle insured to drive in Malaysia
  • a ship, aircraft or other movable property insured by a citizen or qualified person1
  • RM500,000 per property
Death and related benefits RM500,000
Permanent disability RM500,000
Critical illness  RM500,000
Disability income RM10,000 per month
Medical expenses 100% of expenses incurred
In relation to indemnification against claims by a third party:
  • loss of or damage to eligible third party immovable or movable property
  • death and related benefits
  • permanent disability
  • illness or bodily injury
  • disability income
  • medical expenses
 
  • RM500,000 per property
  • RM500,000
  • RM500,000
  • RM500,000
  • RM10,000 per month
  • 100% of expenses incurred
Refundable prepaid premiums 100% of amount prepaid

To be eligible for protection under TIPS, the takaful certificate or insurance policy must be issued in Malaysia by an insurer member and be denominated in Ringgit Malaysia. Any claims by certificate or policy owners will be subject to the conditions and limits specified in their takaful or policy contracts.

1Qualified person includes resident, corporation, statutory body, local authority, embassy, the Government or any State Government, society, trade union, cooperative society, partnership or any other body, organisation, association or group of persons, whether incorporated or unincorporated, in Malaysia. 


Examples of Takaful and Insurance Benefits NOT eligible for protection
  • Takaful certificates and insurance policies denominated in foreign currencies
  • Loss of profit, pecuniary loss incurred due to acts of dishonesty by employees and damage payable for professional negligence
  • Investment portion of investment-linked takaful certificates or insurance policies