PIDM

Funding

Funding

PIDM's operations are funded by annual premiums and levies collected from member institutions. The Corporation administers six separate and distinct funds:

 
  • Islamic Deposit Insurance Fund
  • Conventional Deposit Insurance Fund
  • Family Solidarity Takaful Protection Fund
  • General Takaful Protection Fund
  • Life Insurance Protection Fund
  • General Insurance Protection Fund
 
Deposit Insurance System (DIS)

As PIDM provides protection for both conventional and Islamic deposits, it maintains and administers two separate funds:

  • Conventional Deposit Insurance Fund
    All premiums received by PIDM from member banks providing conventional banking services and interest earned, minus the direct cost of operating the conventional DIS.
  • Islamic Deposit Insurance Fund
    All premiums received by PIDM from Islamic member banks or commercial member banks providing Islamic banking services and returns made, minus the direct costs of operating the Islamic DIS.
 
Takaful and Insurance Benefits Protection System (TIPS)

As PIDM provides protection for both takaful and insurance benefits, it maintains and administers four separate funds:

  • Family Solidarity Takaful Protection Fund
    All premiums received by PIDM from insurer members conducting family takaful business and returns made, minus the direct costs of operating TIPS.
  • General Takaful Protection Fund
    All premiums received by PIDM from insurer members conducting general takaful business and returns made, minus the direct costs of operating TIPS.
  • Life Insurance Protection Fund
    All premiums received by PIDM from insurer members conducting life insurance business and interest earned, minus the direct costs of operating TIPS.
  • General Insurance Protection Fund
    All premiums received by PIDM from insurer members conducting general insurance business and interest earned, minus the direct costs of operating TIPS.

PIDM will manage and invest the Funds prudently to generate reasonable returns 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.

PIDM currently invests its funds only in safe and liquid instruments such as Ringgit Malaysia-denominated securities issued or guaranteed by the Government or Bank Negara Malaysia (BNM).

The Islamic Deposit Insurance Fund and Takaful Protection Funds are managed and administered in accordance with Shariah principles.