The protected benefits under TIPS will be aggregated only if they relate to the same insurer member, same risk event, same life insured or insured property, and same takaful certificate or insurance policy owner. The aggregation rule is further illustrated in the examples below:

Illustration 1: 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.

In the event of failure of XYZ Insurance Bhd, the application of the aggregation rule and the payment of protected benefit (i.e. death and related benefits) that will be made to Mr Lim is as follows:

  Group Term Policy Whole Life Policy Endowment Policy
Policy Owner Troton Bhd Mr Lim Mr Lim
Insurer Member XYZ Insurance XYZ Insurance XYZ Insurance
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”.
Amount Claimed RM200,000 RM300,000 RM300,000
Amount Protected Under TIPS RM200,000 Capped at RM500,000
 

Illustration 2: Ms. Liza owns two cars and bought the motor insurance policy for both her cars (ABC 666 & IJK 888) with XYZ Insurance Bhd and had filed the following claims with the insurance company and both the claims had not been settled yet.

 
Date Event Description Details of Claim
2 January 2021 Ms. Liza’s car (ABC 666) was damaged in an accident Claim 1 - Property damage for RM600,000
15 January 2021 Ms. Liza’s car (IJK 888) was damaged in an accident Claim 2 - Property damage for RM350,000

In the event of failure of XYZ Insurance Bhd, the application of the aggregation rule and the payment of protected benefit (i.e. loss of or damage to property) that will be made to Ms. Liza are as follows:

 
  Claim 1 Claim 2
Policy Owner Ms. Liza Ms. Liza
Insurer Member XYZ Insurance Bhd XYZ Insurance Bhd
Risk Event Accident on 2 January 2021 Accident on 15 January 2021
Property Insured Car - ABC 666 Car - IJK 888
Aggregation Rule Applies? NO (not aggregated because the risk event & property insured are different) NO (not aggregated because the risk event & property insured are different)
Amount Claimed RM600,000 RM350,000
Amount Protected Under TIPS RM500,000 RM350,000