The Takaful and Insurance Benefits Protection System (TIPS) is a system established by the Government to protect owners of takaful certificates and insurance policies from the loss of their eligible takaful or insurance benefits in the event that an insurer member fails and is unable to honour the takaful or insurance benefits. Takaful operators and insurance companies that are member institutions of PIDM are also referred to as ‘insurer members’.

TIPS came into effect on 31 December 2010 and is administered by PIDM.


Benefits to takaful certificate and insurance policy owners

  • PIDM protects you against the loss of your eligible takaful or insurance benefits  should an insurer member fail
  • The protection is provided by PIDM automatically - no application is required

Benefits to the financial system

  • PIDM promotes public confidence in Malaysia’s financial system by protecting takaful certificate and insurance policy owners against the loss of their benefits
  • PIDM reinforces and complements the existing regulatory and supervisory framework by providing incentives for sound risk management in the financial system
  • PIDM minimises costs to the financial system by finding least cost solutions to resolve non-viable insurer members
  • PIDM contributes to the stability of the financial system by dealing with non-viable insurer member expeditiously