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:
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.
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:
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