Kuala Lumpur, 23 July 2013: Perbadanan Insurans Deposit Malaysia (PIDM) today released its Annual Report 2012, which outlines its continued efforts to ensure operational readiness and the completion of new key initiatives to promote sound risk management in the financial system.
“I am pleased to report that PIDM has implemented the Board-approved key initiatives for the year as set out in our published Corporate Plan 2012 – 2014, within the approved financial plan,” said Jean Pierre Sabourin, Chief Executive Officer of PIDM.
For the financial year ended 31 December 2012, PIDM recorded total revenues of RM263 million, comprising RM214.3 million in premiums and RM48.7 million in investment income, as compared to budgeted revenues of RM248.7 million. Operating expenditures totalled RM75.3 million against a budget of RM95 million, representing a positive variance of 21%. As a result, the Corporation’s net surplus for the year totalled RM187.7 million.
As at end of 2012, PIDM’s total Deposit Insurance Funds (DIFs) amounted to RM617.1 million, while its Takaful and Insurance Benefits Protection Funds (TIPFs) totalled RM1.1 billion. The DIFs and TIPFs are accumulated reserves that will be used to cover any losses that may arise from providing protection to depositors and policy owners respectively.
The DIFs comprise the Conventional Deposit Insurance Fund and the Islamic Deposit Insurance Fund, while the TIPFs comprise four funds established for the administration of the Takaful and Insurance Benefits Protection System (TIPS), that is, the General Insurance Protection Fund, the Life Insurance Protection Fund, the General Takaful Protection Fund and the Family Solidarity Takaful Protection Fund.
“In the course of promoting sound risk management in the financial system, in 2012 PIDM also completed the development of the Differential Levy System (DLS) framework for conventional insurer members. This DLS framework was implemented for the first time in 2013, with relevant members submitting their returns and levies by 31 May 2013.” he said. The Differential Premium Systems (DPS) for member banks has been implemented since 2008.
“Under both systems, member institutions with lower risk profiles pay lower premiums or levies than those with higher risk profiles. This provides incentives for member institutions to enhance their risk management practices and introduces greater fairness in the premium and levy assessment processes.”
“Apart from these initiatives, in 2012 we also enhanced public awareness about PIDM and our protection systems, namely the Deposit Insurance System (DIS) and TIPS,” added Mr Sabourin.
“Our nationwide consumer survey carried out at the end of 2012 showed a marked increase in public awareness about PIDM, DIS and TIPS. Awareness of PIDM increased to 48% compared to 40% in 2011, awareness about the DIS rose to 42% from 27% in 2011 and awareness about TIPS was at 34%, surpassing the targets set for the year.”
Other notable achievements for PIDM in 2012 included the receipt of the “Best Annual Report of Non-Listed Organisations” at the National Annual Corporate Report Awards (NACRA) for its 2011 Annual Report, for the fourth consecutive year. PIDM also received recognition for its 2011 advertising campaign, with the receipt of the “Bronze Winner for the Best Brand-Building Campaign Award” from the Malaysian Chapter of the Promotion Marketing Awards of Asia (PMAA).
The Annual Report 2012 is available at the PIDM website (www.pidm.gov.my) in four languages – Bahasa Malaysia, English, Chinese and Tamil.
For more information about this press release, kindly contact:
Rozita Ahmad, General Manager, Communications and Public Affairs Division
(Tel: 03-2173 7455; 017 – 307 5130; Email: firstname.lastname@example.org)
Juli Murshidah, Manager, Communications and Public Affairs Division
(Tel: 03-2173 7465; Email: email@example.com)
PIDM administers the statutory Deposit Insurance System and the Takaful and Insurance Benefits Protection System in Malaysia. Through these systems, depositors as well as owners of takaful certificates and insurance policies now enjoy legislated and explicit protection for their eligible bank deposits and takaful and insurance benefits.
For further information:
PIDM protects your deposits in the bank as well as your takaful and insurance benefits in the unlikely event of a failure of a member bank or a takaful operator / insurance company.