PIDM protection is free

Kuala Lumpur, 28 May 2019: The protection provided to bank depositors, Takaful certificate and insurance policy holders by Perbadanan Insurans Deposit Malaysia (PIDM) is automatic and free.
Rafiz Azuan Abdullah, Chief Executive Officer of PIDM, said there has been a rise in complaints from members of the public who were asked to pay for PIDM protection this year. In most incidents, complainants were asked to pay to "activate" the protection in order to receive funds, usually in the form of loans, from a third party.
“PIDM would like the public to know that PIDM’s protection is automatic and free for depositors. This information is available on our website, and in our advertisements and brochures. We ask the public to be vigilant and to alert the relevant authorities if asked to pay for PIDM protection,” said Rafiz.

Many of these incidents, logged through enquiries received through PIDM’s call centre and e-mail, involve persons who were applying for loans through money lenders. Complainants were asked to pay for administrative and legal fees, and in some incidents, a separate fee to register a new bank account before the loan is released to them.

“Those who know about PIDM’s free protection tend to check with us but the rest are not so lucky. According to these complaints, thousands of ringgit in payment were paid before complainants contacted PIDM,” said Rafiz.

“We would like to remind the public that PIDM’s member institutions do not include money lenders. PIDM’s protection also does not cover loans and other non-deposit products.”

Member institutions of PIDM include all commercial conventional and Islamic banks, insurance companies; both general and life, and Takaful operators.

The public is advised to call PIDM’s call centre at 1800-88-1266 or e-mail for clarification. Members of the public are also reminded not to disclose their financial information, in particular their bank account or credit card details, to third parties.

PIDM is a Government agency established under the PIDM Act to administer the Deposit Insurance System (DIS) and the Takaful and Insurance Benefits Protection System (TIPS).

PIDM protects depositors, whether individuals or businesses, against the loss of their insured bank deposits  and owners of Takaful certificates and insurance policies from the loss of their eligible Takaful and insurance benefits, in the event of a failure of its member institutions.

For more information on the protection systems PIDM administers and a list of member institutions, contact our call centre at 1800-88-1266 or visit our website at
For more information about this press release, please contact:   

Masami Mustaza, Manager, Communications and Public Affairs Division
(Tel: 016-3643406; Email:
PIDM is a statutory body that provides protection against the loss of deposits and insurance or takaful benefits with its member institutions in the event of a failure. PIDM is entirely funded by premiums or levies assessed on its member institutions and does not receive public funds to operate. It has the means under the PIDM Act to borrow or raise such funds as may be needed to fulfil its statutory obligations to protect financial consumers of its member institutions. As an integral part of the national financial safety net, PIDM promotes and contributes to the stability of the financial system.

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