Kuala Lumpur, 21 January 2021:
Perbadanan Insurans Deposit Malaysia (PIDM) has announced several enhancements to its Takaful and Insurance Benefits Protection System (TIPS), effective January 2021.
With the new enhancements, PIDM removes most exceptions to the protection scope under TIPS. PIDM now protects all benefits under the takaful and insurance products that are currently available in the market excluding non-ringgit denominated benefits, benefits from policies issued outside of Malaysia and the specific maturity, surrender and income benefits under unit portion of investment-linked policies. The protection provided by PIDM is up to specified limits, in the unlikely event an insurer member fails.
Rafiz Azuan Abdullah, Chief Executive Officer of PIDM, said the enhancements ensured that TIPS remains current and relevant for today’s product offerings. The enhancements to TIPS allow more benefits to be protected and hence better protection for consumers.
“We also wanted to remove complexities associated with TIPS protection to make it easier for consumers to understand the protection scope and limits,” said Rafiz.
“Given the importance of takaful and insurance protection in easing the burden of unexpected events, such as shown in the current pandemic, we hope the wider TIPS protection will provide peace of mind for consumers and encourage more to take up takaful certificates and insurance policies.”
To be eligible for protection, takaful and insurance products must be denominated in Ringgit and issued in Malaysia by a PIDM insurer member. The public is urged to check the PIDM website (www.pidm.gov.my
) for details concerning benefits protected, benefits not protected, the limits of protection as well as the list of PIDM insurer members so that they have an accurate understanding of TIPS coverage.
TIPS came into effect on 31 December 2010 to provide protection to takaful certificate and insurance policy owners alongside the Deposit Insurance System, which has been administered by PIDM since its establishment in 2005.
PIDM's insurer members are all takaful operators licensed under the Islamic Financial Services Act 2013, other than a takaful operator licensed to carry on solely retakaful business and an international takaful operator, as well as insurance companies licensed under the Financial Services Act 2013, other than an insurer licensed to carry on solely reinsurance business and Danajamin Nasional Berhad.
For more information on TIPS, visit www.pidm.gov.my
|For more information about this press release, please contact:
Sarina Ariffin, Deputy General Manager, Communications and Public Affairs Division (Tel: 03-2173 7457; Email: email@example.com)
Masami Mustaza, Manager, Communications and Public Affairs Division
(Tel: 016-3643406; Email: firstname.lastname@example.org)
PIDM is a statutory body that provides protection, up to prescribed limits, against the loss of deposits and insurance or takaful benefits in the event of a member institution 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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