THE Perbadanan Insurans Deposit Malaysia (PIDM) has made several enhancements to its Takaful (Islamic bonds) and Insurance Benefits Protection System (TIPS) effective January 2021 by removing most exceptions to the latter’s protection scope.
TIPS was introduced in 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.
Given the importance of takaful and insurance protection in easing the burden of unexpected events during the current pandemic situation, the new enhancements allow more benefits to be protected.
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.
Meanwhile, the protection provided by PIDM is up to specified limits in the unlikely event an insurer member fails.
Rafiz Azuan Abdullah, CEO of PIDM, said the enhancements ensured that TIPS remains current and relevant for today’s product offerings.
“We also wanted to remove complexities associated with TIPS protection to make it easier for consumers to understand the protection scope and limits,” Rafiz added.
In addition, PIDM also hopes 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. – Jan 21, 2021
