BUSINESS

PIDM ENHANCES TAKAFUL AND INSURANCE BENEFITS PROTECTION SYSTEM

21/01/2021 11:25 AM

KUALA LUMPUR, Jan 21  -- Perbadanan Insurans Deposit Malaysia (PIDM) has enhanced  its Takaful and Insurance Benefits Protection System (TIPS) by removing most exceptions to the protection scope effective this month.

The government agency said it 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, PIDM said in a statement today.

Chief executive officer Rafiz Azuan Abdullah said the enhancements, which allow more benefits to be protected and hence give better protection to consumers, ensure 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.

“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,” he said.

To be eligible for protection, takaful and insurance products must be denominated in the ringgit and issued in Malaysia by a PIDM insurer member.

The public can 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 Dec 31, 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.

-- BERNAMA

 

 


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