{"id":35900,"date":"2018-10-09T14:36:22","date_gmt":"2018-10-09T06:36:22","guid":{"rendered":"https:\/\/www.imoney.my\/articles\/?p=35900"},"modified":"2018-10-30T09:44:55","modified_gmt":"2018-10-30T01:44:55","slug":"pidm-tips-insurance","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/pidm-tips-insurance","title":{"rendered":"What Happens To My Insurance Benefits If My Insurer Goes Bust?"},"content":{"rendered":"

\"\"<\/p>\n

One of the primary reasons people buy insurance products from insurance companies is so that
\nthey are compensated for financial losses arising from unfortunate events. But, have you ever
\nwondered what happens if your insurer loses the ability to protect you?<\/p>\n

If your insurer fails and is unable to honour your takaful or insurance benefits, you can count on
\nPerbadanan Insurans Deposit Malaysia or PIDM, a government agency, to ensure that you will
\nnot lose your takaful and insurance benefits.<\/p>\n

The Takaful and Insurance Benefits Protection System (TIPS) is designed to protect takaful
\ncertificate and insurance policy owners from the loss of their eligible takaful or insurance
\nbenefits if their insurers fail.<\/p>\n

In other words, PIDM makes sure that you are protected even in bad times.<\/p>\n

<\/span>Takaful and Insurance Benefits Protection System (TIPS)<\/span><\/h2>\n

TIPS protection is automatic, no sign-ups and no fees is required. PIDM will make payment for
\neligible takaful certificate and insurance policy claims if the insurer goes bankrupt.<\/p>\n

The following are the eligible benefits protected by PIDM and their corresponding protection
\nlimits:<\/p>\n\n\n\n\n\t\n\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t
FAMILY TAKAFUL \/ LIFE INSURANCE<\/b><\/th><\/td>\n<\/tr>\n<\/thead>\n
Benefits Protected <\/b><\/td>Maximum Limit (Individual or Group Policies\/Plans)<\/b><\/td>\n<\/tr>\n
Death and related benefits<\/span><\/td>RM500,000<\/span><\/td>\n<\/tr>\n
Permanent disability<\/span><\/td>RM500,000<\/span><\/td>\n<\/tr>\n
Critical illness<\/span><\/td>RM500,000<\/span><\/td>\n<\/tr>\n
Maturity value (excluding the unit portion of investment-linked certificates or policies)<\/span><\/td>RM500,000<\/span><\/td>\n<\/tr>\n
Surrender value<\/span><\/td>RM500,000<\/span><\/td>\n<\/tr>\n
Accumulated cash dividend<\/span><\/td>RM100,000<\/span><\/td>\n<\/tr>\n
Disability income<\/span><\/td>RM10,000 per month<\/span><\/td>\n<\/tr>\n
Annuity income<\/span><\/td>RM10,000 per month<\/span><\/td>\n<\/tr>\n
Medical expenses<\/span><\/td>100% of expenses incurred<\/span><\/td>\n<\/tr>\n
Refundable prepaid contribution or premium<\/span><\/td>100% of amount prepaid<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n\t\n\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t
GENERAL TAKAFUL \/ GENERAL INSURANCE<\/b><\/th><\/td>\n<\/tr>\n<\/thead>\n
Benefits Protected <\/b><\/td>Maximum Limit (Policies\/Plans)<\/b><\/td>\n<\/tr>\n
Loss of or damage to property in relation to:<\/span>
\n
  • an immovable property located in Malaysia<\/span><\/li>
    \n \t
  • a motor vehicle registered in Malaysia or a foreign registered vehicle insured to drive in Malaysia<\/span><\/li>
    \n \t
  • a ship, aircraft or other movable property insured by a citizen or a qualified person<\/span><\/li>
    \n<\/ul><\/td>
RM500,000 per property<\/span><\/td>\n<\/tr>\n
Death and related benefits<\/span><\/td>RM500,000<\/span><\/td>\n<\/tr>\n
Permanent disability<\/span><\/td>RM500,000<\/span><\/td>\n<\/tr>\n
Critical illness <\/span><\/td>RM500,000<\/span><\/td>\n<\/tr>\n
Disability income<\/span><\/td>RM10,000 per month<\/span><\/td>\n<\/tr>\n
Medical expenses<\/span><\/td>100% of expenses incurred<\/span><\/td>\n<\/tr>\n
In relation to indemnification against claims by a third party:<\/span>
\n
  • loss of or damage to eligible third party immovable or movable property<\/span><\/li>
    \n \t
  • death <\/span><\/li>
    \n \t
  • permanent disability<\/span><\/li>
    \n \t
  • illness or bodily injury<\/span><\/li>
    \n \t
  • disability income<\/span><\/li>
    \n \t
  • medical expenses<\/span><\/li>
    \n<\/ul><\/td>
\u00a0
\n
\n\u00a0
\n
  • RM500,000 per property<\/span><\/li>
    \n \t

  • \n \t
  • RM500,000<\/span><\/li>
    \n \t
  • RM500,000<\/span><\/li>
    \n \t
  • RM500,000<\/span><\/li>
    \n \t
  • RM10,000 per month<\/span><\/li>
    \n \t
  • 100% of expenses incurred<\/span><\/li>
    \n<\/ul><\/td>\n<\/tr>\n
Refundable prepaid contribution or premium<\/span><\/td>100% of amount prepaid<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n

To be eligible for protection under TIPS, the takaful certificate or insurance policy must be
\nissued in Malaysia by a PIDM insurer member and be denominated in Ringgit Malaysia.<\/p>\n

<\/span>Who is protected by TIPS?<\/span><\/h2>\n

YOU. As long as you have a takaful certificate or insurance policy from PIDM insurer members.
\nPIDM insurer members are takaful or insurance providers licensed under the Financial Services
\nAct 2013 and the Islamic Financial Services Act 2013. However, take note that PIDM insurer
\nmembers exclude reinsurance or retakaful operators, Labuan takaful or insurance companies,
\ninternational takaful operators, and financial guarantee insurers (such as, Danajamin Nasional
\nBerhad).<\/p>\n

When in doubt, just remember to check PIDM website at www.pidm.gov.my<\/a> for a full list of
\nPIDM insurer member, or look out for PIDM membership sign that are displayed at the offices of
\nthe insurer members. Alternatively, you can ask your insurer or insurance agent whether your
\ninsurer is a member of PIDM, the benefits protected and their protection limits.<\/p>\n

<\/span>How PIDM protects your deposits and insurance and takaful benefits<\/span><\/h2>\n

\"\"<\/p>\n

PIDM was originally set up to administer the Deposit Insurance System by protecting bank
\ndeposits so that Malaysians can have prompt access to their money if the bank goes\u2026 well,
\nbankrupt.<\/p>\n

TIPS coverage was later added when PIDM\u2019s mandate was expanded to provide protection for
\nthe takaful certificate and insurance policy owners.<\/p>\n

In the event a PIDM insurer member fails and is unable to honour takaful or insurance benefits
\nprotected under TIPS, PIDM will make a payment of the eligible takaful or insurance benefits to
\nthe takaful certificate or insurance policy owners. PIDM may also arrange for transfer of takaful
\ncertificates or insurance policies from the failed insurer member to another insurer member to
\nsecure continuity of coverage for takaful certificate or insurance policy owners.<\/p>\n

Ultimately, the protection provided by PIDM ensures that you get prompt access to your
\ndeposits, takaful and insurance benefits even when the unthinkable happens.<\/p>\n

<\/div>\n