FAQs
FAQs
Takaful & Insurance Benefits Protection System
The Takaful and Insurance Benefits Protection System (TIPS) is a system established by the Government to protect owners of takaful certificates and insurance policies from the loss of their eligible takaful or insurance benefits in the event that an insurer member fails and is unable to honour the takaful or insurance benefits. Failure in this context refers to when the insurer member is no longer viable or becomes bankrupt. TIPS is administered by PIDM.
All takaful operators licensed under the Islamic Financial Services Act (IFSA) 2013 to conduct family or general takaful business in Malaysia, as well as insurance companies (including locally incorporated subsidiaries of foreign insurance companies operating in Malaysia) licensed under the Financial Services Act (FSA) 2013 to conduct life or general insurance business in Malaysia are member institutions of PIDM. Membership in PIDM is compulsory as provided under Akta Perbadanan Insurans Deposit Malaysia.
Takaful operators and insurance companies which are member institutions of PIDM are referred to as ‘insurer members’. Look out for this membership sign at the entrance to the offices of your takaful operator or insurance company.
Click here for the full list of our insurer members.
The following institutions are not insurer members of PIDM:
- Reinsurance companies and retakaful operators
- International takaful operators licensed under the Islamic Financial Services Act (IFSA) 2013
- Financial guarantee insurers such as Danajamin Nasional Berhad
- Offshore insurance companies
- Other players in the insurance industry, such as insurance brokers and adjusters
No, you do not need to apply or register. You are automatically protected for eligible takaful and insurance benefits.
Yes, all takaful certificate and insurance policy owners are eligible for protection under TIPS if their takaful certificates or insurance policies are issued in Malaysia by an insurer member and denominated in Ringgit Malaysia.
To be eligible for protection under TIPS, the takaful certificate or insurance policy must be issued in Malaysia by an insurer member and be denominated in Ringgit Malaysia. The takaful and insurance benefits protected under under the eligible takaful certificate or insurance policy and related limits are set out in Table 1 below.
Table 1: Protected benefits and limits of protection
| Protected Benefits | Limits of Protection (Individual or Group Policies/Plans)** |
| Death and related benefits arising from death | RM500,000 |
| Disability and related benefits arising from disability | RM500,000 |
| Illness and related benefits arising from illness | RM500,000 |
| Maturity and related benefits arising from maturity* | RM500,000 |
| Surrender and related benefits arising from surrender* | RM500,000 |
| Income* | RM500,000 |
| Healthcare | 100% of amount payable |
| Pecuniary loss | RM500,000 |
| Value of that family takaful certificate or value of that life policy | RM500,000 for one or more family takaful certificates or life policies |
Refundable prepaid contribution or premium
|
|
| Loss of or damage to property and consequential loss | RM500,000 for each property |
| Loss of or damage to property of any third party and consequential loss | RM500,000 for each property |
| Death of any third party and related benefits arising from death | RM500,000 |
| Disability of any third party and related benefits arising from disability | RM500,000 |
| Illness of any third party and related benefits arising from illness | RM500,000 |
| Injury of any third party and related benefits arising from injury | RM500,000 |
| Healthcare of any third party | 100% of amount payable |
| Pecuniary loss of any third party | RM500,000 |
* Maturity, surrender and income benefits payable from the unit portion of investment-linked takaful certificates or insurance policies are not protected under TIPS.
**Claims by certificate or policy owners will be subject to the conditions and limits specified in their takaful or policy contracts.
Examples of takaful or insurance benefits not protected under TIPS include benefits under takaful certificates and insurance policies denominated in foreign currency, as well as maturity, surrender and income benefits payable from the unit portion of investment-linked certificates or policies. However, misfortune benefits (such as death benefits) payable from the unit portion of the investment-linked certificates or policies are protected under TIPS.
Yes. The benefits protected under your individual certificate or policy and a group certificate or policy will be calculated separately in arriving at the maximum limit. This is because the protection system provides separate limits for different policy owners and beneficiaries, allowing you to enjoy more protection.
No. Your takaful and insurance benefits with different insurer members are protected separately. The protected benefits under TIPS will be aggregated only if they relate to the “same insurer member, same risk event, same life insured or insured property, and same takaful certificate or policy owner”.
Each life insured is separately protected. This means even if you have purchased several takaful certificates or insurance policies for different family members from the same insurer member, you will be protected based on each individual family member who is insured. You may refer to this example:
Mr. and Mrs. Tan purchased several life insurance policies for their family from the same insurer member.
Policy Owner: Mr. Tan | Policy Owner: Mrs. Tan | ||
Life insured | Amount insured (RM) | Life insured | Amount insured (RM) |
Policy 1: Son (Adam) | 200,000 | Policy 4: Son (Adam) | 100,000 |
Policy 2: Daughter (Alice) | 150,000 | Policy 5: Son (Adam) | 50,000 |
Policy 3: Mr. Tan | 600,000 | Policy 6: Mrs. Tan | 400,000 |
Death of Adam | |||
Amount claimable under Mr Tan’s policies | RM200,000 (Policy 1) | ||
Amount claimable under Mrs Tan’s policies (RM100,000 + RM50,000) | RM150,000 (Policy 4 and 5) | ||
Total amount claimable under TIPS | RM350,000 | ||
Death of Mr Tan | |||
Amount claimable under Mr Tan’s policies | RM500,000* (Policy 3) | ||
*maximum limit under TIPS
No. Protection for your takaful certificate and insurance benefits under TIPS is not a commercial takaful or insurance policy you can purchase. It is provided by the Government through PIDM. You do not have to register or apply for protection under TIPS as it is provided automatically for eligible takaful or insurance benefits.
Your takaful or insurance benefits will continue to be protected separately until the fulfilment of all obligations by the insurer members, including the payment upon occurrence of a claims event, maturity or surrender of the takaful certificate or insurance policy.
If the insurer member can no longer operate, PIDM will take action to ensure continuity of coverage under your takaful certificates and insurance policies.
If you have a claim but the insurer member has already closed down, PIDM will make a payment of the protected benefits to you.
If you have a claim but the insurer member has already closed down, PIDM will make a payment of the protected benefits to you. Claims must be lodged with PIDM upon occurrence of the claims event, maturity or surrender of the takaful certificate or insurance policy within a specified time frame. You will be notified of this time frame by PIDM in writing and by advertisement.
Call PIDM's toll-free line at 1-800-88-1266, available Mondays to Fridays from 8.30am to 5.30pm or email [email protected].