PIDM cautions public about protection scams

CEO Rafiz Azuan Abdullah pointed out on Monday the protection provided by PIDM to bank depositors, takaful certificate and insurance policy owners was automatic.

KUALA LUMPUR: Perbadanan Insurans Deposit Malaysia (PIDM) has cautioned the public to be cautious about parties requesting them to make payments for protection of their deposits in the banks.

Its  CEO  Rafiz Azuan Abdullah pointed out on Monday the protection provided by PIDM to bank depositors, takaful certificate and insurance policy owners was automatic. 

“PIDM does not require payment of any kind from members of the public. It is entirely funded by premiums or levies assessed on its member institutions and does not receive public funds to operate,” he said.

PIDM or Malaysia Deposit Insurance Corporation,  is a statutory body that provides protection against the loss of deposits and insurance or takaful benefits with its member institutions in the event of failure.

It was alerted to recent incidents involving members of the public who were contacted by parties purportedly representing various organisations requesting payment for protection provided by PIDM. 

“Please contact our call centre at 1800-88-1266 for clarification or e-mail us at [e-mail]. We also remind members of the public not to disclose their financial information, in particular their bank account or credit card details to third parties,” Rafiz added.

PIDM is a government agency established under the PIDM Act to administer the deposit insurance system (DIS) and the Takaful and insurance benefits protection system (TIPS). 

PIDM protects depositors, whether individuals or businesses, against the loss of their insured bank deposits  and owners of takaful certificates and insurance policies from the loss of their eligible takaful and insurance benefits, in the event of a failure of its member institutions.