“Remember PIDM, remember protection!” This tagline by Perbadanan Insurans Deposit Malaysia (PIDM) which is aired on television or radio is an effort to educate people on three things:
l Perbadanan Insurans Deposit Malaysia (PIDM) as the government authority that protects savings, takaful and insurance benefits.
l PIDM protects savings up to RM250,000 per depositor per member bank and takaful or insurance benefits up to RM500,000 in the unlikely event a PIDM member bank or insurer member goes bankrupt.
l PIDM protection is free and automatic so no fee and sign-ups are required.
To understand PIDM’s role, it can be likened to the responsibilities of a firefighter.
Firemen are called to protect the public in emergencies.
They are one of the more well-rounded and versatile emergency task forces in the world and respond to a wide variety of calls.
Today, firefighters have expanded their role to be more involved with the community.
They also raise awareness, conduct fire safety checks and communicate fire prevention as well as other safety messages to the public.
PIDM’s role is akin to that of firefighters’ but within the context of the financial system.
Like firefighters, PIDM is a protector – it protects financial consumers by insuring their eligible bank deposits and takaful or insurance benefits if a member bank or insurer member goes bankrupt.
The public do not need to worry should this happen as PIDM will reimburse their money kept in the bank, and honour eligible claims.
PIDM continuously educates the public about its roles and the protection systems it administers.
It reaches out to various stakeholder groups through advertisement and awareness campaigns, brochures and information materials, as well as briefings and training.
This gives better awareness and understanding of how PIDM can help financial consumers make better-informed financial decisions and protect themselves from scams.
Similar to fire drills conducted by the Fire and Rescue Department, PIDM conducts regular simulations of a member institution failure during normal times to test the capabilities of its people, infrastructure and systems.
To learn more about PIDM and how its protection systems work, call 1-800-88-1266 or visit www.pidm.gov.my