PIDM ensures consumer deposits remain protected

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KUCHING: Perbadanan Insurans Deposit Malaysia (PIDM) is committed to ensuring financial deposits by consumers at financial institutions such as banks and insurance companies are protected.

A certified trainer for PIDM, Charan Kaur, during a talk yesterday explained that PIDM is looking after the deposits of consumers deposited with banks and insurance companies.

She highlighted that in the event a bank becomes insolvent, account holders are protected up to RM250,000 per depositor per member bank.

As for policyholders of an insurance company, she pointed out that if the insurance company were to close down, the protection amount is up to RM500,000

“PIDM takes cares of policyholders in the event an insurance company becomes insolvent.

“In the event an insurance company becomes insolvent, policyholders are protected up to RM500,000

“The main role of PIDM is consumer protection,” she told an audience of financial industry players during a talk here yesterday.

PIDM provides protection for depositors and takaful certificate and insurance policy owners against loss of their deposits and takaful and insurance benefits in the event of a member institution failure.

Kaur noted PIDM also instill confidence to the public through its mandate. Additionally, products that have high returns are not protected by PIDM.

“PIDM does not provide protection for gold-related investment products, unit trusts, shares, money market deposits, negotiable instruments of deposits, repurchase agreements and deposits not payable in Malaysia.

“The protection eligibility are for savings account, current account, fixed deposits and foreign currency deposits.

“As for insurance, only the protection part (in the insurance policy is covered by PIDM), the investment part (investment-linked) and liability insurance are not covered,” she disclosed.

Kaur explained that for consumers to enjoy the “extra amount” of protection for money deposited with a bank, consumers can deposit their money into different types of accounts such as conventional deposits, Islamic deposits, joint accounts and trust accouts as well as individual and businesses.

Using examples, she explained that a person who deposited money into for instance a convention account would have a total deposits protected by PIDM up to RM250,000.

Kaur further expounded that if a person, who acts as trustee for his two children and deposits for example RM230,000 and RM200,000 respectively into two separate saving accounts, the total protection is RM430,000.

She highlighted that each beneficiaries, in that case the children enjoyed separate protection provided the trustee disclose each of the beneficiaries to the banks.

In the meantime, she advised consumers to manage their money well.

Meanwhile, Bank Negara Malaysia (BNM) Regional Office in Kuching’s executive Mohd Lofti Ismail gave a brief overview on the roles and functions of the central bank’s office in Sarawak.

He said the central bank’s office in Kuching serves as intermediaries to faciliate any issues that arose between financial institutions and consumers in Sarawak.

He added consumers can also contact BNMLINK, a platform for the public to seek more information, enquiries or redress in the areas of conventional and Islamic banking and takaful as well as advisory for small and medium enterprises from the central bank.

He also said BNM Regional Office in Kuching has conducted financial inclusion programme to underserved areas in Sarawak, provide financial education awareness programme and organised programme to promote the use of electronic payment to the public.

Meanwhile, the talk, organised by Insurance Society of Sarawak was attended by more than 50 people.