Effectively today (31st December 2010), the deposit insurance limit will be increased to RM250,000 per depositor per bank, announced Perbadanan Insurans Deposit Malaysia (PIDM).
Below is the summary of the said announcement:-
- The new PIDM Bill 2010 has been passed in Parliament.
- The limit of RM250,000 will protect 99% of retail depositors in full.
- Under the new Bill, foreign currency depositors will now enjoy deposit insurance protection.
- The enhanced financial consumer protection package also includes the expansion of PIDM's mandate to include the administration of the Takaful and Insurance Benefits Protection System (TIPS).
- Licensed insurance companies and registered Takaful operators will automatically become member institutions of PIDM.
- PIDM was given the powers to intervene in or resolve troubled insurer members and ensure prompt payments to claimants.