PIDM: Your community protector

Remember PIDM, remember protection!"
If you've heard this tagline on television or over the radio recently, you would have picked up these three basic facts:
▶ Perbadanan Insurans Deposit Malaysia (PIDM) is the government authority that protects your savings, takaful and insurance benefits.
▶ PIDM protects your savings up to RM250,000 per depositor per member bank, and your takaful or insurance benefits up to RM500,000, in the unlikely event a PIDM member bank or insurer member goes bankrupt.
▶ PIDM protection is free and automatic – no fees and sign-ups required.
Let's get in a little deeper on other things PIDM does. Since everyone is familiar with the responsibilities of a firefighter, let's use them as an analogy.
Generally, firefighters are called in to protect the public in emergency situations. They are one of the more well-rounded and versatile emergency task forces, and they respond to a wide variety of calls.
These days, firefighters have expanded their role and are more involved with the community. They raise awareness, conduct fire-safety checks and communicate fire prevention and other safety messages to the public.
PIDM's role is very much similar to that of firefighters, but within the context of the financial system.
Protecting financial consumer
Like firefighters, PIDM protects financial consumers by insuring their eligible bank deposits and takaful or insurance benefits should a member bank or insurer member go bankrupt. The public need not worry or panic, as PIDM will reimburse the money in your bank account and honour your eligible claims.
Public awareness
Just as firefighters who work tirelessly to educate the public on fire safety, PIDM continuously educates the public about its roles and protection systems. It reaches out to various stakeholder groups through advertisements and awareness campaigns, brochures and information materials, as well as briefings and training stints, as better awareness and understanding about PIDM can help financial consumers make more informed financial decisions and be better protected from scams.
Ever ready
Similar to the fire drills conducted by firefighting departments in Malaysia, PIDM conducts regular simulations of a member institution's failure during normal times, to test the capabilities of its people, infrastructure and systems.
To learn more about PIDM, call the toll-free line at 1-800-88-1266 or head on to www.pidm.gov.my