yesterday, the di-ppf* bill was passed by parliament.
*di = deposit insurance scheme and ppf = policy owners' protection scheme.
the di scheme and the ppf scheme aims to compensate depositors and policy owners respectively in the event that their bank or insurer fails.
some of the enhanced features of the di scheme and the ppf scheme under the di-ppf bill are:
enhanced di scheme:
a. more types of entities are covered as depositors extended to all non-hbank
depositors like companies, partnerships and unincorporated entities. the
current di scheme covered only individuals and charities.
b. increase in coverage limit from the current $20,000.00 to $50,000.00.
c. insured deposits to include deposits used as security. these will include
any deposits of an insured depositor including his deposits which have
been pledged, charged or secured as collateral to a scheme member.
enhanced ppf scheme:
a. scheme extended to accident and health policies and additional classes of
general insurance policies which now includes individual and group a&h
insurance and personal motor insurance.
b. level of coverage to increase. currently, the ppf life fund covers 90% of
all life policies which will be increased to coiver 100% of protected
liabilities up to a maximum limit as prescribed in the di-ppf bill. the
ppf general fund will also provide 100% coverage but there will not be
any maximum limit for protected liabilities of general insurance policies.
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