Section 16

Subsection 40(1) of the principal Act is amended by substituting for paragraph (c) the following paragraph:

“(c) in the case of a former insurer member, protected benefits on the day the cancellation or termination of membership takes effect, less any payments made on

Malaysia Deposit Insurance Corporation (Amendment)

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account of the benefits, shall continue to be protected after the effective date of cancellation or termination until fulfilment of all the obligations of the former insurer member in respect of the takaful or insurance benefits;”.