Meminductor is a novel type of nonlinear device following the memristor, characterized by its memory properties. Currently, research on meminductors is still in its infancy, with their physical devices yet to be formally realized. Therefore, conducting fundamental research on their nonlinear circuit properties and applications is of great significance. In this paper, a new multi-wing chaotic system is proposed based on the mathematical model of a magnetically controlled meminductor. By varying the values of its parameters, the system can generate two-wing, three-wing, and four-wing chaotic attractors. Various analytical methods are employed to study the dynamical behaviours of the proposed chaotic system. The results demonstrate that the system is highly sensitive to its initial conditions and control parameters, which makes it suitable for image encryption. Based on the new system, we propose a new algorithm for image encryption that combines the newly established four-dimensional multi-wing chaotic system with bit plane decomposition technique, firstly, the high four-bit planes containing 94% image information are disordered by S-type permutation, then the disordered bit planes perform operation of XOR with the random matrix generated by chaotic sequences, and finally, the encrypted image is obtained by merging the bit planes.