HOME PROTECTION SCHEME (HPS)

HOME PROTECTION SCHEME (HPS)

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Ms Irene Ng Phek Hoong asked the Minister for National Development to date, how many HDB flat owners are not covered by the Home Protection Scheme (HPS) and, of that, what percentage is due to their inability to pay the outstanding premiums which caused the HPS to lapse.

Mr Mah Bow Tan: The Home Protection Scheme (HPS) is a mortgage-reducing insurance scheme which protects HDB households against the loss of their flats should the breadwinner pass away or become incapacitated before the home loan is fully paid up.

HPS is compulsory for all HDB flat owners who are using their CPF savings to service their monthly home instalments for an HDB or bank loan. About 556,000 CPF members currently use their CPF savings to service the loans for their HDB flats. Of these, 88% are covered under HPS. 8.5% are exempted from HPS as they have already purchased similar insurance products. About 2% are not insured under HPS because of medical conditions or other reasons.

A very small percentage of the lessees (1.7%) have seen their HPS lapse due to insufficient funds in the CPF Ordinary Account to pay for the HPS premium. This may be due to a variety of reasons, including loss of employment by the flat lessees. Where appropriate, HDB will work with the relevant social agencies to extend employment assistance and other financial assistance measures to families in financial difficulty.

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