Proportion of CPF Members Covered under Home Protection Scheme (HPS) and Those Rejected for HPS due to Health Conditions
Ministry of ManpowerSpeakers
Summary
This question concerns the coverage and rejection rates of the Home Protection Scheme (HPS) for CPF members paying for HDB housing loans. Mr Chua Kheng Wee Louis inquired about the number of members covered under HPS versus those rejected over five years due to health conditions. Minister for Manpower Dr Tan See Leng stated that nearly all applicants are covered, with only 1.2% rejected due to serious pre-existing conditions to ensure scheme viability. He clarified that most members not under HPS have private insurance, while some with pre-existing conditions are covered without extra premiums. Minister for Manpower Dr Tan See Leng added that HDB provides alternative assistance measures for owners facing mortgage repayment difficulties.
Transcript
54 Mr Chua Kheng Wee Louis asked the Minister for Manpower (a) what is the current number of CPF members who own a HDB flat and are using CPF savings or cash to pay a housing loan, with a breakdown into those (i) covered under the Home Protection Scheme (HPS) and (ii) not covered under the HPS; and (b) what is the number of rejected HPS applications in the last five years due to health conditions.
Dr Tan See Leng: The Home Protection Scheme (HPS) is a mortgage reducing insurance that protects CPF members and their families from losing their HDB flats in the event of the member’s death, terminal illness or total permanent disability. HPS is required for members who use CPF savings to pay for their HDB housing loans, and optional for members who use cash.
Today, nearly all members who use CPF savings or cash to pay for their HDB housing loans and apply for HPS are covered under the scheme. This includes some with pre-existing medical conditions without premium loading. The majority of remaining members have equivalent private mortgage insurance and, hence, are not required to be covered under HPS. About 1.2% of applicants are not covered under HPS due to serious pre-existing medical conditions in the last five years.
In line with industry practice, HPS is not extended to applicants with serious pre-existing medical conditions to ensure the affordability of premiums for members and the viability of the scheme. For flat owners who face difficulties with their mortgage repayments, HDB has various assistance measures available to help them.