SINGAPORE: About 556,000 CPF members use their CPF savings to service the loans for their HDB flats and 88 per cent of them are covered under the Home Protection Scheme (HPS).
In a written reply, National Development Minister Mah Bow Tan said HPS is a mortgage-reducing insurance scheme.
It 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.
Mr Mah was responding to MP Irene Ng's question on the number of people covered under the scheme.
The minister added that HPS is compulsory for all HDB flat owners who use their CPF savings to service their monthly home instalments for an HDB or bank loan.
Mr Mah said 8.5 per cent are exempted from the scheme because they have already purchased similar insurance products.
About two per cent are not insured under HPS because of medical conditions or other reasons.
In addition, Mr Mah said less than two per cent of lessees have seen their HPS lapse due to insufficient funds in the CPF Ordinary Account to pay for the HPS premium.
One reason is flat lessees losing their jobs.
Where appropriate, Mr Mah said HDB will work with the relevant social agencies to extend their employment