Dependants of HDB Flat Owners Who Have Benefited from Home Protection Scheme

Mr Gan Thiam Poh asked the Minister for Manpower (a) in the past three years, how many dependants of HDB flat owners have benefited from the Home Protection Scheme (HPS) upon the death of the owner; (b) what has been the number of unsuccessful claims and what are the reasons; and (c) how many dependants have made appeals for HPS claims.

From 2015 to 2017, the Home Protection Scheme (HPS) has helped to pay the remaining mortgage for about 1,800 Housing and Development Board (HDB) lessees who died. Another 70 unsuccessful death claims were made. Out of these, 22 dependants submitted an appeal, of which one was approved.

The treatment of claims for HPS is in line with industry practice. Unsuccessful death claims remain a small minority and fall into three categories. First, serious pre-existing illness was undeclared when the HPS was purchased, and such declaration would have resulted in the HPS not having been extended in the first place. Second, the HPS cover had lapsed and was no longer in force when the policy owner died. This arises mainly because premiums remained unpaid despite repeated reminders from the Central Provident Fund (CPF) Board. Third, the policy holder committed suicide within the first year of HPS cover.

In cases where the HPS claim are not successful, dependants can explore other options with HDB. They can seek HDB's assistance to reduce or defer mortgage payments until the family regains financial stability. HDB can also assist the family to right-size to a more affordable flat if they choose to do so.