CPF members to get premium rebates for home protection plan

Singaporeans and permanent residents covered under the Home Protection Scheme will receive rebates on the premiums they paid.
Singaporeans and permanent residents covered under the Home Protection Scheme will receive rebates on the premiums they paid.PHOTO: ST FILE

Some 949,000 Singaporeans and permanent residents covered under the Home Protection Scheme (HPS) will receive rebates on the premiums they paid, the CPF Board announced yesterday.

Around 470,000 of them will receive a rebate of at least $400 in their Central Provident Fund (CPF) accounts in November.

The amounts that the rest will receive are still to be worked out. However, an estimated $650 million will be given out in total. The board said in a statement: "The rebates arise from better-than-expected investment returns and lower-than-projected claims experience."

In 2006, the last time such a rebate exercise was held, $480 million was distributed to around 950,000 people.

This year will be the fifth time the board is distributing HPS premium rebates. The money will be credited into CPF members' Ordinary Accounts if they have paid premiums under the scheme since July 1, 2006. The amount each person receives will be based on his share of the net premiums paid by all those eligible. This means someone who paid a higher net premium is likely to get a higher rebate.

The HPS protects CPF members and their families against losing their homes if the insured person dies or is permanently incapacitated before the housing loan for their HDB flat is paid up.

Those using their CPF savings to pay for the monthly loan instalments on their flats must be insured under the scheme. Those who service their loans through other means can apply for the scheme.

Manpower Minister Lim Swee Say said on Facebook yesterday that the HPS is helpful and affordable for families, as the annual premium has not risen since the scheme was introduced in 1981.

"Our homes hold a special place in our hearts," he said. "For family members to lose their home, after losing their loved one, would be too heartbreaking to bear."

A version of this article appeared in the print edition of The Straits Times on August 06, 2015, with the headline 'CPF members to get premium rebates for home protection plan'. Print Edition | Subscribe