PART IV
HOME PROTECTION INSURANCE SCHEME
28.
—(1) In this Part —
“approved mortgagee” means a mortgagee approved by the Minister by notification in the Gazette;
“Home Protection Fund” means the Home Protection Fund established and maintained by the Board under section 33(1);
“Housing Authority” means any of the following:
(a)
the Housing and Development Board;
(b)
the Jurong Town Corporation constituted under section 3 of the Jurong Town Corporation Act (Cap. 150);
(c)
the Minister for Finance incorporated under the Minister for Finance (Incorporation) Act (Cap. 183);
(d)
the Housing and Urban Development Company Private Limited, a company incorporated under the Companies Act (Cap. 50);
“incapacitated” means to be physically or mentally incapacitated from ever continuing in any employment and “incapacity” shall be construed accordingly;
“member of the Scheme” means a person who is insured under the Scheme;
“premium” means the premium payable by a member of the Scheme;
“Scheme” means the Home Protection Insurance Scheme established and maintained by the Board under section 29(1).
[32/84; 30/87]
(2) Except where expressly provided in this Part, the provisions of this Part shall, with such exceptions, modifications and adaptations as the Minister may by order published in the Gazette prescribe, apply (so far as relevant) in relation to any housing accommodation sold or to be sold by an approved developer under Part IVB of the Housing and Development Act (Cap. 129).
(3) An order made under subsection (2) shall be presented to Parliament as soon as possible after publication in the Gazette.
29.
—(1) The Board is hereby authorised to establish and maintain a Home Protection Insurance Scheme for the purpose of providing that on the death or incapacity of a member of the Scheme at any time during the period in which the member is insured under the Scheme, his liability to repay his housing loan to a Housing Authority or an approved mortgagee secured by a mortgage of the immovable property to that Authority or approved mortgagee, as the case may be, shall be discharged by the Board in accordance with the Scheme.
[30/87]
(2) Subject to section 31, the Scheme shall apply to every member who has withdrawn moneys standing to his credit in the Fund to repay any instalment of housing loan taken by the member from a Housing Authority or an approved mortgagee for the purchase of any immovable property from a Housing Authority.
[30/87]
(3) The Board may permit any person who has purchased from a Housing Authority an immovable property jointly with a member of the Fund to join the Scheme subject to such term, condition and restriction as the Board may impose.
[30/87]
(4) The Board may, on the application being made to it by a member, exempt the member from the Scheme.
[39/2000]
(4A) Any exemption by the Board under subsection (4) shall be subject to such terms and conditions as may be prescribed by the Minister.
[39/2000]
(5) The Scheme shall not apply to —
(a)
any member if he is 65 years of age or above or such other age as the Minister may prescribe at the time he is required to join the Scheme; and
(b)
any member or class of members whom the Minister may, by notification in the Gazette, specify.
[30/87; 10/94; 39/2000]
(5A) Notwithstanding subsection (5), the Scheme shall not apply to any member who is 60 years of age or above but below 65 years of age on 1st March 2001 unless that member opts, in such manner as the Board may determine, to join the Scheme.
[39/2000]
(6) Any person who became a member of the Scheme prior to 1st March 1988 shall continue to be a member of the Scheme subject to the same term, condition and restriction which were in force before that date.
[30/87]
(7) The Board may cancel or terminate a member’s cover under the Scheme in such circumstances as may be prescribed by regulations made under this Part.
30.
—(1) No person shall be insured under the Scheme for more than one immovable property at the same time.
[30/98]
(2) Where a member who is insured under the Scheme in respect of any immovable property purchases another immovable property from a Housing Authority, the member shall, notwithstanding anything in this Act or in regulations made under this Part, cease to be covered under the Scheme in respect of the first-mentioned immovable property immediately upon the commencement of cover under the Scheme in respect of the second-mentioned immovable property.
[30/98; 39/2000]
(3) Where a member’s cover under the Scheme in respect of any immovable property ceases by virtue of subsection (2), the Board shall refund to the member or pay to such other person as may be prescribed by regulations made under this Part, subject to such terms and conditions as the Board may impose and in such manner as may be prescribed by those regulations, an amount representing the surrender value of that cover or the unexpired portion of that cover, if any, calculated in accordance with those regulations as if the member had redeemed the housing loan on that property on the date of the cessation of that cover.
(4) Where before 1st August 1998 a member is insured under the Scheme in respect of 2 immovable properties at the same time —
(a)
the member’s cover under the Scheme in respect of the immovable property purchased by the member earlier (referred to in this subsection as the earlier property) shall cease on that date; and
(b)
the Board shall refund to the member or pay to such other person as may be prescribed by regulations made under this Part, subject to such terms and conditions as the Board may impose and in such manner as may be prescribed by those regulations, an amount representing the surrender value of that cover, if any, calculated in accordance with those regulations as if the member had redeemed the housing loan on the earlier property on that date.
31.
—(1) Subject to subsection (2), no person shall be entitled to join the Scheme unless the Board is satisfied that he is in good health at the time he joins the Scheme.
[30/87]
(2) The Board may, on the application of a person who is not entitled to join the Scheme solely by reason that the Board is not satisfied that the person is in good health, and subject to such terms and conditions as the Board may impose either generally or in a particular case, permit the person to join the Scheme.
(3) A member of the Scheme or person who wishes to join the Scheme shall —
(a)
if required by the Board, undergo such medical examination as the Board thinks fit; and
(b)
disclose to the Board such facts or information concerning his health as the Board may require.
32.
—(1) Every member of the Scheme shall pay a premium of an amount prescribed by regulations made under this Part.
[30/87]
(2) Notwithstanding anything in this Act, the Board shall be entitled to deduct the amount of the premium payable by a member of the Scheme from the contributions standing to the credit of that member in the Fund and where any such deduction has been made by the Board, the Board shall as soon as practicable give to the member concerned notice in writing to that effect.
[30/87]
(3) The deduction referred to in subsection (2) shall have priority to the deductions which the Board is authorised to make under all other provisions of this Act except section 27B.
[39/2000]
(4) Where the amount of the premium which a member is liable to pay under the Scheme exceeds the amount standing to his credit in the Fund, the deficiency may be paid in such manner and within such time as the Board may determine.
[39/2000]
(5) Where a joint-owner of an immovable property is insured under the Scheme, the Board may permit a joint-owner who is a spouse of the first-mentioned joint-owner to use his contributions in the Fund to pay for the whole or part of the premium which the first-mentioned joint-owner is liable to pay under the Scheme.
[39/2000]
33.
—(1) The Board shall establish and maintain a fund to be known as the Home Protection Fund into which shall be paid all premiums collected under this Part and out of which shall be met all payments to be paid by the Board under the Scheme (including any costs and expenses incurred by the Board in establishing and maintaining the Scheme).
(2) The Home Protection Fund shall be controlled and administered by the Board.
(3) Every amount paid by the Board out of the Home Protection Fund before the date of commencement of section 21 of the Central Provident Fund (Amendment) Act 2011 to defray the costs and expenses incurred by the Board in establishing and maintaining the Scheme shall be deemed to be and always to have been validly paid, and no legal proceedings shall lie or be instituted or maintained in any court of law on account of or in respect of any such payment.
Premium when due
34. [Repealed by Act 39/2000]
Period of cover
35. [Repealed by Act 39/2000]
Amount payable by Board to Housing Authority or approved mortgagee on death or incapacity of member of Scheme
36.
—(1) Where a member of the Scheme dies at any time during the period he is insured under the Scheme, the Board shall, upon proof of death, forthwith pay to the Housing Authority or the approved mortgagee such an amount as is prescribed under regulations made under this Part.
[30/87]
(2) Subject to subsections (3), (4) and (5), where there is a claim made to the Board by a member of the Scheme on the ground of incapacity at any time during the period he is insured under the Scheme, the Board shall upon proof of incapacity pay to the Housing Authority or the approved mortgagee, as the case may be, the monthly or other periodic loan instalments which the member of the Scheme is liable to pay to the Housing Authority or the approved mortgagee under the housing loan for a period not exceeding 2 years.
[39/2000]
(3) For the avoidance of doubt, where the housing loan is taken from a Housing Authority or an approved mortgagee by 2 or more members of the Scheme in respect of property purchased jointly by the members, the monthly or other periodic loan instalments payable by the Board under subsection (2) on account of the incapacity of a member shall be in proportion to that member’s liability for the repayment of the housing loan as declared by that member to, and accepted by, the Board.
[39/2000]
(4) The Board shall cease payment to the Housing Authority or the approved mortgagee under subsection (2) if the member of the Scheme is no longer incapacitated.
[39/2000]
(5) Where the Board ceases payment to the Housing Authority or the approved mortgagee under subsection (4), the member of the Scheme shall remain insured under the Scheme for such an amount as is prescribed under regulations made under this Part less any amount that the Board has paid under subsection (2).
[39/2000]
(6) Notwithstanding subsection (2), if the incapacity of the member of the Scheme is in the opinion of the Board likely to continue for more than 2 years, the Board shall pay the Housing Authority or the approved mortgagee such an amount as is determined in accordance with the formula —
(A + B) — C, | |
where A | is the amount prescribed under regulations made under this Part to be payable at the time of incapacity of the member; |
B | is the amount of interest accrued on A as determined by the Board from the time the first monthly or periodic loan instalment is made under subsection (2) to the time the amount under this subsection is paid by the Board; |
C | is the total amount paid by the Board to the Housing Authority or the approved mortgagee under subsection (2). |
[39/2000]
(7) Where a claim under the Scheme is made in respect of the incapacity of a member of the Scheme, the Board may backdate any payment to be made by the Board to the Housing Authority or the approved mortgagee under this section to the date on which the incapacity occurred.
[39/2000]
(8) The amount payable by the Board to the Housing Authority or the approved mortgagee under this section on the death or incapacity of a member of the Scheme shall in no case exceed the amount which is necessary to repay the outstanding amount of any loan and interest accruing thereon in order to secure the discharge of the mortgage of the immovable property at the time of the death or incapacity.
[30/87]
(9) The Board shall not be required to make any payment in respect of any member of the Scheme —
(a)
if the death or incapacity of the member —
(i)
in the case of a member who was insured under the Scheme before 1st March 2001, occurs within one year from the date he is insured under the Scheme and the death is the result of suicide or the incapacity is the result of deliberate self-injury; or
(ii)
in the case of a member who was insured under the Scheme on or after 1st March 2001, is the result of suicide or deliberate self-injury committed within one year from the date that he is insured under the Scheme;
(b)
if the member suffered capital punishment for any criminal act committed within one year from the date that he is insured under the Scheme;
(c)
if the death or incapacity of the member, directly or indirectly, arose out of or is consequent upon or contributed by his own intentional criminal act committed within one year from the date that he is insured under the Scheme; or
(d)
if the death or incapacity of that member arises from war or any warlike operations or participation in any riot.
[23/89; 39/2000]
(10) The Board shall not be required to make any payment in respect of any member of the Scheme if the member —
(a)
makes or furnishes to the Board any statement or fact that is false or misleading in a material particular; or
(b)
fails to disclose to the Board any material fact or circumstance known to him at the time he is required to be insured under the Scheme which might influence the Board as to whether he should be insured under the Scheme.
[30/87]
37.
—(1) Where a member of the Scheme is required to pay a premium to the Home Protection Fund under section 32, the Housing Authority or the approved mortgagee, as the case may be, shall send a written notice thereof to the Board within 14 days from the date the premium is payable by the member of the Scheme.
[30/87]
(2) Every notice under subsection (1) shall be in such form as the Board may require.
38. The Insurance Act (Cap. 142) shall not apply to anything done by the Board under this Part.
39. The Minister may make such regulations as are necessary or expedient for the purpose of carrying out the provisions of this Part and, in particular, such regulations may —
(a)
provide for the different classes of members of the Scheme and the rates of premium payable by such members;
(b)
provide for the manner and time for payment of premiums by the different classes of members of the Scheme;
(c)
provide for the period and commencement of cover under the Scheme;
(ca)
provide, in respect of each class of members of the Scheme, for the amount of money for which a member of the Scheme may be insured under the Scheme;
(d)
provide, in respect of each class of members of the Scheme, for the amount of money payable by the Board to the Housing Authority or the approved mortgagee in the event of the death or incapacity of a member of the Scheme;
(e)
provide, in respect of each class of members of the Scheme, for the amount of money payable by the Board under the Scheme where the prescribed premium has not been fully paid;
(ea)
prescribe the circumstances under which the Board may cancel or terminate a member’s cover under the Scheme;
(f)
provide for the refund of any premium, the manner in which the premium is to be refunded and the circumstances under which the refund shall be made and at such rates as may be prescribed by the Minister;
(g)
prescribe the evidence to be produced and the person, officer or authority to whom that evidence is to be produced for the purposes of this Part;
(h)
provide for the manner in which money in the Home Protection Fund may be invested;
(i)
provide for the premium payable by members of the Scheme in cases where the immovable property is purchased in joint names;
(j)
provide for such information, evidence and documents that the Board may require a member of the Scheme to furnish for the purposes of this Part; and
(k)
prescribe anything which under this Part may be prescribed by the Minister.
[30/87; 39/2000]