Clare Daly (Dublin North, United Left)
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1028. To ask the Minister for Environment, Community and Local Government if he is aware that owners of units under the affordable home scheme are compelled to pay €60 per month for mortgage protection insurance as part of the scheme, a sum that is three times the rate charged by market providers (details supplied); and if he will make a statement on the matter. [37166/15]

Clare Daly (Dublin North, United Left)
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1029. To ask the Minister for Environment, Community and Local Government the proportion of the mortgage protection insurance that must be purchased by homeowners under the affordable homes scheme that goes towards death and disability benefits. [37167/15]

Clare Daly (Dublin North, United Left)
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1030. To ask the Minister for Environment, Community and Local Government the steps he will take, as part of the re-tendering process in 2016 for the provision of mortgage protection insurance for homeowners under the affordable homes scheme, to ensure they are no longer charged three times the market rate for their policies. [37168/15]

Alan Kelly (Tipperary North, Labour)
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I propose to take Questions Nos. 1028 to 1030, inclusive, together.

The local authority mortgage protection insurance (MPI) scheme is overseen by the Mortgage Protection Committee which is a sub-committee of the County and City Management Association (CCMA) and is representative of the CCMA, local authorities, the Housing Finance Agency and my Department. One of the conditions of the scheme, which is a group policy, is that it is obligatory for all local authority borrowers who meet the eligibility criteria to join the scheme. Altering this condition would have a negative impact on the scheme and increase the cost for all existing borrowers.

The provision requiring that mortgage protection insurance is held by mortgage holders is contained in the Consumer Credit Act 1995. This legislation is the responsibility of the Minister for Jobs, Enterprise and Innovation.

In terms of comparison to other schemes of mortgage protection, it is important to note that it covers disability as well as death and that the disability cover is for the full period of the disability and not just 12 months as is the case in the majority of MPI policies available.

The Mortgage Protection Committee which oversees the scheme endeavours to achieve a balance between the most economic rate to be charged for the scheme and the benefits provided. In negotiating a renewal of the scheme, which came into effect from 1 January 2012, the Committee were able to harness the downward pressure on pricing in the economy and secure an average 19% reduction on the rate which applied to the previous scheme. As part of the upcoming re-tendering process, the Committee will seek to secure with effect from 1 January 2017, the most appropriate Mortgage Protection Insurance cover at the best value for money for local authority borrowers.