Clare Daly (Dublin North, United Left)
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544. To ask the Minister for Environment, Community and Local Government the proportion of the €60 paid by affordable home owners in the mortgage protection insurance scheme that is apportioned to death and disability cover; and the steps he will take to ensure that affordable home owners are not tied into a similar over-priced scheme, when the tender is renegotiated in 2016. [39423/15]

Alan Kelly (Tipperary North, Labour)
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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 MPI premium paid by borrowers is not broken down between life assurance and disability insurance cover.

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 which includes representation from my Department 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.