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Status: You are viewing the version of the handbook as on 2009-03-31.

COMP 1.3 Claimants

COMP 1.3.1G

The FSCS also provides information to claimants and potential claimants about the way the FSCS works and the procedures that need to be followed when making a claim. The FSCS can be contacted at 7th Floor, Lloyds Chambers, 1 Portsoken Street, London E1 8BN, or by telephone or fax (Tel: 020 7892 7300 or Fax: 020 7892 7301), or by e-mail (enquiries@fscs.org.uk).

COMP 1.3.2G

Information about the operation of the FSCS and how to claim is also available from the FSCS website (www.fscs.org.uk).

COMP 1.3.3G

Areas of particular interest to claimants (see COMP 1.1.3G).

This Table belongs to COMP 1.1.3 G4.

4

Q1

What do I need to do in order to receive compensation?

A1

In order to receive compensation:

(1)

you must be an eligible claimant;

COMP 4.2

(2)

you must have a protected claim;

COMP 5.213

(3)

you must be claiming against a relevant person;

COMP 6.2.1 R

(4)

the relevant person must be in default.

COMP 6.3

In addition, if the FSCS requires you to do so, you must assign your legal rights in the claim to the FSCS.

COMP 7.2

And you must bring your claim to the FSCS within a set time (normally within six years of the date on which your claim against the relevant person occurred).

COMP 8.2.3 R - COMP 8.2.5 R

It is possible, in certain circumstances, for someone else to make a claim on your behalf.

COMP 3.2.2 R2

Q2

How much compensation will I be offered?

A21

This depends on whether your protected claim is:

(1)

a claim for a protected deposit; or

COMP 5.3

(2)

a claim under a protected contract of insurance; or

COMP 5.4

(3)

a claim in connection with protected investment business; or1

COMP 5.5

(4)13

a claim in connection with protected home finance mediation;4 or13

4

COMP 5.61

(5)3

a claim in connection with protected non-investment insurance mediation.3

COMP 5.73

Different limits apply to different types of claim.

COMP 10.2.3 R2

Q3

How will the FSCS calculate the compensation that is offered to me?

A3

Again, this will depend on whether your protected claim is:

4

(1)

a claim for a protected deposit;

COMP 12.2.1 R, COMP 12.3.1 R and COMP 12.4.1 R

(2)

a claim under a protected contract of insurance;3

COMP 12.2.1 R, COMP 12.3.2 R and COMP 12.4.9 R

(3)

a claim in connection with protected investment business; or3

COMP 12.2.1 R, COMP 12.3.5 R and COMP 12.4.2 R

(4)13

a claim in connection with protected home finance mediation.413

4

COMP 12.4.17 R1

(5)3

a claim in connection with protected non-investment insurance mediation.3

COMP 12.4.20 R3

Certain types of protected investment business claim require the FSCS to use a particular method of calculation.

COMP 12.4.5 R

Q4

What happens if an insurance undertaking is insolvent?

A4

If you have a long-term insurance contract which is not a reinsurance contract with an insolvent insurance undertaking, the FSCS will first try to secure continuity of insurance for you.

COMP 3.3, COMP 11.2.3 R and COMP 12.4.11 R

If the FSCS achieves this, you will not necessarily receive any cash, but you will continue to be insured (though possibly with lower benefits than before).

COMP 3.3 and COMP 11.2.3 R.

You will receive cash compensation only if the FSCS cannot secure continuity of insurance cover or the cost of doing so would be unreasonable.

COMP 3.3.1 R and COMP 11.2.1 R

If you have a relevant general insurance contract which is not a reinsurance contract with an insolvent insurance undertaking, the FSCS will pay you cash compensation if it is unable to secure continuity of insurance cover or the cost of doing so would be unreasonable.

COMP 3.2.1 R and COMP 11.2.3 R

If the insurance undertaking is in "financial difficulties", the FSCS may try to arrange for another insurance undertaking to take over the business, or provide the insurance undertaking with financial assistance to carry on business. If this occurs, you will not receive cash compensation, but your policy will continue (though possibly with lower benefits than before).

COMP 3.3.3 R and COMP 11.2.3 R2