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COMP 10.2 Limits on compensation payable

COMP 10.2.1R

The limits on the maximum compensation sums payable by the FSCS for protected claims are set out in COMP 10.2.3 R.

COMP 10.2.2G

The limits apply to the aggregate amount of claims in respect of each category of protected claim that an eligible claimant has against the relevant person (or, where applicable, a successor)18. Consequently, a claimant who has, for example, a claim against a relevant person (or, where applicable, a successor)18 in connection with protected investment business of £40,000126, and a further such claim of £20,0006, will only receive the £50,000 limit.12

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COMP 10.2.3R

Table Limits

This table belongs to COMP 10.2.1R

Type of claim

Level of cover

Maximum payment

18

14

18

66

18

6817171717

18

18

1212

18

18

1212

18

18

18

1212

18

2

Protected investment business

100% of claim12

12

£50,00012

12

Protected home finance mediation51

5

100% of claim12

12

£50,00012

Protected non-investment insurance mediation3

(1) where the claim is in respect of a liability subject to compulsory insurance: 100% of claim3

Unlimited3

(2) where the claim is in respect of:18

(a) a relevant omission; and18

(b) a professional indemnity insurance contract, or would be in respect of a professional indemnity insurance contract if the insurance contract had been effected:18

100% of claim18

Unlimited18

(3) where the claim is:18

(a) in respect of a relevant omission;18

(b) in respect of a relevant general insurance contract or would be in respect of a relevant general insurance contract if the insurance contract had been effected; and18

(c) arises from the death or incapacity of the policyholder owing to injury, sickness or infirmity:18

100% of claim18

Unlimited18

(4) where the claim is in respect of:

(a) a relevant omission; and

(b) a pure protection contract, or would be in respect of a pure protection contract if the insurance contract had been effected:

100% of claim18

Unlimited18

(5) 18In all other cases: 90% of claim123

12

Unlimited3

COMP 10.2.4G

COMP 12 sets out the rules the FSCS will follow when calculating the amount of compensation payable.

COMP 10.2.5G

18COMP 12.4.4 R includes18 further limits relating to18 ICD claims against certain incoming EEA firms. These reflect the18 Investor Compensation Directive18 under which compensation may be payable by the incoming EEA firm's Home State compensation scheme.

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Claims in cases where there is a successor

COMP 10.2.5AR

18No claimant shall be eligible to make a claim under the compensation scheme in respect of both the relevant person and a successor in relation to the same loss.

Continuity of insurance cover

COMP 10.2.6R

[deleted]2

COMP 10.2.7R

[deleted]2

Claims arising under COMP 3.2.4 R4

COMP 10.2.9R

4If a firm has a claim under COMP 3.2.4 R, the FSCS must treat the share of the shortfall of each customer as if it were a protected claim for the purposes of calculating the limits of compensation payable, within COMP 10.2, in relation to that customer.

COMP 10.2.10R

[deleted]

COMP 10.2.11R

[deleted]

14Claims in respect of protected dormant accounts

COMP 10.2.12R

[deleted]

COMP 10.2.13G

[deleted]