COMP 10.1 Application and Purpose

Application

COMP 10.1.1 R 01/12/2001

This chapter applies to the FSCS.

COMP 10.1.2 G 01/12/2001

It is also relevant to claimants.

Purpose

COMP 10.1.3 G 01/12/2001

In most cases it is appropriate for there to be a limit on the amount of compensation payable by the FSCS and that there should be some part of the claim which is not compensatable and for which the claimant must bear the loss. The purpose of this chapter is to set these limits out.

COMP 10.2 Limits on compensation payable

COMP 10.2.1 R 01/12/2001

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

COMP 10.2.2 G 01/12/2003

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. Consequently, a claimant who has, for example, a claim against a relevant person for a deposit of £2,000, and for a further deposit of £1,500, will not receive 100% compensation on both deposits; instead he will receive £3,350 (100% of the first £2,000 and 90% of the next £1,500). Similarly, if a claimant receives more than one payment in respect of a claim or claims on one or more protected contract of insurance, the claimant will only receive 100% of the first £2,000 of the total paid, and not 100% of the first £2,000 of each payment.2

COMP 10.2.3 R 31/10/2004

Table Limits

This table belongs to COMP 10.2.1R

Type of claim	Level of cover	Maximum payment
Protected deposit	100% x first £2,000 90% x next £33,000	£31,700
Protected contract of insurance when the contract is a relevant general insurance contract	(1) Where the claim is in respect of a liability subject to compulsory insurance : 100% of claim	Unlimited
	(2) Where the claim arises under the Third Party (Rights against Insurers) Act 1930, is in respect of a liability within COMP 5.4.5R(1)(b), and is in connection with an Article 9 default: 90% of the . claim	Unlimited
	(3) In all other cases: 100% x first £2,000 90% of remainder of the claim.	Unlimited
Protected contract of insurance when the contract is a long-term insurance contract	100% x first £2,000 At least 90% of the remaining value of the policy as determined in accordance with COMP 12.	Unlimited 2
Protected investment business	100% x first £30,000 90% x next £20,000	£48,000
Protected mortgage business 1	100% x first £30,000 1 90% x next £20,000 1	£48,000 1
Protected non-investment insurance mediation 3	(1) where the claim is in respect of a liability subject to compulsory insurance : 100% of claim 3	Unlimited 3
	(2) In all other cases: 100% x first £2000 90% of the remainder of the claim 3	Unlimited 3

COMP 10.2.4 G 01/12/2001

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

COMP 10.2.5 G 01/12/2001

COMP 12.4.1 R and COMP 12.4.4 R include further limits relating to Deposit Guarantee Directive claims DGD claims and ICD claims against certain incoming EEA firms. These reflect the Deposit Guarantee Directive DGD and Investor Compensation Directive/s,ICD, under which compensation may be payable by the incoming EEA firm's Home State compensation scheme.

Continuity of insurance cover

COMP 10.2.6 R 01/12/2003

[deleted]2

COMP 10.2.7 R 01/12/2003

[deleted]2

Claims arising under COMP 3.2.4 R4

COMP 10.2.9 R 14/01/2005

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.

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