COMP 10
Limits on the amount of compensation payable
COMP 10.1
Application and Purpose
- 01/12/2004
Application
COMP 10.1.1
See Notes
This chapter applies to the FSCS.
- 01/04/2013
COMP 10.1.2
See Notes
It is also relevant to claimants.
- 01/04/2013
Purpose
COMP 10.1.3
See Notes
- 01/04/2013
COMP 10.1.4
See Notes
- 01/04/2013
COMP 10.2
Limits on compensation payable
- 01/12/2004
COMP 10.2.1
See Notes
The limits on the maximum compensation sums payable by the FSCS for protected claims are set out in COMP 10.2.3 R.
- 01/04/2013
COMP 10.2.2
See Notes
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 in connection with protected investment business of £40,000
, and a further such claim of £20,000, will only receive the £50,000 limit.
- 01/04/2013
COMP 10.2.3
See Notes
Table Limits
This table belongs to COMP 10.2.1R
| Type of claim | Level of cover | Maximum payment |
| Protected deposit or protected dormant account | 100% of claim | £85,000 [Note: articles 7(1a) and 7(1b) of the Deposit Guarantee Directive] |
| 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) In all other cases: 90% of claim | Unlimited | |
| Protected contract of insurance when the contract is a long-term insurance contract | At least 90% of claim as determined in accordance with COMP 12 | Unlimited |
| Protected investment business | 100% of claim | £50,000 |
| Protected home finance mediation | 100% of claim | £50,000 |
| Protected non-investment insurance mediation | (1) where the claim is in respect of a liability subject to compulsory insurance : 100% of claim | Unlimited |
| (2) In all other cases: 90% of claim | Unlimited |
- 01/04/2013
COMP 10.2.4
See Notes
- 01/04/2013
COMP 10.2.5
See Notes
COMP 12.4.1 R and COMP 12.4.4 R include further limits relating to
Deposit Guarantee Directive claims and ICD claims against certain incoming EEA firms. These reflect the
Deposit Guarantee Directive
and
Investor Compensation Directive/s, under which compensation may be payable by the incoming EEA firm's Home State compensation scheme.
- 01/04/2013
Claims against more than one member in respect of a single protected contract of insurance to be treated as a single claim
COMP 10.2.8
See Notes
In applying the financial limits in COMP 10.2, and in calculating theamount of a claim in respect of a protected contract of insurancearising from the default of one or more members, a policyholder is to be treated as having a single claim for the aggregate of all such amounts as may be payable on the claim in respect of the protected contract of insurance.
- 01/04/2013
Claims in respect of protected dormant accounts
COMP 10.2.12
See Notes
In the event of a default of a dormant account fund operator, the FSCS will pay compensation in accordance with COMP 10.2.3 R on the basis of the authorisation of the relevant person who was liable for the protected deposit immediately prior to the liability being transferred to the dormant account fund operator (and the relevant authorisation of the relevant person is the authorisation that was in place at the time that the liability was transferred).
- 01/04/2013
COMP 10.2.13
See Notes
The purpose of COMP 10.2.12 R is to ensure that persons whose balances in a dormant account have been transferred to a dormant account fund operator do not have their entitlement to compensation reduced in the event of default of the dormant account fund operator. So, a person who held dormant accounts with two different relevant persons, the liability for which were then automatically transferred to the dormant account fund operator, could still be compensated by the FSCS on the basis of accounts with two separate relevant persons (and so could receive up to 2 x £85,000 in compensation) rather than just one account with one relevant person.
- 04/10/2013