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.
- 01/12/2001
COMP 10.1.2
See Notes
It is also relevant to claimants.
- 01/12/2001
Purpose
COMP 10.1.3
See Notes
- 01/12/2001
COMP 10.1.4
See Notes
- 01/12/2001
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.
- 01/12/2001
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 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.
- 01/12/2003
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 | 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 |
| Protected investment business | 100% x first £30,000 90% x next £20,000 | £48,000 |
| Protected mortgage business |
100% x first £30,000
90% x next £20,000 | £48,000 |
| 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: 100% x first £2000 90% of the remainder of the claim | Unlimited |
- 31/10/2004
COMP 10.2.4
See Notes
- 01/12/2001
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
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.
- 01/12/2001
Continuity of insurance cover
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.
- 01/01/2004
Claims arising under COMP 3.2.4 R
COMP 10.2.9
See Notes
If 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.
- 14/01/2005