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Policyholder Protection Limits on Compensation Payable

Application provision

1.1 This Part applies to the FSCS, and for the purposes of chapter 21, 22.6 - 22.8 and Annex 2, this Part also applies to participant firms and the Society.

17.1

03/07/2015

The limits on the maximum compensation sums payable by the FSCS for protected claims are set out in 17.2.

17.2

01/10/2015

  1. (1) For a protected contract of insurance when the contract is a relevant general insurance contract: 
    1. (a) if the claim:
      1. (i) is in respect of a liability subject to compulsory insurance; or
      2. (ii) is in respect of a liability subject to professional indemnity insurance; or
      3. (iii) is in respect of and arises from the death or incapacity of the policyholder due to injury, sickness, or infirmity;
      4. the level of cover is 100% of the claim; and 
    2. (b) in all other cases the level of cover is 90% of the claim; and 
    3. in each case, cover shall be determined in accordance with 19 and 20 and there is no upper limit on the amount that can be paid.
  2. (2) For a protected contract of insurance when the contract is a contract of long-term insurance, the level of cover is 100% of the claim determined in accordance with 19 and 20 and there is no upper limit on the amount that can be paid.

17.3

03/07/2015

In applying the financial limits in 17.2 and in calculating the amount of a claim in respect of a protected contract of insurance arising 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.