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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.

3.1

01/10/2015

The FSCS may pay compensation to an eligible claimant, subject to 18, if it is satisfied that:

  1. (1) an eligible claimant has made an application for compensation (or falls within the category of persons referred to in 3.2);
  2. (2) the claim is in respect of a protected claim against a relevant person (or where applicable, a successor) who is in default;
  3. (3) where the FSCS so:
    1. (a) requires, the claimant has assigned the whole or any part of his rights under the protected contract of insurance against the relevant person (or where applicable, a successor) or against any third party to the FSCS, on such terms as the FSCS thinks fit; and/or
    2. (b) determines, the claimant has immediately and automatically subrogated all or any part (as determined by the FSCS) of its rights and claims against the relevant person (or where relevant, a successor) under the protected contract of insurance or against any third party to the FSCS, on such conditions (under 13) as the FSCS thinks fit; and
  4. (4) it:
    1. (a) is not reasonably practicable or appropriate to make, or continue to make, arrangements to secure continuity of insurance under 4.1; and/or
    2. (b) would not be appropriate to take, or continue to take, measures under 5.1 to safeguard policyholders of a relevant person in financial difficulties.

3.2

03/07/2015

The FSCS may treat persons who are or may be entitled to claim compensation as if they had done so.

3.3

03/07/2015

The FSCS may pay compensation (and any recovery or other amount payable by the FSCS to the claimant) to a person who makes a claim on behalf of another person if the FSCS is satisfied that the person on whose behalf the claim is made:

  1. (1) is or would have been an eligible claimant; and
  2. (2) would have been paid compensation by the FSCS had he been able to make the claim himself, or to pursue his application for compensation further.

3.4

03/07/2015

Notwithstanding any provision in this Part to the contrary, the FSCS may:

  1. (1) pay compensation in accordance with 18;
  2. (2) secure continuity of a contract of long-term insurance in accordance with 4.1;
  3. (3) make a payment to an eligible claimant in accordance with 4.3; or
  4. (4) take such measures as it considers appropriate in accordance with 5.1;
  5. without fully or at all investigating the eligibility of the claimant and/or the validity and/or amount of the claim, if in the opinion of the FSCS:
    1. (a) the costs of investigating the merits of the claim are reasonably likely to be disproportionate to the likely benefit of such investigation; and
    2. (b) (as a result or otherwise) it is reasonably in the interests of relevant persons to do so.