FAQs - Claims against insurance brokers
1. What should I do if I have a claim against an insurance broker?
If you have a claim against an insurance broker that is unable to pay your claim, for example because it has stopped trading or has 'disappeared', please contact us.
If an insurance broker becomes insolvent, the liquidator or FSCS will get in touch with you to explain what is happening to your policy or claim. It may be possible to transfer your policy, or otherwise ensure that your cover will continue. If not, you may be entitled to receive compensation.
We will work with the firm or its liquidator in dealing with claims. We will try to do so as quickly as possible, but both FSCS and the liquidator are subject to certain legal requirements and, if there are a large number of policyholders, some delay is likely.
If you think you have a claim but are not contacted, or if you are worried about what is happening with your claim, please contact us.
If we can help with your claim, we will write to you to ask you to complete a detailed application form.
2. Why do I have to fill in an application form?
The application form tells us what type of claim you have and why you believe you have a claim. It also gives us the authority we need to collect information relevant to your claim.
Please provide as much information as you can, answer all the questions and provide any documentation that you have.
3. How long will it take to process my claim?
After a firm has been declared in default, FSCS generally aims to process your claim within six months of receiving your application form. However, delays may be caused by factors outside our control, or because the claim is particularly complicated. For example, we may have difficulty getting hold of important files from third parties; we may be waiting for information from a liquidator; or we may have many claims arising from a particular default which will take time to process.
If you are facing particular hardship, we will try to deal with your claim as a priority. If this is the case please contact us.
4. Can you compensate companies as well as people?
The Scheme was set up mainly to assist private individuals, although some smaller businesses are also covered.
5. FSCS says it cannot help me. Why?
There are limits to the protection that FSCS can provide. For example, FSCS can only consider claims relating to advice on policies or arranging of policies on or after 14 January 2005, and only against firms that were authorised to arrange insurance by the Financial Services Authority (FSA) at the date the policy was arranged.
The FSA is the independent watchdog set up by government to regulate financial services in the UK and protect the rights of consumers. You can check whether a firm is authorised by using the FSA's firm check service or by telephoning the FSA's Consumer Helpline on 0845 606 1234.
Insurance brokers first became regulated by the FSA on 14 January 2005.
