Claims process

Since the extension of the Scheme's remit to include customers of general insurance intermediaries (on 14th January 2005), FSCS has only declared one insurance intermediary in default:

FSCS can only consider claims relating to policies sold on or after 14 January 2005 and only against firms that were fully authorised at the date the policy was arranged. You can check whether a firm is authorised by using the FCA's firmcheck service.

Here are some examples of areas of insurance mediation that may give rise to claims in the event that an authorised firm cannot pay claims against it:

  • If the firm had not yet placed cover with an insurer before its date of default, the customer could be entitled to a return of premium, or payment of a claim if one was outstanding at that date.

  • If a firm places insufficient cover for its customer, or fails to tell the customer about a relevant exclusion in the contract, which causes the insurer to reject the claim.

  • In the event of fraud, for example, if premiums are inflated for the intermediary's own gain or even fraudulent selling where the customer is told they have cover but no insurer actually exists.

  • If the firm uses the services of a secondary intermediary to arrange cover for its customers, and the secondary intermediary becomes insolvent before passing premiums to an insurer. In this situation, all of the firm's customers may suffer if there is any shortfall in client monies. Customers may be able to receive compensation from FSCS for any financial loss incurred as a result of this.

Compensation limits

90% of the claim is covered, with no upper limit. Compulsory insurance is protected in full.

How to claim

About the FSCS

Click here to find out more about the FSCS, its role, its operations and its personnel.


The Financial Conduct Authority website includes a searchable database of all firms authorised and regulated by the FCA and the Prudential Regulation Authority (PRA).


The Financial Ombudsman Service is the official independent expert in settling complaints between consumers and financial businesses

Jargon Buster

  • Authorised firm

    a company, unincorporated body, partnership or individual permitted to carry out a regulated activity by the FCA or the PRA. This term includes a mutual (unincorporated) organisation, for example a friendly society.
  • FCA

    The Financial Conduct Authority is the UK's regulator for the financial services industry. 

  • FSA

    Financial Services Authority, was previously the UK's regulator for the finance industry. It was replaced by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) on 1 April 2013.
  • In default

    A firm unable, or likely to be unable to pay claims against it. This will generally be because it has stopped trading and has insufficient assets to meet claims, or is in insolvency.