Insurance

You may be entitled to claim compensation if your insurer has failed and was authorised by the Prudential Regulation Authority.

Compensation limits

 

General insurance
100% protected where claims:
  • arise in respect of a liability subject to compulsory insurance; or
  • arise in respect of a liability subject to professional indemnity insurance; or
  • arise from the death or incapacity of the policyholder due to injury, sickness, or infirmity.
90% protected where claims arise under other types of policy with no upper limit.
100% protected for compulsory insurance claims (e.g., third-party motor and employers' liability).
90% protected for non-compulsory insurance claims.
100% protected for compulsory insurance claims (e.g., third-party motor and employers' liability).

For claims under other types of policy
Maximum level of compensation is 100% of the first £2,000 plus 90% of the remainder with no upper limit.
100% protected for compulsory insurance claims (e.g., third-party motor and employers' liability).
90% protected for non-compulsory insurance claims.
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No protection is available for goods in transit, marine, aviation and credit insurance. Contracts of reinsurance are also not protected.

The above dates relate to when the firm failed, not when you received your advice.
Long-term insurance (e.g. pensions and life assurance)
100% of the claim with no upper limit.
90% of the claim with no upper limit.


100% of the first £2,000 plus 90% of the first remainder.
The above dates relate to when the firm failed, not when you received your advice.
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The claim process can vary depending on the failed insurance company and claim type. For further details on how to claim, you’ll need to contact your broker or refer to the failed insurance company’s website.

Insurance brokers

 
You may be entitled to claim compensation if your insurance broker (also known as an intermediary) has failed and was authorised by the Financial Conduct Authority.
 
Here are some examples of areas of insurance broking that may give rise to claims if an authorised firm cannot pay claims against it:
 
  • If the firm had not yet placed cover with an insurer before the date it went out of business, you could be entitled to a return of premium or payment of a claim if one was outstanding at that date.
  • If the firm doesn’t place sufficient cover for you or fails to tell you about a relevant exclusion in the contract, which causes the insurer to reject the claim.
  • Fraud, for example, if the broker inflates premiums for their own gain, or fraudulent selling, where the broker tells you you’re covered but no insurer actually exists.
  • If the firm uses a secondary broker to arrange cover for its customers and the secondary broker becomes insolvent before passing premiums to an insurer. In this case, all of the firm’s customers may suffer if there is a shortfall in client monies. FSCS may be able to pay compensation for any financial loss incurred as a result of this.

Compensation limits

 

90% of the total claim.
100% of the first £2,000, per person per firm then 90% of the remainder.
The above dates relate to when the firm failed, not when you received your advice.

How long will the claim process take?

3 months

FSCS aims to make a decision on your claim within 3 months of receiving your completed application and required evidence. Complex claims may take longer.