UK confirms changes to compensation scheme limits
The UK regulator has confirmed it will proceed with proposed changes to the compensation limits for insurance, investments and home mortgage advice in the event of corporate failure.
The Financial Services Authority says the Financial Services Compensation Scheme will provide 90% of the claim for non-compulsory general and life insurance policies, with no upper limit.
Previously, the scheme paid 100% of the first £2000 and 90% of the remainder.
For compulsory cover such as third party motor and employer’s liability insurance, the scheme will continue to provide 100% protection with no upper limit.
The changes take effect from January 1 next year.
The Financial Services Authority says the Financial Services Compensation Scheme will provide 90% of the claim for non-compulsory general and life insurance policies, with no upper limit.
Previously, the scheme paid 100% of the first £2000 and 90% of the remainder.
For compulsory cover such as third party motor and employer’s liability insurance, the scheme will continue to provide 100% protection with no upper limit.
The changes take effect from January 1 next year.