Prudential Regulation Authority Rulebook

19.1

The amount of compensation payable to the claimant in respect of a protected claim is the amount of the overall net claim against the relevant person (or where applicable, the successor) at the quantification date and any reference in this Part to overall claim shall be construed accordingly.

19.2

19.1 is, however, subject to the other provisions of this Part, in particular those rules that set limits on the amount of compensation payable for the protected claim. The limits are set out in 17.

19.3

A claimant's overall claim is the sum of the protected claims of the same category that he has against a relevant person (or where applicable, a successor) in default, less the amount of any liability which the relevant person (or where applicable, the successor) may set off against any of those claims.

19.4

In calculating the claimant's overall claim, the FSCS may rely, to the extent that it is relevant, on any determination by:

1. (1) a court of competent jurisdiction;
2. (2) a trustee in bankruptcy;
3. (3) a liquidator;
4. (4) any other recognised insolvency practitioner;

and on the certification of any net sum due which is made in default proceedings of any exchange or clearing house.

19.5

Save as provided in 8.10, the FSCS must take into account any payments to the claimant (including amounts recovered by the FSCS on behalf of the claimant) made by the relevant person (or where applicable, the successor) or the FSCS or any other person, if that payment is connected with the relevant person’s (or where applicable, the successor’s) liability to the claimant in calculating the claimant's overall claim.

19.6

The FSCS must calculate the amount of compensation due to the claimant as soon as reasonably possible after it is satisfied that the conditions in 3.1 have been met.

19.7

In calculating the claimant's overall claim the FSCS must take into account the amounts paid by, or expected to be paid by, the Society from the Central Fund to meet a member's liabilities under the contract which gives rise to the claim.

19.8

For a claim under a protected contract of insurance that is a contract of long-term insurance, the FSCS must determine as the quantification date a specific date by reference to which the liability of the relevant person (or where applicable, the successor) to the eligible claimant is to be determined.

19.9

For a claim under a protected contract of insurance that is a relevant general insurance contract, the FSCS must determine as the quantification date a specific date by reference to which the liability of the relevant person (or where applicable, the successor) to the eligible claimant is to be determined.

19.10

For a claim in respect of the unexpired premiums under a protected contract of insurance that is a relevant general insurance contract (treated in accordance with 9.8(3)), the quantification date, being the date by which the liability of the relevant person (or where applicable, the successor) to the eligible claimant is to be determined, is the date the policy was terminated or cancelled.