COMP 11.2 Payment
To whom must payment be made?
If the FSCS determines that compensation is payable, it must pay it to the claimant, or as directed by the claimant, unless:
- (1)
arrangements have or are being made to secure continuity of insurance under COMP 3.3.1 R to COMP 3.3.2E R or the FSCS is taking measures it considers appropriate to safeguard eligible claimants under COMP 3.3.3 R to COMP 3.3.6 R; or
- (2)
COMP 11.2.2 R or COMP 11.2.3 R applies.1
Where a claimant has a protected claim arising out of the circumstances described in COMP 12.4.5 R, the FSCS must pay any compensation to:
- (1)
the trustee of an occupational pension scheme; or
- (2)
a personal pension scheme or other product provider; or
- (3)
both (1) and (2);
and not to the claimant, unless exceptional circumstances apply.
Reduced or interim payments
If the FSCS is satisfied that in principle compensation is payable in connection with any protected claim, but considers that immediate payment in full would not be prudent because of uncertainty as to the amount of the claimant's overall net claim, it may decide to pay an appropriate lesser sum in final settlement, or to make payment on account.1
The FSCS may not pay a lesser sum in final settlement under COMP 11.2.4 R and COMP 11.2.5 R where the claim is a DGD claim or ICD claim.
1COMP 11.2.4 R applies to compensation payable in connection with any protected claim. It would, for example, apply to the situation where the FSCS considers it imprudent to make a payment in full because of uncertainty as to the value a court might attribute to a bonus provided for under a long-term insurance contract. In such circumstances the FSCS may make payment of compensation on account to the policyholder in respect of benefits under the contract the value of which is not uncertain.
Paying interest on compensation
The FSCS may pay interest on the compensation sum in such circumstances as it considers appropriate.
Interest under COMP 11.2.7 R is not to be taken into account when applying the limits on the compensation sum payable in respect of a claim under COMP 10.