COMP 3.2 The qualifying conditions for paying compensation

The FSCS may pay compensation to an eligible claimant, subject to COMP 11 (Payment of compensation), if it is satisfied that:

1. (1)

   an eligible claimant has , for claims other than claims under a protected contract of insurance, made an application for compensation ;

2. (2)

   the claim is in respect of a protected claim against a relevant person who is in default;

3. (3)

   where the FSCS so requires, the claimant has assigned the whole or any part of his rights against the relevant person or against any third party to the FSCS, on such terms as the FSCS thinks fit; and

4. (4)

   in the case of a claim under a protected contract of insurance:

   1. (a)

      it is not reasonably practicable or appropriate to make, or continue to make, arrangements to secure continuity of insurance under COMP 3.3.1 R; or

   2. (b)

      it would not be appropriate to take, or continue to take, measures under COMP 3.3.3 R to safeguard policyholders of an insurance undertaking in financial difficulties.1

The FSCS may also pay compensation (and any recovery or other amount payable by the FSCS to the claimant) to a person who makes a claim on behalf of another person if the FSCS is satisfied that the person on whose behalf the claim is made:

1. (1)

   is or would have been an eligible claimant; and

2. (2)

   would have been paid compensation by the FSCS had he been able to make the claim himself, or to pursue his application for compensation further.