A3 FSCS data - Guidance note for branch passporters
Please calculate your 'relevant net premium income' – this is your firm's premium income for protected contracts of insurance during its 2006 financial year.
What is a protected contract of insurance?
Protected contracts of insurance are defined in Chapter 5.4 of the Compensation module of the FSA Handbook
In summary, they are non-life contracts your firm has issued from its UK branch where the risk is located in the EEA (including the UK), the Channel Islands or the Isle of Man.
The location of a risk is determined as follows:
- for a building or contents policy, where the building is situated;
- for a vehicle policy, where the vehicle is registered;
- for a travel/holiday policy lasting four months or less, where the policyholder took out the contract;
- for other types of contract where the policyholder is an individual, where that policyholder habitually resided when the contract commenced; and
- for other types of contract where the policyholder is not an individual, where the establishment the risk relates to was situated when the contract began.
Do not include reinsurance contracts, or contracts covering the following classes of business: aircraft, ships, goods in transit, aircraft liability, liability of ships, credit (these classes are some of those referred to as 'large risks' in the First Non-Life Directive).
Is my firm exempt?
If you do not conduct any business that could give rise to a protected claim from eligible claimants then you can apply for an exemption from certain Financial Services Compensation Scheme (FSCS) levies.
Eligible claimants are defined in Chapter 4 of the Compensation module in FSA Handbook, but – broadly – for non-life insurance policies individuals and small businesses are eligible. Please note that for certain compulsory insurances (e.g. third-party motor insurance or employers' liability insurance) all policyholders are eligible claimants.
What do I do next?
Please email your relevant net premium income figure, together with your firm's full name and address, to: Feetariffreturns@fsa.gov.uk
If you believe your firm meets the conditions for exemption, then please confirm this in writing to the email address above. You need not calculate your relevant net premium income.