Under the Financial Services Compensation Scheme, for what total percentage of a compulsory third party motor insurance claim may compensation be provided?

Under the Financial Services Compensation Scheme (FSCS), compensation for a compulsory third-party motor insurance claim is provided at a rate of 100%. This means that if a policyholder suffers a loss due to the failure of an insurer to meet its obligations, the FSCS ensures that the claim will be fully covered. This is significant because it offers a level of security and reassurance to consumers, guaranteeing they won't suffer financial losses as a result of their insurer failing.

With compulsory third-party motor insurance being a legal requirement in many jurisdictions to protect victims of road traffic incidents, ensuring full compensation supports the broader goal of consumer protection in the insurance market. The FSCS acts as a safety net for consumers, helping to maintain trust in the financial services industry. This is particularly relevant in the context of mandatory insurance, as it reinforces the importance of having adequate coverage while ensuring that affected individuals can receive full compensation for their claims.