Explanatory Notes

Courts Act 2003

2003 CHAPTER 39

20 November 2003

Commentary

Damages

Section 101: Periodical payments: security

360.At present, private sector defendants and insurers generally provide periodical payments under a “structured settlement”, that is by the purchase of an annuity for the claimant.   This is because payments under an annuity are secured against the failure of the Life Office under the statutory protection provided by the FSCS (the scheme created under section 213 of the Financial Services and Markets Act 2000).