Part 4

Consumer rights and disputes
Chapter 3

Consumer Savings Schemes

Insurance arrangements
286
1
Where a trader relies on arrangements under this section for the purpose of satisfying section 285, the trader must maintain insurance under one or more appropriate policies with an insurer authorised in respect of such business in the United Kingdom, the Channel Islands or the Isle of Man.
2
In this section “appropriate policy” means a policy—
a
under which the insurer agrees to indemnify consumers in the event of the insolvency of the trader;
b
under which consumers are insured persons in respect of the costs referred to in paragraph (d);
c
which does not contain a condition which provides (in whatever terms) that no liability arises, or that any liability arising ceases—
i
in the event of some specified thing being done or omitted to be done after the happening of the event giving rise to a claim under the policy;
ii
in the event of the policy holder not making payments under or in connection with other policies; or
iii
unless the policy holder keeps specified records or makes available to, or provides the insurer with, information from those records; and
d
which covers the costs of returning to the consumer any protected payments at the time of the insolvency.
3
The trader must meet the costs of arranging and maintaining an appropriate policy and any related charges or taxes, without recourse to the consumer payments which are to be protected under that policy.
S. 286 not in force at Royal Assent, see s. 339(1)
S. 286 in force at 1.1.2026 by S.I. 2025/272, reg. 3