A new service has been launched which may help people claim endowment compensation against a firm which has gone out of business since selling the policy.

In such cases, many people can be helped by the Financial Services Compensation Scheme (FSCS), a statutary compensation fund paid for by the financial services industry.

The FSCS has now launched an online claim test which will help endowment policy holders see if they have a valid claim.

To use the test, you simply need the 6 digit FSA authorisation number of the company you bought the policy off. If the test indicates that you may have a valid claim, it will automatically generate an application form which you can fill in and start the compensation claim process.

The FSCS says that endowment claims have been submitted in record numbers over the last two years, and that the new service is part of new processes they are implementing to ensure consumers get a faster and more efficient service.

FSCS says it received around 9,000 endowment claims in 2004/5, which is expected to rise to 22,000 in 2005/6 and 26,000  in 2006/7.

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