In section 4 of the Damages Act 1996 -

(a) in subsection (1) after "insurer)", and in subsections (2) and (3) after "sections", insert "as applied by any transitional provisions made by order under section 426 of the 2000 Act";

(b) after subsection (3), insert -

"(3A) In relation to an annuity -

(a) purchased for a person pursuant to a structured settlement from an authorised insurer;

(b) purchased from such an insurer pursuant to any order of the kind referred to in subsection (2); or

(c) purchased from or otherwise provided by such an insurer pursuant to terms corresponding to those of a structured settlement contained in an agreement of the kind referred to in subsection (3),

any long term insurance provision in the Financial Services Compensation Scheme has effect in accordance with subsection (3B).

(3B) To the extent that any long term insurance provision limits the obligation of the scheme manager to make payments or secure continuity of insurance by reference to any amount less than the full amount of any liability, benefit or value due under a contract of long term insurance, the provision has effect as if the reference to that amount were a reference to the full amount of the liability, benefit or value.

(3C) In this section -