On the first anniversary of the August 2011 riots in England, the insurance sector has published riot claims data and calls on the Government to urgently reform The Riots Damages Act (1886). Insurers experienced 3000 riot claims and customers can expect to receive around £200m in compensation from insurers.
Insurers are asking the Government to review the Riot Damages Act to simplify, speed up and improve the claims process to reflect the demands of modern society. Aidan Kerr, Head of Property at the Association of British Insurers, says: “Insurers responded swiftly to help homeowners and businesses recover from last August’s riots and have so far settled over 98 per cent of household property damage claims. In addition, insurers have settled or made payment towards 93pc of small business claims and 99pc of large commercial claims.
“The Riot Damages Act is crucial in providing financial compensation to victims of riots who do not have property insurance or are underinsured but the current lack of a standard approach has caused unacceptable delays and confusion. The ABI is calling for urgent reform to simplify and streamline the Act so that it delivers for those who need it most.”
“While insurers have settled or paid against the vast majority of claims, over half of claims submitted by insurers to police authorities under the Riot Damages Act have been declined. This shows insurers are doing all they can to look after their customers, despite not getting their claims settled by the police authorities.
The ABI is calling for the following changes to the Riot Damages Act:
– A clear, more modern, legislative definition of a riot is needed so victims in different geographical locations are not treated differently. In some areas, claims were made under the Act, that were declined by police authorities as they did not see them as constitutinga riot.
– The claims process for local police authorities needs to be streamlined and standardised
– The ABI would also like to see the time period for notification of claims for Riot Damages Act extended from 14 to 90 days.
The association adds that a small number of highly complex claims are still outstanding where the damage was extensive, resulting in some cases in buildings being completely demolished and the plans to rebuild have yet to be finalised in some cases. These claims inevitably take longer to settle but the ABI adds that insurers are working with their customers to settle these outstanding claims as soon as possible.
Meanwhile Yvette Cooper MP, Labour’s Shadow Home Secretary on the anniversary of London riots, said: “One year on from the August riots, we remember those who lost their lives. And we think of the families and small business owners whose homes and livelihoods were damaged or lost. We remember too the determination of people and communities across our cities to stand up against the awful looting and violence, to clean up the damage, and to support the police and emergency services in restoring order.
“Twelve months on, more still needs to be done to learn the lessons and take action to prevent it ever happening again.
“It is very disappointing that the Government has so far failed to set out a proper programme of action and formal response to the Riots, Communities and Victims Panel or the LSE research.
“The Panel made clear action was needed on issues from policing to crime prevention, community resilience to long term unemployment. That means addressing the problems for policing, where frontline officers are now being cut. It needs a serious focus on crime prevention, including targeting known offenders and gangs, building community resilience, working with problem families and addressing community concerns over stop and search. And it must also mean action to bring down long term youth unemployment to offer hope and alternatives for young people who might otherwise get on the wrong track. Promises by the Government to help those businesses and communities that were badly affected to get back on their feet must be honoured too.
“It is tribute to London’s resilience, strength and dynamism that twelve months on from the August riots, the city and the entire country have come together to deliver and celebrate a fantastic Olympics and show our wonderful country to the world. As we remember the events of last year, we need to draw on the strength of our cities and our communities, and make sure there is long term action to prevent last August ever being repeated.”
