Government releases full response to riot panel’s report

Nearly two years on from the August 2011 riots, the government has today released its full response to the Riots, Communities and Victims Panel’s final report, which was published in March 2012.

The document outlines what the government has done to provide support to those affected by the riots and the actions it is taking to address some of the more “entrenched” issues highlighted by the panel.

The report includes several insurance-related points, namely:

• The Riot (Damages) Act provided a route to compensation for individuals or businesses who suffered uninsured losses to their buildings or property as a result of public disorder;
• Homeowners and businesses who suffered uninsured losses were able to take advantage of an extended claim period under the act from 14 to 42 days, and the claims form was simplified.

Although initial progress was slowed slightly as a result of systems and processes being established, the vast majority of claims have now been dealt with:

• 99% of all valid uninsured claims made under the Riot (Damages) Act have been resolved;
• of those who had insurance, 100% of domestic claims (property and motor) and 95% of small- to medium-sized businesses have received settlement or interim payments;
• further claims were subsequently received by the Metropolitan Police Service after insurers repudiated claims, and 99% of these have been resolved; and
• the Riot (Damages) Act also allows for insurance companies to reclaim costs paid to policyholders from police authorities – 92% of these claims have been decided.

The report also reaffirmed the government’s decision to carry out a review of the Riot (Damages) Act, stating: “We recognise that it is a very old piece of legislation; therefore the review is necessary to ensure that it is fit for a modern policing world, protects the most vulnerable and provides value for money for the taxpayer.

“The government is continually engaging with policing partners, the Association of British Insurers and their members in looking at what can be done to settle the outstanding claims.”

As reported by Insurance Times in May, the Home Office has appointed Neil Kinghan to conduct an independent review of the Riot (Damages) Act.

The review will be completed by the end of September, and the Home Office will then hold a public consultation on options Kinghan identifies before any change is made to the legislation.

Kinghan, a former senior civil servant, conducted a review for Wandsworth Council about the response by the police and the local authority to the riots.