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ABI response to publication of the Riot Damages Act review

An independent review of the Riot (Damages) Act 1886, commissioned by the Home Office, has been published today (November 8, 2013).

Commenting on the publication, ABI Director General, Otto Thoresen, said:

"Overall, we welcome the findings of this report, although there are several aspects that will concern insurers and their customers. 

"The riots of August 2011 highlighted both the value of insurance, with insurers paying out over £200 million to customers, and the importance of the purpose of the Riot Damages Act, so we welcome this report’s finding that the principle of police accountability should be retained in new legislation.  

"The recommendation that insurers should continue to be able to recover from the State certain riot payments made to customers is vital if riot cover is to be affordable and available.  And the proposal to set up a riot claims bureau will cut down the current bureaucratic process to ensure that uninsured riot victims receive compensation much quicker. 

"However, we are concerned that the review recommends that insurer recoveries from the State should be restricted to businesses that turn over less than £2 million a year. This could be a disincentive for some larger firms to locate in some areas.  And, disappointingly, it is not recommended that consequential losses should be covered by new legislation, meaning further losses for uninsured firms.  The Government should carry out an impact assessment on the impact of both of these proposals.”

Read the independent review of the Riot (Damages) Act 1886 in full on the Government website.

Last updated 01/07/2016