Riot Act "good news for insurers"

Insurers will benefit from a new Riot Act, introduced in response to the 2011 London riots, lawyers say.

The Riot Compensation Act 2016 came into force on 6 April. It allows insurers to reclaim compensation from police authorities, allows uninsured individuals and businesses to claim compensation from police authorities, abolishes the right to consequential damages and introduces a compensation ceiling of £1m per claim.

Neil Beresford, partner at Clyde & Co, said the Act was “good news for insurers” as it clarified the rules on compensation and extended the scheme to motor vehicle damage.

“A key issue will remain how to identify when a riot has occurred,” he said. “This was one of the major problems in the 2011 London riots. The language in the Act has been simplified, with the definition of ‘riot’ now according with the criminal law as set out in s 1 of the Public Order Act 1986.”