A draft Bill to address compensation issues raised by the UK riots of 2011 “could still leave some claimants out of pocket”, according to a leading insurance lawyer.
The Home Office published its Draft Riot Compensation Bill last week. It introduces a new compensation cap and exclusion of consequential loss claims, partially reforms the Riot (Damages) Act 1886, and reinforces the right to claim compensation from the police authorities.
However, Catherine Percy, partner at City law firm RPC, which worked with many claimants following the 2011 riots, said the introduction of a compensation cap, limiting the amount of damages a claimant can claim from the police authorities in the event of riot to £1m, could leave some businesses and insurers exposed.
“The new draft Bill scraps a proposal to limit claimants to businesses with a turnover of less than £2m, a change which will be warmly welcomed,” she said. “However, those with riot claims in excess of £1m will not now receive compensation over this sum.”
