Following calls from the insurance industry for urgent government reforms relating to riot damage, the government has announced a review of the Riot Damages Act 1886.

The Association of British Insurers responded quickly to the riots and have now settled over 98% of household claims, 93% of small business claims and 99% of large commercial claims.

Despite insurers settling the vast majority of claims, over half of claims submitted to police authorities under the Riot Damages Act have been declined.

The government review will look at the definition of what constitutes a riot; current criteria for compensation payable under the act, level of entitlement and who should be liable.

The industry is calling for clear processes for police as well as review of the notification period and time limit.  The government review is expected to go until the end of 2013.