Many policyholders have faced significant delays in receiving their payments.
In August of 2011, businesses throughout London were faced with significant damage due to massive rioting throughout the city, and the latest insurance news has shown that many have not yet been compensated by their insurers.
It is estimated that one third of the businesses hadn’t received anything four months after making a claim.
One out of every three claims made by businesses following the rioting have made insurance news because they hadn’t received a single penny to help to cover the cost of the repairs from the disturbances throughout the city.
This, according to an insurance news report that was just released in the United Kingdom.
In fact, many businesses made further insurance news by having to depend on charitable donations from organizations such as the High Street Fund simply to be able to keep their doors open. A group of politicians from London’s City Hall have stated that there should have been a much faster process to ensure that the businesses that were affected by the rioting would receive the necessary compensation, as per the terms of their policies.
The Budget and Performance Committee from the London Assembly released the insurance news report, entitled “Picking up the Pieces.” It detailed a number of different recommendations that were made in order to prevent this type of lack of service from happening again if another large scale disaster should ever occur in the city.
The document claims that the lack of urgency from the insurance industry and the Government, combined with a weak level of coordination immediately following the riots, meant that the recovery process was an exceptionally slow one.
The budget and performance committee chairman, John Biggs, said that the “The Riot (Damages) Act needs to be reformed and we would like to see the insurance industry using its skills and experience to play a leading role in administering government cash in the future.”
A follow up meeting has now been scheduled for this insurance news. It will take place at City Hall on December 4, in order to discuss the recommendations and their implementation. Representatives from the government, the insurance industry, and the High Street Fund are all expected to be present.