Riot Compensation Act 2016

United Kingdom legislation

The Riot Compensation Act 2016 (c. 8) is an Act of the Parliament of the United Kingdom that repeals the Riot (Damages) Act 1886 and modernizes the procedures for the payment of compensation to persons whose property has been injured, destroyed or stolen during a riot.

It arose as a ballot bill sponsored by Mike Wood MP,^[1] following Government review and consultations on the subject, and it received Home Office support to expedite its passage.^[2]

Background

As a result of the 2011 England riots, significant problems were exposed concerning the administration of claims intended to be indemnified under the scheme established under the Riot (Damages) Act 1886. An independent review of the Act reported in 2013 that:^[3]

• the language of the Act needed to be modernized;
• compensation payable to insurers should be capped;
• it should be extended to cover other types of property such as motor vehicles;
• it should be based on the replacement value of the property damaged, but not include any consequential loss;^[a]
• the Home Office should work with the insurance industry to improve claims administration; and
• interim payments should be made available with respect to claims.

Following a round of public consultations, the Government broadly accepted the reviewer's recommendations, including extending limited compensation for damage to motor vehicles whose policies do not have coverage for riot damages, and further specified that the statutory definition for a riot should be drawn from the Public Order Act 1986.^[4]

The implementing bill was introduced on 24 June 2015, and received royal assent on 23 March 2016.

Significant changes

The Act introduces several key changes, including:^[1]

• allowing insurers who have met claims from people or businesses to claim compensation from the local policing body:^[5][b]
• allowing people and businesses, which are not insured, to claim compensation from the local policing body;^[7]
• requiring that the amount of compensation must reflect only the loss directly resulting from the damage, destruction or theft of the property, and in particular, must not reflect any consequential loss resulting from it;^[8]
• ending unlimited compensation, setting a £1m cap on each claim;^[9] and
• allowing for claims on motor vehicles which are not insured for riot damage, but which are covered by an insurance policy at the time.^[10]

Coming into force

Authority for making necessary regulations^[c] by way of statutory instrument^[12] came into effect on royal assent. The remainder of the Act took effect on 6 April 2017.^[13]

Notes

1. The question of consequential loss was unclear under the 1886 Act, but was held not to be applicable as a result of the Supreme Court's 2016 ruling in The Mayor's Office for Policing and Crime v Mitsui Sumitomo Insurance Co (Europe) Ltd.
2. defined as a police and crime commissioner, the Mayor's Office for Policing and Crime with respect to the Metropolitan Police District, or the Common Council of the City of London with respect to the City of London Police area, by virtue of s. 101(6) of the Police Act 1996^[6]
3. Subsequently passed as The Riot Compensation Regulations 2017.^[11]

References

1. Kennedys 2016, p. 1.
2. "Riot Compensation Bill (Money): Queen's recommendation signified". Parliamentary Debates (Hansard). United Kingdom: House of Commons. 16 December 2015. col. 1650.
3. Kinghan Review 2013, pp. 41–44.
4. "Reform of the Riot (Damages) Act 1886: Summary of Consultation Responses and Conclusions" (PDF). Home Office. March 2015. pp. 18–20, 27–29.
5. s. 1(2)
6. HL Explanatory Notes 2016, p. 4.
7. s. 1(1)
8. s. 8(2)
9. s. 8(1)
10. s. 2 and Schedule
11. "The Riot Compensation Regulations 2017", legislation.gov.uk, The National Archives, SI 2017/371
12. s. 11
13. "The Riot Compensation Act 2016 (Commencement) Regulations 2017", legislation.gov.uk, The National Archives, SI 2017/379

Sources

• Kinghan, Neil (September 2013). "Independent Review of the Riot (Damages) Act 1886: Report of the Review" (PDF).
• "Riot Compensation Act 2016" (PDF). London: Kennedys Law LLP. 2016.
• "Riot Compensation Bill: Explanatory Notes" (PDF). House of Lords. 23 February 2016.

External links

• The full text of Riot Compensation Act 2016 at Wikisource
• "Consultation outcome: Reform of the Riot (Damages) Act". www.gov.uk. Home Office. 12 March 2015.