Two companies which provide home insurance as well as commercial insurance cover, have won a case which will have far reaching implications for the whole of the industry believes the bestmoneysaver team.
A court has found in the favour of the two insurers who were claiming against police bosses for compensation after the riots of 2011. The companies argued that the Met were responsible for damages caused to the Sony distribution centre, because existing legislation rules that any damage by riot should be made good from police funds. The amount claimed was in excess of £60 million.
The insurance companies won the argument in court, because the judge ruled it was a riot planned by a number of individuals and that the police had been warned on many occasions that the trouble was on the cards. The police argued that far from being a riot, the trouble was a “…planned criminal enterprise…”. They said it was not a riot, but a criminal raid.
The actual amount to be paid by the Met remains to be decided.
In his written ruling, the High Court judge said: “Two of them then threw petrol bombs into the stacking within the warehouse and they all made their escape, some carrying what had been looted, and left the warehouse to burn.
“The whole incident took no more than just over three minutes…However the fire took hold and burned for some 10 days, with the total destruction of the plant, equipment and stock.”
A spokesperson for the police said: “While we are pleased that the court has recognised MOPAC is not responsible for covering consequential losses, it is immensely disappointing that they have ruled this was a riotous act. There is an important point of principle and public money at stake here and we have sought leave to appeal.”