Riots in London and other cities are probably going to cost insuring companies millions of pounds. London was hit by three straight nights of rioting, plundering and arson by anarchists who wrecked havoc in parts of the British capital. On Monday, violence spread out to other cities.
Insurance analysts are forecasting a repair bill amounting to tens of millions of pounds which has to be absorbed by insurance industry. The insuring companies have to pay as 125 year old British law makes the constabulary liable for property damage induced by rioting and plundering.
According to law, police force is responsible for holding law and order and in case they fail, they have to pay for the damage. This would put police finances under pressure. In 2001, Police force filed for the insurance claims after being forced to pay for fixes and repairs following riots in English towns of Bradford, Burnley and Oldham.
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