The Riot Act introduced in 1886 means anyone who has property or buildings damaged in a riot can request a payout from their police force, with no limit on how much can be claimed.
The Association of British Insurers welcomed Cameron’s announcement that the Riot Act police compensation schemes will operate as normal.
David Cameron also promised to use the ABI’s expertise to help the government and police authorities to implement the scheme.
The announcement came as the ABI revised its estimated figure of claims likely to be paid out by the insurance industry to be in excess of £200m rather than £100m.
The ABI has said it will provide the government with senior claims directors to give strategic advice and technical claims handler experts to assist with adjudication.
The ABI has also offered actuarial assistance to ensure the government is able to accurately quantify the cost of the scheme and assistance in developing a workable claims notification form. It will also offer assistance in negotiating appropriate rates with loss adjusters.
Otto Thoresen, director general of the ABI, said: “The insurance industry is already paying out claims to people with insurance but wants to do more to support the government in helping people get back on their feet.
“We will work in partnership with the government and share our expertise, to make sure that the police compensation schemes work effectively and get compensation to people who need it quickly. It is important that after the sad events of recent days we do everything we can to help people recover.”
