The Association of British Insurers (ABI) continues to raise the claims estimates from the recent riots in London and other regional centres upwards, with its expectation currently standing at “in excess of £200 million” ($316 million).

After initial conjecture over who will foot the final bill, British PM David Cameron has confirmed that damages will be covered by the 1886 Riot (Damages) Act.

Under the Act, anyone who has property or buildings damaged in a riot can request a payout from their local police force, with no limit on how much can be claimed providing the claim is lodged within 14 days of the damage occurring.

The police are liable for the costs regardless of how they managed the riots and do not need to be found at fault in order to have to pay.

Insurers can also seek to reclaim money under the Act for claims paid.

Mr Cameron also announced an extension of the timeframe for the lodgement of claims to the police compensation schemes to 42 days, after the insurance industry noted the 14-day lodgement period would be problematic as many damaged properties are not safe to enter or are still designated as crime scenes.

It is not yet known whether London’s Metropolitan Police has insurance to cover its exposure to the damage.

After the last major riots in the UK – in 2002 at Bedford’s Yarl’s Wood immigration centre – many insurers withdrew from providing police cover.

Following the 2002 riots the Bedfordshire Police were found liable for damages of more than £40 million ($63 million), with their exposure insured at Lloyd’s.

QBE Syndicate 386 consequently led a legal challenge against the claim but lost and the matter was settled out of court.