The Prime Minister has extended the window for people to claim compensation from the state over riot damage from 14 to 42 days.
Under the 1886 Riot (Damages) Act, people can claim damages from the police or their local authority for damages resulting from a riot.
If an insurance firm pays an individual who has applied to the scheme, the amount the policyholder receives from the state will be reduced by the same amount, with the money instead going to the insurance firm.
The ABI estimates insurers will pay out in excess of £200m to policy holders as a result of this week’s rioting and looting in London, Manchester, Birmingham and other English cities.
Cameron (pictured) made the announcement in his statement on the social unrest in the House of Commons this morning, after Parliament was recalled from summer recess to debate the issue.
He also announced a £20m “high street support scheme” for businesses affected by the violence. He added it is important that people who suffered damage receive payouts quickly.
The Association of British Insurers welcomes the extension and says it is helping the Government to run the scheme.
ABI director general Otto Thoresen says: “The insurance industry is already paying out claims to people with insurance, but wants to do more to support the Government in helping get people get back on their feet. It is important after the sad events of recent days that we do everything we can to help people recover.”