UK riots: Businesses begin counting the loss

It was 6.30 p.m. on Monday evening when the rioters struck Bees, a big Gujarati-owned jewellery shop in Upton Park, a largely Asian neighbourhood in East London.

Having heard of riots in other parts of East London shops in the area had begun to close down and like others Mr Sushil Raniga had let his staff go home early. He was just sorting out paper work with his elderly father when a group of 30 young men descended on the shop.

Mr Raniga tried to pull the shutters down, in vain. Their windows and glass door were smashed and the son and father ran upstairs, fearful for their lives (they were later told by police that at least some in the group had knives).

When they cautiously came downstairs 20 minutes later after neighbouring shopkeepers had chased the looters away with wooden sticks and cricket bats, they were met by scenes of chaos. Glass everywhere, whole cabinets cleared out, including some of their choicest pieces.

“It was prime stock…We were just getting ready for the Ramadan season,” said Mr Raniga wistfully. Fortunately, they're fully insured and had the glass replaced the next day and are back to somewhat normal functioning.

“At least we didn't lose everything, not like those families in Birmingham,” says Mr Raniga.

It has taken five days for some normality to return to the streets of the UK. The country and individual communities are beginning to count the costs of the violence that has left several people dead, families homeless and businesses pre-dating the Second World War up in flames.

Over 1,200 people – some as young as 11– have been arrested in riots that are deemed even worse than those that took place in the 1980s.

So far the impact on the Indian community remains unclear with significant, if scattered episodes reported. A shop in Wood Green in north London, two in Clapham Junction, businesses in Birmingham, several in Leicester.

3 deaths in Birmingham

In Birmingham, the death of three Pakistani men who were defending their neighbourhood has devastated the whole Asian community in the city.

The Indian community has also become a symbol of the defiance showed by communities against the rioters: in a speech to Parliament, the British Prime Minister, Mr David Cameron, made special mention of the bravery of the community in Southall which came out to defend, patrolling the streets around shops, markets, temples, mosques, churches and Gurudwaras.

“The Indian community has not been targeted specifically. We are in touch with the community but have so far not received any request for help,” said a source close to the Indian High Commission in London. “It's an evolving situation,” they added.

Insurance payout

The Association of British Insurers has so far estimated the amount that will be paid out by the insurance industry is in the region of £200 million (there are currently no estimates of uninsured damage). However, it appears that even the uninsured will be able to receive compensation.

Under Britain's Riot (Damages) Act 1886 individuals, home owners and businesses – even those that are uninsured – that have suffered damage or loss of their building as a result of rioting can claim compensation, Mr Cameron confirmed on Thursday.

“The government will ensure the police have the funds they need to meet the cost of any legitimate claims,” he declared, responding to concerns from police groups, who under the law are liable for these compensation claims, even from insurers. (Police funding has been a major theme of the past few days, with cuts to police budgets under the government's austerity plan coming under attack including from London Mayor Boris Johnson.)

A separate £20-million scheme to help affected businesses to get back up has also been established by the government, while tax payments in some cases may be deferred.

The uninsured sector within the affected Asian community isn't likely to be sizable.

According to Mr Graeme Trudgill of the British Insurance Brokers Association those with one or more employees were required to have employers' liability insurance and were therefore likely to have all the necessary basic forms of protection.

He acknowledged that there were some businesses in the UK that weren't covered by insurance but pointed out that the Riot Act compensation would cover them for all damage to property (though it wouldn't cover them for the loss of business as a result of the damage, as business continuity insurance would).

Another businessman who asked not to be named said he believed that it was largely the more prosperous, larger shops within the Indian community that were affected, and therefore unlikely to face any complications over issues such as questionable immigration status.

By Thursday, apart from the odd siren and a continued heavy police presence on the streets, London is returning to some semblance of normality. Still, businesses remain cautious. Many remain shuttered and those that are open are watchful.

Bharat Kumar, the owner of Punjabi grocer Variety Foods, and was one of the group that chased the looters out of Bees points to a collection of sticks that still stand by the entrance of his shop at the ready. He's not taking any chances.

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