Response to the statement issued by Zurich Insurance 16/11/2011

On Monday 14 November 2011, David Lammy appeared on the BBC Radio 5Live riots panel deabte and remarked about the difficult with which many Tottenham residents had had with Zurich Insurance. In response to this, Zurich Insurance issued a statement which David has now replied to, point-by-point, below:

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"We're sorry that Mr Lammy believes Zurich's response has been poor. We were first on the scene when the police cordons were lifted and the first insurer to extend our own claims notification period to 30 days (from 7 days) to assist customers responding to the sad events of 3 months ago."
I am surprised Zurich are using this statement to boast about precisely what one would expect of an insurance company. To turn up to the scene of a burnt out building that you insure would be an expectation of the residents, not something that they are privileged to have experienced.


"In particular reference to our activities in Tottenham, we have been liaising with our customers (Metropolitan Housing Trust and Threadneedle) to ensure all the residents are in alternative accommodation and their needs met."
The problem is just that – they have been liaising through MHT and Threadneedle, without having any meaningful engagement with the residents themselves.  This has meant it has been difficult for residents to communicate their concerns upwards to Zurich, and perhaps as a result Zurich has not been as responsive as it should have been.

For example:

• No support was given to help residents actually locate properties.  This was very difficult given most were in full-time jobs.
• Residents have told us that rental payments have been late.
• Zurich will say they sent representatives to meetings with residents – there is a consensus from residents that the representative was unhelpful and misleading.

"Indeed we made the first payment to our customers for alternative accommodation in the first week following the riots and indeed many more substantial payments since."
But even the payouts did not accurately reflect the costs incurred by families in their temporary accommodation. Laundry and travel, for example, were not reimbursed, despite families making completely legitimate applications.

The truth is that many residents now find themselves in a position where they are out of pocket, despite assurances to the contrary.


"We were also the first insurers to meet Harringey Council to discuss planning issues with a view to having the premises rebuilt as soon as possible."
The meetings to rebuild the apartments are not at the forefront of residents’ minds. Zurich have failed to communicate adequately with residents about their intentions for the rebuilt flats.


"We have been discussing these matters directly with Mr Lammy and his office regularly in recent months and he is aware of all our activities - including several which would not have been included in the residents insurance policies - to help his constituents. We are committed to fulfilling our responsibilities with our policyholders."
My office only became involved with Zurich BECAUSE their response to the concerns of residents had been so woeful. A number of residents had got in touch to express concern and it was MY office that got in touch with them. Even when my office got in touch, Zurich were reluctant to cooperate. It is completely untrue the impression they have given that they have been proactive on this matter.

Landlords who let their properties out whilst not living there themselves were left completely uncovered by Zurich, despite suffering a huge loss of income and many are on the verge of bankruptcy. Zurich only relented on this issue AFTER vigorous lobbying by my office and others – they did not give this up lightly.