The insurance industry is blaming out dated legislation and police authorities for delays in insurance payout to businesses following the riots.

Figures released by the Association of British Insurers on the anniversary of the riots show seven per cent of small businesses which made claims in the aftermath have yet to receive any pay out.

Insurers were inundated with 3000 riots claims, with a total of £200m expected to be paid out.

Pay out delays or failures have been blamed on the Riot Damages Act, which requires insurers to go through police authorities to secure the money for those not adequately covered by their policies.

Aidan Kerr, head of property at the Association of British Insurers said: "The Riot Damages Act is crucial in providing financial compensation to victims of riots who do not have property insurance or are underinsured but the current lack of a standard approach has caused unacceptable delays and confusion.

"The ABI is calling for urgent reform to simplify and streamline the Act so that it delivers for those who need it most." Rob Atkin, acting borough commander at Croydon said: "The MPS has been working hard to process claims as quickly as possible.

"On August 2 a letter was sent to all victims whose claims have not been concluded to help assist people to understand the process and what evidence they need to provide. The letter has also been sent to all the insurance companies and the legal representatives involved.

"If you have sent in a claim and it has not been concluded please check our website and contact us."