So what is the definition of terror?
Terror terminology can have implications for insurance purposes.
Some of those injured were tourists.
Travel insurance can have terror exclusions.
Remember Lindt cafe was declared terror by at the time treasurer Joe Hockey so that businesses could be covered by the terror reinsurance scheme.
http://jbh.ministers.treasury.gov.au/media-release/001-2015/
Following the tragic events at the Martin Place Lindt Café in December 2014, I have today declared the siege a “terrorist incident” for the purposes of the Terrorism Insurance Act.
Prior to making this decision, appropriate consultation was undertaken with the Attorney-General and a number of stakeholders, including the Insurance Council of Australia.
The Government has taken this action to ensure businesses that suffered damages from the incident will not be denied claims due to terrorism exclusions in their insurance policies.
The effect of this ministerial declaration is that insurers will be prevented from refusing claims from affected businesses on the basis that their policies exclude losses from acts of terrorism.
Advice from the Australian Reinsurance Pool Corporation (ARPC) indicates the three insurers that have registered claims to date have stated they will not apply terrorism exclusion clauses. I am pleased to see these companies acting so responsibly at this difficult time.
Individual insurers have different payment thresholds before they can claim from the ARPC, depending on their size. ARPC has reported the current estimate for the total insured is just over $600,000. continues......
