BREAKING NEWS: Government decision on Sydney Siege

BREAKING NEWS: Government decision on Sydney Siege

BREAKING NEWS: Government decision on Sydney Siege Treasurer Joe Hockey has declared the Lindt Café siege that saw three people killed and businesses in Martin Place in lock-down was a “terrorist incident,” it has been announced.

Insurers and business owners had been waiting since the incident at the end of November to see whether the tragedy would be considered an act of terror and to ensure that policies with terrorism exclusions would be paid.

“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,” Hockey said in a statement.

“Prior to making this decision, appropriate consultation was undertaken with the Attorney-General and a number of stakeholders, including the Insurance Council of Australia.”

A spokesperson for the ICA told Insurance Business: “We’ve been consulted by government and we welcome the declaration.”

“It’s a normal part of the process in order to trigger the arrangements under the reinsurance pool corporation.”

 “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,” Hockey continued.

“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.”

As Insurance Business reported earlier in the week, Suncorp Commercial Insurance had announced that they would be paying claims regardless of the Government decision.

The ICA continued Hockey’s praise of the insurers involved, noting: “They were moving very fast on those claims; this declaration of the event is something of an accounting procedure that facilitates those insurers that are paying those claims to work with the reinsurer.”
8 Comments
  • Janey 15/01/2015 3:42:45 PM
    So Hockey says is a 'terrorist incident' designed so people couldn't claim. And some insurers are paying? So exactly what is this piece about then?

    This was not a terrorist incident. It was a crazy lone gunmen/murderer/nutcase. Just because he happened to be Muslim does not make him a terrorist. Holding an ISIS flag when he had no affiliation is consistent with his madness.
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  • D 15/01/2015 4:02:39 PM
    Janey, designed so that it triggers the terrorism exclusion which enables the insurer to PAY based on the Terrorism Insurance Act, so the government will compensate down the line.

    Terrorism: the unofficial or unauthorized use of violence and intimidation in the pursuit of political aims.

    Not to mention ISIS (and others) cheered on this act.

    Honestly, take a little bit of time next time you choose to comment.
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  • Brett 15/01/2015 4:03:28 PM
    I'm Glad I am not the only one confused by this article.
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