Terrorism exclusions overruled for Bondi attack-related insurance claims
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The news: The federal government has formally nullified terrorism exemption clauses in insurance policies of businesses affected by the Bondi terrorist attack on Sunday evening.
The context: Businesses cannot have legitimate insurance claims denied on the grounds that their insurance policies include terrorism exclusions. Relevant claims include commercial property damage, business continuity losses and public liability.
According to a statement from Treasurer Jim Chalmers and Assistant Treasurer Daniel Mulino, the power has been executed by declaring the attack a terrorist incident under the Terrorism and Cyclone Insurance Act 2003 following advice from relevant agencies and in consultation with the Minister for Home Affairs Tony Burke.
The move was signalled by the Prime Minister during a press conference on Monday afternoon.
The declaration also activates the Terrorism Reinsurance Pool, which is operated by the government’s Australian Reinsurance Pool Corporation, which was set up to provide insurance cover for terrorism related losses taken by insurance companies.
The Insurance Council of Australia (ICA) has also declared the attack a ‘significant event’, enabling insurer support to be prioritised and for claims data to be collected and tracked.
What they said: "Our thoughts first and foremost are with Australia’s Jewish Community in this time of great mourning for the victims of Sunday’s horrendous attack,” ICA CEO Andrew Hall said.
"The industry is committed to supporting those Bondi businesses impacted through the recovery ahead."
The source: Assistant Treasurer Daniel Mulino media release
