Was the Sydney siege a terrorism event?
Businesses in Martin Place could face smaller insurance payouts if the Sydney siege is deemed a ‘terrorism event’.
It has emerged the decision hinges on what Treasurer Joe Hockey determines the incident to be, the decision process is still ‘ongoing’.
Gunman Man Monis took over the Lindt Cafe on December 15 with 18 hostages and in the end two of the hostages died- cafe manager Tori Johnson and lawyer Katrina Dawson.
Some of the city retailers say sales were down 70 per cent during the siege and large parts of the CBD were closed for days after the event, reports Fairfax Media.
If the siege is determined a terrorism event then a federally funded body called the Australian Reinsurance Pool Corporation can step in to assess the likely loss from the incident.
The corporation has requested insurers to inform the corporation of claims notified and estimates of the likely losses.
The arrangement is designed to protect insurers from large losses and make sure they continue to provide the same products, reports Fairfax.
Fairfax says the ‘government is inclined to declare the event an act of terrorism’ but the Treasurer’s office has declined to make a comment so far.
A Treasury spokesman told Fairfax: ‘We have been talking with insurers and are monitoring the situation closely.
‘We are not aware of any insurers refusing to pay claims.
"The government will do all it can to ensure affected people in the area can get on with business and are no worse off.’
Sanjay Singh, manager of store Pen-Ultimate, told Fairfax they lost ‘almost a week’s business, roughly $25,000 to $35,000.’
