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Official Declares Sydney Siege Terrorist Incident for Insurance Purposes

© AP Photo / Rob GriffithPolice stand near a police line to stop pedestrian access close to a cafe under siege at Martin Place in Sydney, Australia, Monday, Dec. 15, 2014
Police stand near a police line to stop pedestrian access close to a cafe under siege at Martin Place in Sydney, Australia, Monday, Dec. 15, 2014 - Sputnik International
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December’s siege in a Sydney cafe was declared a terrorist incident in order to ensure businesses that suffered damages from the incident will not be denied claims due to terrorism exclusions in their insurance policies, according to Australian Treasurer Joe Hockey.

People bear flowers in memory of the dead in cafe in Sydney, Australia - Sputnik International
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Sydney Siege Victims Should Receive Compensation Under Federal Scheme
MOSCOW, January 15 (Sputnik) — Australian Treasurer Joe Hockey declared December’s siege in a Sydney cafe a terrorist incident, ensuring those affected will receive insurance payouts.

“I have today declared the siege a ‘terrorist incident’ for the purposes of the Terrorism Insurance Act,” Hockey said, as quoted by local media. “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."

According to the treasurer, three insurers have already registered claims, stating they would not apply terrorism exclusion clauses. He praised the companies for “acting so responsibly at this difficult time.”

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Hockey added that he consulted the Attorney General and Australia’s Insurance Council before making the decision to classify the siege as a terrorist incident.

In December, almost 20 people were held hostage in a cafe in Sydney. Police stormed the eatery after a 16-hour siege. Three people were killed, including the gunman.

Following the incident, Prime Minister Tony Abbott stated that the terror threat in the country remained high.

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