This section includes General FAQs on scheme coverage and a separate Q&A on Scheme Changes as a result of the 2015 Triennial Review.
Eligible Insurance Contracts
Does ARPC cover “rolling stock”?
How does a global terrorism policy affect eligibility?
Are Biological, Chemical, Pollution or Contamination Exclusions considered to be Terrorism Exclusions for the purposes of the TI Act?
Does a terrorism sub-limit render a policy ineligible?
Are forklift trucks or other mobile equipment excluded from the Act?
Does the scheme cover medical indemnity insurance?
Does ARPC offer cover for reinsurance contracts?
To what extent is an insurance contract which provides cover to a “public/private partnership” that covers both the government and consortium an eligible insurance contract?
By reason of the Terrorism Insurance Act 2003 and the Regulations made under that Act, a contract of insurance is not an eligible insurance contract to the extent it provides cover to:
(a) the Crown in right of a State, the Australian Capital Territory or the Northern Territory; or
(b) a Minister of the government of a State, the Australian Capital Territory or the Northern Territory (in the capacity of a Minister); or
(c) a Department of the government of a State, the Australian Capital Territory or the Northern Territory.
Consequently, an insurance contract which provides cover to the Crown, a Minister or a Department of a State or Territory and a commercial entity is not an eligible contract of insurance (if it otherwise meets the definition in section 7 of the Act) to the extent it provides cover to the Crown, a Minister or a Department of a State or Territory. Item 8 does not affect the eligibility of such a contract of insurance to the extent it covers a commercial entity.
In an events cancellation policy does an insured have to actually occupy eligible property in order for the contract of insurance to be considered eligible?
Is it compulsory for insurers to reinsure terrorism risk through ARPC?
- purchase terrorism reinsurance from ARPC;
- purchase terrorism reinsurance from a commercial reinsurer; or
- elect to hold the exposure themselves.
Of course, ARPC offers terrorism reinsurance for all eligible insurance contracts and this can be easily arranged by contacting ARPC at [email protected]
Do I have to declare all risk locations even if they are in the same postcode?
Do I report contents only risks in aggregate return?
What elements must be included in the Street Address Detail Aggregate Report, which is due by August 31 each year?
Does the retention figure apply to each and every loss during a retention period or is it an aggregate deductible?
In cases where a parent insurance company has subsidiary insurance companies can ARPC set one retention for the group?
Disclaimer: The Australian Reinsurance Pool Corporation (“ARPC”) is established by section 9 of The Terrorism Insurance Act 2003 (Cth) (“the Act”). The functions and powers of the ARPC are set out in sections 10 and 11 of the Act. The ARPC’s main function is to provide insurance cover for eligible terrorism losses and the ARPC has power to do all things necessary or convenient to be done for or in connection with the performance of that function. In the performance of that function, the ARPC will enter into discussions with insurers concerning the provision by the ARPC of reinsurance cover for eligible terrorism losses. The ARPC does not hold itself out as providing legal advice to insurers or the public in relation to the interpretation, construction or application of the Act and does not do so. The ARPC provides general information on its website, in its publications and in the course of its dealings with insurers about the Act, the regulations made pursuant to the Act and ARPC’s Reinsurance Agreement for Terrorism Risks. That information does not constitute legal advice. Insurers dealing with or proposing to deal with the ARPC should obtain their own legal advice, if that is considered necessary, for the purpose of making decisions.