The Australian government has backed a scheme forcing insurance companies to provide cover against terrorist attacks.
State Treasurer Mr Peter Costello said the scheme would be funded by commercial interests, largely through premiums.
He said the government decided on the plan after companies complained they could not secure terrorism insurance after last year's September 11th attacks.
He said an initial pool of $300 million Australian dollars (€170 million) would be funded by premiums.
"The pool will be supplemented by a back-up bank line of credit of one billion dollars, underwritten by the commonwealth, as well as a commonwealth government indemnity of nine billion dollars, giving aggregate cover of up to $10.3 billion when the pool is fully funded," he said.
The government would set up a new body, the Australian Reinsurance Pool Corporation, to manage the scheme, which should run from July 1st next year.
It will compel insurance firms to provide cover for terrorism risk on all policies in all classes of insurance included in the scheme.
AFP