Reg. Charity No.1117509
The Matthew Fulham Foundation
The Latest News On The Victims of Overseas Terrorism Bill
Second Reading: House of Lords 20th April 2007
however, this is well short of the sums required to put victims of terrorism abroad on an equal footing with those who suffer criminal injuries of any kind within the UK (and can therefore claim under the Criminal Injuries Compensation Scheme). It is not generally known that standard travel insurance policies exclude any liability for consequences of terrorism abroad. The Government has suggested that travellers be encouraged to buy specialist travel insurance covering losses caused by acts of terrorism. However, this is clearly unrealistic given that less than a third of Britons travelling abroad currently purchase a travel insurance policy of any kind.
7. What happens in other countries? The USA, France, Israel, Australia, Italy, Sweden and Finland all have systems which provide for the support of their own nationals who are victims of terrorism abroad. These are funded through different mechanisms including taxes on property, a levy on property insurance contracts and general state funding.
8. Who pays for it there? In France, a Guarantee Fund provides compensation to French nationals for acts of terrorism perpetrated abroad. The Fund is financed by a levy on property insurance contracts to the amount of Eur3.30 per contract. Israel's compensation scheme was originally funded by a tax on property but it is now funded by the general taxpaying public. In Australia and Italy, the compensation schemes are funded by the State.
9. What has the Government said about it? The Government has indicated it would like to see victims of crime at the heart of the criminal justice system, and in October 2005 the Prime Minister pledged to look into establishing a separate compensation scheme to cover British victims of terrorism overseas. DCMS Minister Tessa Jowell has said "I recognise the Red Cross Scheme is not a compensation scheme and that there is a case for treating all British victims of terrorism, where ever it happens, the same." However, the details of any statutory scheme to be set out by the Government have yet to be published.
10. Practical details:
a. What stage are we at? The bill was introduced in the House of Lords on 19 December 2006. It is now due for its Second Reading.
b. When is the Second Reading? The Second Reading takes place on 20th April in the House of Lords.
c. Where can I find out more? Lord Brennan will be hosting a briefing at the House of Lords of Parliamentarians in the Moses Room on Thursday, 19 April 2007 from 11.30am to 1.00pm. The text of the bill, together with explanatory notes, is available on www.matthewfulham.org
d. For further information, please contact Deirdre O'Leary, Assistant Pro Bono Manager at Lovells. Phone 020 7296 2695 or email Deirdre.O'Leary@Lovells.com
Matthew Fulham (17) killed in Sharm El Sheikh terrorist bombing on 23 July 2005
Jeremy Lakin (28) and Annalie Vickers (31) killed in Sharm El Sheikh terrorist bombing on 23 July 2005
Helyn Louise Bennett (21) killed in Kusadasi terrorist bombing on 16 July 2005
Supporters of this campaign include:
Family groups affected by foreign terrorist attacks
110 MPs who signed the Early Day Motion
British Red Cross
Liberty
1. What is the Victim of Overseas Terrorism Bill and why is it being introduced? The Victim of Overseas Terrorism Bill is a private member’s bill being brought forward by Lord Brennan QC. If enacted it will provide support for British nationals who are injured, or the relatives of those injured or killed, in overseas terrorist attacks. At present there is no UK statutory scheme providing compensation in respect of injuries sustained in terrorist incidents outside the UK, other than in EU member states, available to UK citizens. This Bill is designed to provide compensation at minimum public expense.
2. What happens at present? At present, the Foreign and Commonwealth Office and
the Department of Culture, Media & Sport provide routine emergency assistance for
such victims but this is on a non-
3. What will the bill do? If enacted, this measure will (1) place the assistance
currently provided by the FCO and consular authorities on a statutory footing; (2)
provide for the establishment of a government sponsored reinsurance fund of last
resort with a view to encouraging insurers to cover risks against terrorist injury
which might otherwise be difficult to reinsure on the private market; and (3) provide
for the establishment of a fall-
4. Who would be eligible to receive compensation? The bill is aimed to benefit British
citizens, ordinarily resident in the UK, who have been injured by an act of terrorism
committed abroad. The definition of terrorism in this bill is similar in scope and
structure to that contained in the Reinsurance (Acts of Terrorism) Act, 1993 but
also incorporates elements of the definition of terrorism in the Terrorism Act 2000.
As with the Criminal Injuries Compensation Scheme, stringent tests would be applied
to root out fraudulent claims and an individual's misconduct, criminal convictions
or failure to cooperate with the British authorities would be taken into account
when making (or withholding) an award -
5. What will it cost and how will it be paid for? Compensation will be paid out of the Overseas Terrorism Award Scheme. Using current CICA rules for the calculation of compensation, the estimated cost of operating the Scheme is £3 million per year (as against £200 million paid out in compensation by the CICA). The Scheme could be funded, for example, from the Pool Re Scheme which was set up by the Treasury to provide reinsurance to commercial property insurers following the IRA attacks in 1993. Income from Pool Re is payable to HM Treasury and Pool Re currently has reserves in excess of £1,664 billion. Alternatively, the Government could follow the example of France by introducing a levy on certain insurance contracts (see question 8 below).
6. What are the alternatives? The DCMS, through the administration of the British
Red Cross, is in the process of establishing a charitable emergency relief fund for
UK victims of terrorism abroad. £1 million has been pledged to this fund to provide
immediate and short-
