A business card bearing the name of Sydney siege victim, Lindt Cafe store manager Tori Johnson, is pictured among photos of him wearing a red shirt at an impromptu memorial in Martin Place
A business card bearing the name of Sydney siege victim, Lindt Cafe store manager Tori Johnson, is pictured among photos of him wearing a red shirt at an impromptu memorial in Martin Place December 17, 2014. Tough new national security laws failed to prevent a deadly hostage crisis in the heart of Sydney this week, Australian Prime Minister Tony Abbott said on Wednesday, raising questions about the usefulness of such measures. REUTERS/Jason Reed

Australia has officially declared the Sydney Siege to be a "terrorist incident." The declaration has been made so that affected businesses are able to get insurance pay-outs.

The federal government's declaration comes through Treasurer Joe Hockey who has said that the official confirmation is going to prevent insurance companies from refusing claims to affected businesses. Hockey has issued a statement on Thursday that says that the declaration has been made "for the purposes of the Terrorism Insurance Act." The Tony Abbott government wants to make sure that no business, which has suffered damage due to the terror act, is denied insurance claim. The declaration has been made, according to Hockey, after consultation with the Insurance Council of Australia, stakeholders and the attorney-general. The treasurer says that the Australian government is doing everything possible to disrupt terrorist activities and keep the country safe.

He says that insurance companies will not be able to refuse even if policies do not include losses from acts of terrorism. "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," ABC News quotes Hockey, "Advice from the Australian Reinsurance Pool Corporation (ARPC) indicates the three insurers that have registered claims to date have stated they will not apply terrorism exclusion clauses." The treasurer has also said that he is pleased to know that the insurance companies are acting responsibly at difficult time. According to Hockey, the businesses affected by the Sydney Siege have made claims which total around $600,000.

The review into the Sydney Siege is conducted by NSW governments and the commonwealth. The review will determine what lessons can be learned from the Dec 15 events, leading up to and surrounding the siege. Man Haron Monis took control of Martin Place's Lindt Cafe on Dec 15 and held a number of people hostage for 16 hours. The siege eventually took the lives of barrister Katrina Dawson and Tori Johnson, the manager of the café. An inquest into the deaths of the two victims is going to open for public hearings on Jan 29.

Contact the writer: s.mukhopadhyay@IBTimes.com.au