Losses arising from the bombing of Spanish commuter trains in Madrid last week – which killed nearly 200 people and injured another 1400 – will probably be covered by the country’s state-funded catastrophe reinsurance pool.

Media reports from Europe says the Consorcio de Compensacion – which works in a similar way to Australia’s Terrorism Reinsurance Pool – should cover the attacks. Unlike the Australian scheme, the Spanish scheme provides an unlimited guarantee for losses stemming from terror attacks. The train company involved is owned by the Government.

The Spanish pool imposes a deductable only on business interruption losses, which is set at 3% of a loss.