A terrorism bill has been introduced into the US Senate by a group of senators from the Democratic Party, and Majority Leader Tom Daschle has promised swift passage of the legislation.

It’s understood the bill, introduced in draft form on Friday, will allow the Federal Government to act as a backstop to private insurers in the event of another devastating terrorist attack. The insurers would cover the losses up to an agreed point, and the Government would cover 80% of losses above the first level of caps up to $US10 billion, and 90% of losses above that.

The American Insurance Association said the bill is “encouraging”. But so far no Republicans have lined up to support it.

The Senate has debated the need for such legislation for more than six months, but has been held up by argument over such aspects as tort reform. Don’t expect an early resolution.