The Australian Reinsurance Pool Corporation (ARPC) has issued a guidance note to clarify cover in respect of rolling stock.

Rail and tram rolling stock is excluded by the Terrorism Insurance Act 2003, but the ARPC says the Act does, subject to its terms, cover a train, tram or other railway vehicle in the course of manufacture.

However, there is no cover for rolling stock during testing and commissioning on a railway.

“The exclusion in the regulations starts to apply as soon as the train, tram or other railway vehicle is operated or used on a railway,” it says.