Australian Business Shield
AMIR has recently been granted a licence variation with a new authorisation to issue, and provide general advice on, miscellaneous financial facility - miscellaneous risk products limited to business risk products to retail and wholesale clients.
This will allow AMIR to offer discretionary products in respect of business risks, including (but not limited to) risks relating to physical damage, business interruption, public liability and professional indemnity.
There is no limit on the size of the risk for which AMIR may offer discretionary risk products.
AMIR proposes to offer discretionary cover under the registered business name 'Australian Business Shield'.
What is a discretionary risk product?
A discretionary risk product is a product which allows the product holder (the client) to make a claim for assistance in the event that certain events happen and they suffer certain loss. The client has the right to have their claim for assistance heard, and the issuer (in this case, AMIR) will (if the claim for assistance is within the terms and conditions of the product) make a decision whether to excercise its discretion for the benefit of the client or not. If the discretion is exercised, AMIR will pay the client an amount equal to all or part of the financial loss suffered by the client up to the maximum limit of indemnity. The product issuer generally undertakes to exercise its discretion in good faith.