The Insurance Council of Australia (ICA) has urged small businesses to submit a claim against their business interruption (BI) cover through their insurance broker in response to the High Court’s decision not to allow an application to appeal the NSW Court of Appeal’s decision in November 2020 that insurers could not rely on exclusion wordings citing the Quarantine Act 1908 (Cth) and subsequent amendments to reject claims for disruptions related to COVID-19.

 

ICA ADVISES BUSINESSES TO PREPARE BI CLAIMS

The finalisation of many claims depends on the outcome of a second test case in September 2021 that seeks to determine the meaning of policy wordings around disease, COVID-19 outbreak proximity, the impact of government mandates, and other policy wording matters. The ICA is encouraging small businesses to start the process of lodging a claim where they believe their situation makes them eligible for a payout.

ICA CEO, Andrew Hall, was quoted saying, “lodging a claim in this matter can be complex and requires gathering evidence – that’s why policyholders should start that process now”.

By lodging a claim now, it means that once that outcome is known on the second test case, a resolution can take place quickly, providing clarity for policyholders.

 

WITH YOU ALL THE WAY

We will keep you updated on developments arising from the second test case, which is expected to be heard in September 2021.

If you have any questions, or you believe you may have a claim, please contact your broker.

Share this article

Suggested Searches

  • Melbourne Office
  • Financial Service
  • Quote
  • Insurance Services
  • Trade Credit Insurance
  • Strata
  • Claims
  • Real Estate

Contact Us

Contact Information

  • Suite 8.01, Level 8, The Gardens North Tower, Mid Valley City (Lingkaran Syed Putra) 59200 Kuala Lumpur
Honan