Business interruption test case hearing rescheduled: ICA

The Insurance Council of Australia (ICA) has revealed that the Federal Court of Australia has ordered the second business interruption test case hearing to commence one week later than previously scheduled.

The order to vacate the 30 August 2021 hearing and reschedule to 6 September 2021 – 15 September 2021 was made in light of the difficulties that some policyholders have had in obtaining verified government data and expert evidence concerning the location and prevalence of COVID-19 outbreaks.

ICA, CEO, Andrew Hall encouraged all business interruption policyholders who believe they may have a claim and have not already done so, to lodge a claim and gather and keep all necessary documents in support of it.

He said, “Insurers acknowledge that this extra week gives policyholders more time to obtain verified State Government data and expert evidence for their cases while allowing the hearing to proceed on the basis of the available evidence.”

At the hearing, the court agreed with the proposal of the insurers and policyholders to proceed with the hearing on 6 September 2021 due to the available evidence. However, the policyholders participating in the second test case will have the ability to present certain additional factual and expert evidence relevant to their claims, if it later becomes available.

The second test case consists of nine small business claims from a range of business sectors and locations, lodged with the Australian Financial Complaints Authority (AFCA) as part of its dispute resolution process.

Hall thanked policyholders involved in this second test case for their time and patience in the case process, “Insurance Council members are committed to applying the courts’ rulings in both this and the first test case in an efficient, transparent, and consistent way when determining business interruption claims.”

It is not anticipated that this postponement will impact the timeframe for any appeal, which has been scheduled to be heard by the Full Court of the Federal Court in November 2021.

For more information please visit the ICA website.