High Court agrees to hear arguments in BI test case

first_imgHigh Court agrees to hear arguments in BI test case The Insurance Council of Australia (ICA) today welcomed the High Court’s request to hear oral arguments on the application for special leave to appeal the NSW Court of Appeal’s recent judgment in the first business interruption test case.The insurance industry remains of the view that pandemics were not contemplated for coverage under most business interruption policies and that the Quarantine Act exclusion excludes COVID-19 related claims.The Court today indicated arguments will be heard on a date to be determined in May or June at the earliest.There are other issues concerning the interpretation of business interruption policies that also need to be resolved to determine whether policyholders will ultimately be covered, which is why a second test case has been commenced in the Federal Court of Australia.The second test case will determine the meaning of policy wordings in relation to the definition of a disease, proximity of an outbreak to a business, and prevention of access to premises due to a government mandate, as well as policies that contain a hybrid of these type of wordings.The Federal Court is expediting the second test case, proposing that the trial take place in the first half of September and any appeal be dealt with the Full Court of the Federal Court in the first week of November.This means that insurers and policyholders will have certainty on most substantial issues in 2021 and reflects the importance of this case to all relevant policyholders and insurers, not just parties to the proceedings.The industry will meet the costs of policyholders in the second test case, as it did in the first test case and will for any appeal.Quote attributable to Andrew Hall, CEO, Insurance Council of Australia:Today’s decision is a welcome next step in this important process and the insurance industry looks forward to presenting what we believe is a compelling case based on a solid legal framework.Given this issue relates to a policy exclusion for which insurers have not been collecting premiums, seeking reinsurance or collecting reserves, there is a strong public interest benefit in the High Court hearing oral arguments.Once final rulings have been obtained from the courts, insurers are committed to applying the relevant principles in an efficient, transparent, and consistent way when assessing claims. /Public Release. This material comes from the originating organization and may be of a point-in-time nature, edited for clarity, style and length. View in full here. Why?Well, unlike many news organisations, we have no sponsors, no corporate or ideological interests. We don’t put up a paywall – we believe in free access to information of public interest. Media ownership in Australia is one of the most concentrated in the world (Learn more). Since the trend of consolidation is and has historically been upward, fewer and fewer individuals or organizations control increasing shares of the mass media in our country. According to independent assessment, about 98% of the media sector is held by three conglomerates. This tendency is not only totally unacceptable, but also to a degree frightening). Learn more hereWe endeavour to provide the community with real-time access to true unfiltered news firsthand from primary sources. It is a bumpy road with all sorties of difficulties. We can only achieve this goal together. Our website is open to any citizen journalists and organizations who want to contribute, publish high-quality insights or send media releases to improve public access to impartial information. You and we have the right to know, learn, read, hear what and how we deem appropriate.Your support is greatly appreciated. All donations are kept completely private and confidential.Thank you in advance!Tags:Australia, business, covid-19, Federal, federal court, Government, High Court, industry, insurance, Insurance Council of Australia, interruption, NSW, Outbreak, prevention, public interest, quarantinelast_img read more