ICA Chief Exec issues statement on Court of Appeal BI test case hearing

The New South Wales Court of Appeal has now heard the legal argument in relation to the business interruption test case lodged by the Insurance Council of Australia (ICA), according to Chief Executive Officer Andrew Hall.

The test case consisted of two separate small business claims that were lodged with the Australian Financial Complaints Authority (AFCA) as part of its dispute resolution process.

Hollard and HDI Global Specialty had both offered claims to assist in reaching a better understanding of how the infectious disease exclusions in policy documents respond to the unique circumstances of the COVID-19 pandemic.

“The test case was initiated and fully funded by the ICA to examine the threshold issue of the application of certain infectious diseases exclusions in business interruption policies,” said Hall.

“The industry argued that the intention of pandemic exclusions in commercial property policies that contain business interruption cover is clear.”

This latest test case follows the one recently seen in the UK High Court, where a verdict fell largely in favour for policyholders.