The Insurance Council of Australia (ICA) are due to launch a test case in order to examine the application of certain infectious diseases exclusions in business interruption policies.
The case will be heard by the NSW Court of Appeal where the hearing is due to start on Friday October 2.
ICA CEO Andrew Hall said: “ICA legal representatives and the plaintiffs’ solicitors provided a joint motion that the combined test case be moved to the NSW Court of Appeal and expedited.
“After reviewing the pleadings and the joint motion, Justice Hammerschlag determined the case was of sufficient importance that it should be moved. The ICA is pleased the case will be heard by the Court of Appeal on an expedited basis.”
“The pandemic and resulting uncertainty have had a devastating impact on Australia,” Hall added, “so we are pleased the test case hearing is progressing as quickly as possible, and a judgment can be delivered that provides greater clarity to customers, insurers and regulators in the treatment of pandemic-related claims.
“In most cases, pandemic exclusions are a threshold issue in Australia given that most insurers have never contemplated coverage for pandemics, have not priced the risk or collected premiums for this risk. Globally, insurers generally regard pandemics as uninsurable risks.”
