Business interruption insurance – can I make a COVID-19 claim?
We understand the concerns of customers who may be waiting for a determination of their claim or resolution of a dispute, as the Insurance Council of Australia sought clarity on behalf of the insurance industry on what circumstances would trigger a claim to be paid under a business interruption cover due to COVID-19.
In June 2021 the High Court upheld the decision of the NSW Court of Appeal that found that insurers cannot rely on Pandemic Exclusions in Business Interruption policies which reference the repealed Quarantine Act 1908 (cth).
On 8 October 2021 the Federal Court handed down its decision on the Second Business Interruption Test Case, finding that, in 9 out of the 10 test cases, insurers were not liable to indemnify customers for their claim under the respective business interruption covers as none of the relevant clauses were triggered.
The decision is subject to appeal before the Full Federal Court and has been scheduled for hearing 8 November to 16 November 2021. We will need to await the outcome of the appeals in the Second BI Test Case before finalising Allianz’s position on claims.
Appeals in 5 of the 10 cases in the second test case have been lodged and are provisionally listed before the Full Federal Court between 8– 16 November 2021 with judgment anticipated to be given in December 2021.
No appeal was lodged in the 2 Allianz cases which formed part of the second test case. Despite this, Allianz, like the rest of the insurance industry is awaiting a final outcome of the appeals.
Lodging a Business Interruption Claim
If you believe your circumstances entitle you to coverage under your business interruption cover, please consider lodging a claim. You can call our claims line on 1300 300 573 or visit allianz.com.au for further information.
To assist in the assessment of the claim, we have prepared a list of things for you to consider when completing your claim.
Each claim will be reviewed subject to your business interruption insurance cover and there must be a loss that is covered by the policy before a claim can be paid.
If the claim gives rise to one of the issues heard in the second test case, we may be unable to finalise the claim at that time but will do so as soon as a final determination has been made.
If the loss does not fall within the scope of cover then the claim will not be paid.
For details about Business Interruption and the BI test cases please visit Business Interruption test cases - Insurance Council of Australia.
If you have any further questions, please call us on 13 10 13.