The High Court’s decision in June 2021 means insurers cannot rely on references to the Quarantine Act 1908 (Cth) to deny liability in policies written in the same terms as the policies considered in the first test case.
However, 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 rele-vant 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.
Allianz will respond to affected customers who have lodged business interruption claims on a case-by case basis, however the vast majority of claims may not be able to be finalised until the outcome of the appeal in the second test case is known.