Business interruption insurance pandemic update from ICA

The Insurance Council of Australia (ICA) has revealed that it is in discussions with insurers, the Australian Financial Complaints Authority (AFCA) and other stakeholders to consider a further test case that explores outstanding policy matters, including proximity and prevention of access, relating to the pandemic and business interruption insurance.

The ICA has indicated that industry’s intention is that it would again meet the costs of both the policyholders and the insurers in any legal process, in the same fashion as the first test case regarding the Quarantine Act.

The ICA has advised that the insurance industry seeks to progress a court resolution of these matters quickly, and regardless of any decision around an appeal on the first test case.

The ICA has intimated that it will continue to work with all stakeholders and government to provide clarity for all parties and the industry. The industry body will provide an update on these matters as soon as they are settled in coming weeks.