The Federal Court has ordered QBE Insurance to pay $2.16 million and $525,531 in interest for losses related to material damage at a steel mill in Victoria.

Justice Jonathan Beach issued the payment order last week, according to a copy of the ruling seen by insuranceNEWS.com.au.

QBE Insurance has so far paid $3.8 million for business interruption losses covered by an industrial special risk insurance policy, and $1 million for material property damage.

But the applicants – Australian Pipe & Tube, and Leaning Back in its capacity as trustee of the Leaning Back Unit Trust – are seeking additional payments.

“This case concerns the quantification of a loss-of-profits claim made by assignees of an insured’s claim against the insurer,” Justice Beach says in his ruling, made last month. 

“The context for the claims that have been made is material damage occurring in 2010 to a steel mill then owned by [Independent Tube Mills] in Victoria.”

A QBE spokesman has confirmed a court ruling was made, but declined to provide details.