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BI test case directions hearing delayed

The COVID-19 business interruption test case has been delayed after a directions hearing listed at the NSW Supreme Court today did not go ahead.

insuranceNEWS.com.au understands the hearing was postponed for at least a week, and that the case could be sent straight to the NSW Court of Appeal.

The matter, HDI Global Specialty SE v Wonkana No 3 Pty Limited trading as Austin Tourist Park, was listed today before Justice David Hammerschlag.

As insuranceNEWS.com.au has reported, the Insurance Council of Australia and Australian Financial Complaints Authority (AFCA) agreed to launch the case to resolve uncertainty about some outdated wording in pandemic exclusions.

Some Australian insurers’ policies still include exclusions referring to the repealed Quarantine Act 1908, which was replaced by the Biosecurity Act 2015. As a result, some claimants hope the exclusions will not apply to COVID-19 claims.

The test case consists of two separate small business claims that were lodged with AFCA as part of its dispute resolution process. The claims were with HDI Global Specialty and Hollard.

AFCA will use the test case outcomes to determine complaints related to business interruption claims and infectious disease exclusions.