The High Court of Australia has agreed to hear oral arguments supporting an insurance industry application to appeal the first business interruption test case ruling.

The NSW Court of Appeal last year found against insurers on whether they could exclude cover using policy wordings citing the Quarantine Act 1908 and subsequent amendments. The Act was replaced by the Biosecurity Act 2015.

The High Court today indicated arguments on the application for special leave to appeal will be heard on a date to be determined in May or June at the earliest.

“Today’s decision is a welcome step in this important process and the insurance industry looks forward to presenting what we believe is a compelling case based on a solid legal framework,” Insurance Council of Australia (ICA) CEO Andrew Hall said.

“Given this issue relates to a policy exclusion for which insurers have not been collecting premiums, seeking reinsurance or collecting reserves, there is a strong public interest benefit in the High Court hearing oral arguments.”

ICA is also pursuing a second test case that will determine the meaning of policy wordings in relation to the definition of a disease, proximity of an outbreak to a business and prevention of access to premises due to a government mandate.

The Federal Court is expediting that case, proposing that the trial take place in the first half of September, with any appeal to be dealt with in the Full Court in the first week of November.

ICA says the timetable means insurers and policyholders “will have certainty on most substantial issues” this year, reflecting the importance of the case to all relevant policyholders and insurers, not just the parties to the proceedings.

“Once final rulings have been obtained from the courts, insurers are committed to applying the relevant principles in an efficient, transparent and consistent way when assessing claims,” Mr Hall said.