The Federal Court will next week hold a preliminary hearing for the Insurance Council of Australia’s (ICA) second business interruption test case on wordings that underwriters say exclude claims related to COVID-19.

The first case management hearing for the proceedings filed on February 24 is scheduled before Chief Justice James Allsop in Sydney next Tuesday (March 16).

Court documents obtained by insuranceNEWS.com.au show the nine claimants include a dry cleaners, travel agency, stage clothing and costume store, gym, dental practice, property landlord, beauty salon and bar and restaurant businesses.

The cases represent a geographical spread with businesses located in Townsville, Brisbane, Sydney, Wollongong, Melbourne and Adelaide, involve insurers Allianz, Chubb, IAG, Guild and Swiss Re and a range of wordings.

Issues to be examined include policies that say disease extensions should not apply as a premises was not closed or evacuated in whole or in part as a result of the outbreak of a notifiable infectious, or contagious disease occurring with a 20 km radius.

Claims under Prevention of Access clauses, which in some cases cite threat of damage to property or persons with a 50-kilometre radius, will also be tested.

The Swiss Re policy cites exclusions for listed human diseases under the Biosecurity Act and in various clauses includes a 5km limit.

Insurers say in the filings that if claims are found to be valid, any payment should be adjusted to reflect uninsured circumstances affecting the business arising from the COVID-19 pandemic.

Some policies cite the repealed Quarantine Act 1908, replaced by the Biosecurity Act 2015, but this test case will focus on other grounds for exclusion that present hurdles to claims being paid.

Disputes over references to the Quarantine Act “and subsequent amendments” have been looked at in a separate test case, which went in favour of policyholders in the NSW Court of Appeal. A special leave to appeal application is still before the High Court.

The nine claims in the second test case are:

Allianz Australia Insurance Ltd. v The Stage Shop Pty Ltd (Formerly Visintin Pty Ltd)

Allianz Australia Insurance Ltd v Mayberg Pty Ltd

Chubb Insurance Australia Ltd v Market Foods Pty Ltd

Chubb Insurance Australia Ltd v Phillip Waldeck

Guild Insurance Ltd v Dr Jason Michael t/a Illawarra Paediatric Dentistry

Guild Insurance Ltd v Gym Franchises Australia Pty Ltd

Insurance Australia Ltd v The Taphouse Townsville Pty Ltd

Insurance Australia Ltd v Meridian Travel (Vic) Pty Ltd

Swiss Re International SE v LCA Marrickville Pty Ltd