The Federal Court will hear the Insurance Council of Australia (ICA) second test case on business interruption cover, along with a related QBE matter, in a hearing scheduled for August 30 to September 8.

Insurers involved in the ICA case are Allianz Australia, Chubb, Guild Insurance, IAG and Swiss Re, with nine separate insured claims to be considered. The court has agreed at the same time to hear a QBE matter focusing on Victorian property law implications for wordings citing the Quarantine Act.

The number of days set aside compares with a one-day hearing for the first test case, which centred on the single issue of whether a reference to the Quarantine Act and subsequent amendment should be taken as including the replacement Biosecurity Act. The courts ruled in favour of insureds.

“In contrast to the first test case, the second test case concerns multiple issues as to the meaning of a range of policy wordings such as the definition, COVID outbreak proximity and the impact of government mandates,” an ICA spokeswoman told insuranceNEWS.com.au.

Chief Justice James Allsop confirmed at a preliminary hearing last week that the Full Court of the Federal Court is intended to hear any appeal in November, with that timetable allowing for final determinations to be made by December.

Insurers will be separately represented in the Federal Court proceedings.

IAG will be represented by Allens and Ian Jackman SC, Perry Herzfeld SC and Jerome Entwisle of counsel.

Allianz and Guild are represented by Clyde & Co and Edward Muston SC and Justin Simpkins of counsel.

Chubb is represented by Wotton + Kearney with Todd Markell of counsel.

SwissRe is represented by DLA Piper and David L Williams SC and Ross Glover of counsel.

Eight of the insured parties are represented by Clayton Utz and Steven Finch SC, Derek Wong and Naomi Wootton of counsel.

The other insured is represented by Corney & Lind and Anthony Morris QC, Vincent Brennan and Ben McGlade of counsel.