Life Insurance Online :: News
SHARE

Share this news item!

Federal Court Dismisses Class Actions for COVID Business Interruption Claims

Federal Court Dismisses Class Actions for COVID Business Interruption Claims

Federal Court Dismisses Class Actions for COVID Business Interruption Claims?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The Federal Court has determined that business interruption claims related to COVID-19, involving four insurers, should not proceed as class actions.
This ruling obliges individual policyholders to pursue their cases separately if they wish to proceed.

Justice Michael Lee announced on Friday that proceedings are adjourned pending the issuance of "declassing orders," following arguments from insurers against group actions. Policyholders who had hoped to be part of the class actions will receive notices explaining their rights and options for individual claims.

The legal firms involved, including Gordon Legal and Slater & Gordon, had initiated cases against multiple insurers. Specifically, Gordon Legal filed on behalf of Cody Gemtec Retail t/as the National Opal Collection against Syndicate 2003 at Lloyd’s, and Strand Fitness and others against QBE. Slater & Gordon filed cases for CMC Hospitality against Insurance Australia, and Vicki Field Swim School against Hollard.

An IAG spokesperson welcomed the decision, urging customers with potential COVID-19-related business interruption claims to file those claims individually to facilitate efficient assessment through their standard process. The company also highlighted that a further case management hearing is anticipated and the appeal period remains active, promising updates "at the appropriate time."

James Naughton, a partner at Gordon Legal, told insuranceNEWS.com.au that individuals are encouraged to contact the firm to discuss their options for submitting individual claims against their insurers.

The court had previously ordered that policyholders be notified to register their interest in the proposed class actions, which garnered thousands of responses by a set deadline earlier this year.

  1. Cody Gemtec Retail t/as the National Opal Collection vs. Syndicate 2003 at Lloyd's
  2. Strand Fitness vs. QBE
  3. CMC Hospitality vs. Insurance Australia
  4. Vicki Field Swim School vs. Hollard

John Berrill, the principal of Berrill and Watson Lawyers, clarified that Friday's ruling addresses only the procedural aspect of how claims should be resolved—individual vs. class actions—without commenting on the validity of the claims. He emphasized the importance of policyholders understanding their rights and considering their options promptly since claims linked to the 2020 pandemic lockdowns are approaching the six-year statute of limitations for legal action.

Published:Tuesday, 24th Sep 2024
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Insurance News

Isuzu Recall Puts Software Risk on the Insurance Radar
Isuzu Recall Puts Software Risk on the Insurance Radar
05 Nov 2026: Paige Estritori
A fresh Australian Government vehicle recall for selected Isuzu MY25 trucks is a timely reminder that modern heavy vehicle risk is no longer limited to tyres, brakes, steering, driver behaviour or road conditions. Software faults can also create safety exposures that matter for fleet operations, incident investigations and insurance conversations. - read more
Delayed Insurance Inquiry Keeps Tradie Cover Issues on the Table
Delayed Insurance Inquiry Keeps Tradie Cover Issues on the Table
05 Nov 2026: Paige Estritori
A federal parliamentary inquiry into small business insurance has pushed its reporting timetable into early 2027, extending the wait for recommendations that may shape future debate on affordability, availability and regulation. For Australian tradespeople, the delay matters because the inquiry is examining the commercial insurance lines many small operators rely on daily, including public liability, professional indemnity, cyber risk and business interruption cover. - read more
Why Claims Communication Is Back in the Spotlight
Why Claims Communication Is Back in the Spotlight
05 Nov 2026: Paige Estritori
A new Life Code Compliance Committee inquiry has put fresh attention on the way life insurers manage longer-running income protection insurance and total and permanent disability claims, finding that clearer communication and earlier information requests could reduce avoidable stress for people waiting on claim decisions. - read more
New Isuzu Truck Recall Highlights a Claims Evidence Issue
New Isuzu Truck Recall Highlights a Claims Evidence Issue
05 Nov 2026: Paige Estritori
A fresh safety recall affecting 3,710 Isuzu MY25 trucks is a timely reminder that modern truck insurance risk is not only about driver behaviour, road conditions or workshop servicing. Software, trailer systems and electronic braking signals can all become part of the evidence trail if an incident occurs. - read more
Mental Health Cover Debate Now Matters for Business Protection
Mental Health Cover Debate Now Matters for Business Protection
05 Nov 2026: Paige Estritori
Australia’s life insurance sector is moving into a detailed debate over how mental health conditions should be treated in disability-style cover, and the outcome could matter for business owners who rely on insurance to protect income, debt and operational continuity. - read more


Life Insurance Articles

Strategies to Use Life Insurance in Funding Shareholder Agreements
Strategies to Use Life Insurance in Funding Shareholder Agreements
Shareholder agreements lay the cornerstone for stable business relationships and continuity in Australia. Acting as a contract among business owners, these agreements set forth the expectations, rights, and obligations of all parties involved. They are particularly vital in delineating clear paths for dispute resolution, succession planning, and the transfer of ownership shares under varied circumstances, including the untimely death or departure of a shareholder. - read more
How Life Insurance and Estate Planning Work Together for Your Benefit
How Life Insurance and Estate Planning Work Together for Your Benefit
For many Australian families, the concept of estate planning might evoke imagery of vast wealth and complex legal documents, reserved for the very affluent. However, this misconception overshadows the universal importance of having an estate plan, which at its core, is about ensuring your loved ones are cared for and your wishes are honored upon your passing—even if you don't consider yourself wealthy. - read more
What Does Life Insurance Cover in Australia?
What Does Life Insurance Cover in Australia?
Life insurance in Australia commonly pays a lump sum if the insured person dies or is diagnosed with a terminal illness, but policy terms, exclusions and related cover options can vary significantly. - read more
How Life Insurance Premiums Are Calculated in Australia
How Life Insurance Premiums Are Calculated in Australia
Life insurance premiums in Australia are shaped by a mix of personal, health, lifestyle and policy choices. This guide explains the main cost factors, how underwriting works, and why quotes can vary between insurers. - read more
Why Life Insurance Should Be a Priority for Every Married Couple
Why Life Insurance Should Be a Priority for Every Married Couple
When it comes to financial planning, life insurance often takes a backseat. Many married couples in Australia overlook its importance, thinking that it's not immediately necessary or that they can simply put it off for later. However, life insurance should be regarded as a cornerstone of a solid financial strategy. - read more

Knowledgebase
Actuary:
A professional who analyzes the financial costs of risk and uncertainty using mathematics, statistics, and financial theory.