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

Sign in with Google to rate

0 Comments

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

Insurance News

What a Major Quad Bike Fine Means for Farm Risk
What a Major Quad Bike Fine Means for Farm Risk
03 Jul 2026: Paige Estritori
A recent quad bike fatality case in New South Wales has put farm safety, workplace liability and risk management back under close attention. ABC Rural reported on 2 July 2026 that Wumbulgal Agriculture Pty Ltd was fined $555,000 after an 82-year-old worker died in a quad bike accident at Yenda in the Riverina in February 2023. The company was found to have breached work health and safety obligations. - read more
What DVA’s 2027 Allied Health Changes Mean for Provider Risk
What DVA’s 2027 Allied Health Changes Mean for Provider Risk
03 Jul 2026: Paige Estritori
The Department of Veterans’ Affairs has confirmed a significant change to the way allied health care for eligible veterans will be funded from 1 July 2027. The reform combines higher provider fees with the removal of the current treatment cycle and the introduction of a $5,000 annual allied health expenditure threshold for review of clinical effectiveness. - read more
Draft Insurance Code Puts Claims Standards Back in Focus
Draft Insurance Code Puts Claims Standards Back in Focus
03 Jul 2026: Paige Estritori
The Insurance Council of Australia has opened public consultation on a redrafted General Insurance Code of Practice, with feedback invited from 24 June 2026 until 21 July 2026. For fitness professionals, this is more than an insurance-sector process. It is a timely reminder that the value of a policy is tested not only by the premium, but by what happens when a claim, complaint or vulnerable customer situation arises. - read more
APRA’s Cyber Data Shift: What Consultants Should Watch
APRA’s Cyber Data Shift: What Consultants Should Watch
03 Jul 2026: Paige Estritori
APRA’s latest move on insurance data may sound technical, but it has practical implications for Australian consultants reviewing their risk programmes. The regulator has confirmed it will separately publish cyber insurance and management liability data within the National Claims and Policies Database, rather than leaving those lines blended into broader liability categories. - read more
Why Crane and Rigging Risks Are Testing Construction Insurance Programmes
Why Crane and Rigging Risks Are Testing Construction Insurance Programmes
03 Jul 2026: Paige Estritori
A new crane and rigging insurance facility in Australia has put a spotlight on a practical problem that many high-risk contractors already understand: when one job is insured across several policies, a loss can become a dispute about which insurer should respond. - read more
Click for more Insurance News


Life Insurance Articles

Understanding the Role of Life Insurance in Your Estate Plan
Understanding the Role of Life Insurance in Your Estate Plan
Estate planning is a critical process that often goes overlooked, but it's essential for securing the financial future of your loved ones and ensuring your assets are distributed according to your wishes. It involves the careful organization and protection of an individual’s estate to minimize uncertainties and facilitate the smooth transfer of assets after their passing. While it may seem complex, understanding the basics of estate planning is necessary for every Australian adult, regardless of wealth. - read more
Covering the Unexpected: A Guide to Trauma Insurance for Australian Families
Covering the Unexpected: A Guide to Trauma Insurance for Australian Families
Trauma insurance, also known as critical illness insurance, is a type of coverage that provides a lump sum payment in the event that the insured suffers from a critical illness or injury. Unlike health insurance, which covers medical expenses, trauma insurance is designed to provide financial protection by helping to cover the additional costs associated with recovery from a severe illness or injury. - read more
Life Insurance Audit: Regular Check-Ups for Your Policy's Health
Life Insurance Audit: Regular Check-Ups for Your Policy's Health
Life insurance serves as a crucial safety net, guarding your loved ones against the unforeseen. Just as you would take care of your health through regular check-ups, it is equally important to ensure that your life insurance policy remains in sound condition to provide the necessary protection. - read more
Understanding Life Insurance: Coverage Types to Protect Your Loved Ones
Understanding Life Insurance: Coverage Types to Protect Your Loved Ones
The importance of life insurance in financial planning: Life insurance isn’t just a policy; it’s a cornerstone of comprehensive financial planning. By protecting your family’s financial future, life insurance offers peace of mind, knowing that your loved ones will be taken care of in the event of your untimely passing. It’s not solely about leaving behind a legacy, but also ensuring that your family can maintain their standard of living, pay off debts, and cover end-of-life expenses without financial burden. - read more
Understanding Life Insurance: Securing Your Family's Future
Understanding Life Insurance: Securing Your Family's Future
Defining life insurance and its importance: Life insurance is a pivotal financial product designed to protect your loved ones from economic hardship in case of your untimely death. It acts as a safety net, ensuring that your family can maintain their standard of living, cover outstanding debts, and afford future expenses like education and retirement. - read more

Knowledgebase
Income Insurance:
Insures your income in the event of you being unable to work due to sickness or accident.

Quick Links: | Life Insurance Australia | Compare Life Insurance | Best Life Insurance Australia | Life Insurance Quotes | Term Life Insurance | Life Insurance Policies | Affordable Life Insurance | Life Insurance Calculator | Independent Life Insurance Brokers | Life Insurance Benefits | Family Life Insurance
This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.
IMPORTANT: We act solely as an introducer and refer enquiries to licensed third-party brokers, insurers, and lenders. We do not provide financial product advice or credit assistance. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should independently verify the credentials and licensing of any adviser or provider you engage. Visit the ASIC website for further information.