Manage business interruption claim definitions (post-pandemic precedent)
BI insurance policies must clearly define pandemic exclusions per Federal Court guidance.
Who must comply
General insurers writing business interruption.
What triggers it
Issuing BI policies.
When due
Continuous.
Evidence required
Policy wording; reinsurance arrangements; claims-handling records.
Max penalty
ASIC + AFCA scrutiny on misleading or unfair claims; class action exposure
Summary
Two BI insurance test cases (HDI Global v Wonkana No 3; Star Entertainment v Chubb) clarified exclusion clauses + insured-peril definitions. Insurers must now have clear, current pandemic exclusions; policyholder cover for COVID-era losses limited.
Enforced by
Source legislation
Industries
Topics
Source: https://asic.gov.au/regulatory-resources/financial-services/insurance-product-claims-handling/. Rules Mate is not a law firm. Always verify against the live regulator source before acting.