Federal Court Dismisses Class Actions for COVID Business Interruption Claims

2

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.

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
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Clear

Surge in Mental Health Claims Reshapes Australia's Insurance Landscape

02 Dec 2025: Paige Estritori

Australia's insurance industry is experiencing a significant shift as mental health conditions have become the leading cause of total and permanent disability (TPD) claims. Recent data from the Council of Australian Life Insurers (CALI) indicates that mental health issues now account for nearly one-third of all TPD claims, marking a substantial change in the industry's claim patterns. - read more

Australian Insurance Premiums See Notable Decrease

02 Dec 2025: Paige Estritori

Recent data indicates a notable decline in life and income protection insurance premiums across Australia, providing consumers with more affordable coverage options. According to the latest Direct Life Insurance Report from Rainmaker Information, direct life premiums have decreased by 7% since 2024. Similarly, direct income protection premiums have seen significant reductions, with average premiums for waiting periods of 30 days and 90 days decreasing by 12% and 13%, respectively. - read more

TAL's Health Sense Plus Now Covers Income Protection Policies

02 Dec 2025: Paige Estritori

In a significant development for policyholders, TAL has expanded its Health Sense Plus program to encompass income protection (IP) policies. This initiative, effective from August 8, 2025, aims to incentivise proactive health management by offering premium discounts to clients who engage in preventative health checks. - read more

Decline in Life and Income Protection Insurance Premiums Benefits Australians

24 Nov 2025: Paige Estritori

Recent data indicates a notable decline in life and income protection insurance premiums across Australia, providing consumers with more affordable coverage options. According to the latest Direct Life Insurance Report from Rainmaker Information, direct life premiums have decreased by 7% since 2024. Similarly, direct income protection premiums have seen significant reductions, with average premiums for waiting periods of 30 days and 90 days decreasing by 12% and 13%, respectively. - read more

TAL's Health Sense Plus Now Covers Income Protection Policies

24 Nov 2025: Paige Estritori

In a significant development for policyholders, TAL has expanded its Health Sense Plus program to encompass income protection (IP) policies. This initiative, effective from August 8, 2025, aims to incentivise proactive health management by offering premium discounts to clients who engage in preventative health checks. - read more

AFCA Criticises TAL for Unfair Termination of Income Protection Benefits

16 Nov 2025: Paige Estritori

The Australian Financial Complaints Authority (AFCA) has recently ruled against TAL, a prominent life insurer, for terminating a policyholder's income protection benefits without prior notice. This decision underscores the critical importance of procedural fairness in the management of insurance claims. - read more

Click for more Insurance News