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
Related obligations
- CWLTHComply with claims handling + settling as a financial service (s 766A)From 1 January 2022, insurance claims handling is a financial service requiring AFSL authorisation.
- CWLTHComply with Private Health Insurance Act 2007 + APRA rulesPrivate health insurers regulated by APRA + PHIO; community rating, complaints + claims rules apply.
- CWLTHComply with General Insurance Code of Practice (ICA)ICA Code binds member insurers on conduct + claims + complaints.
- CWLTHGeneral Insurance Code of Practice 2020ICA member insurers bound by service standards + claims handling timeframes.
- CWLTHLife Insurance Code of Practice 2.0FSC member life insurers bound by Code 2.0 (commenced 1 July 2023).
- CWLTHPHI Prudential Standards (APRA)Private health insurers must meet capital + governance standards.
Frequently asked questions
- Who must comply with Manage business interruption claim definitions (post-pandemic precedent)?
- General insurers writing business interruption.
- What triggers Manage business interruption claim definitions (post-pandemic precedent)?
- Issuing BI policies.
- When is Manage business interruption claim definitions (post-pandemic precedent) due?
- Continuous.
- What is the maximum penalty for Manage business interruption claim definitions (post-pandemic precedent)?
- ASIC + AFCA scrutiny on misleading or unfair claims; class action exposure
- What evidence is required for Manage business interruption claim definitions (post-pandemic precedent)?
- Policy wording; reinsurance arrangements; claims-handling records.
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.