A number of major insurers and reinsurers, including Swiss Re, IAG and Chubb, are seeking to challenge the verdict in Australia’s pandemic test case in the country’s High Court.

Those insurers and others filed papers for an appeal on Monday, The Australian reports, as did two insured companies involved in the test case.

The previous judgment issued by the Full Court of the Federal Court of Australia on February 21, 2022 substantially upheld insurers’ arguments, concluding that in most cases insurers are not liable to indemnify policyholders.

However, it ruled that some companies could make valid claims about pandemic-related losses on certain limited policies, provided the cause of the losses could be identified.

IAG has been reported to be appealing a specific decision regarding its client Meridian Travel, after the court determined that 90% of the company’s revenue was caused by COVID-related restrictions.

The Insurance Council of Australia (ICA) explained that IAG disputes the consideration of JobKeeper payments when calculating the amount of insurance for the policyholder.

Although the trial judge held that the JobKeeper payments should be taken into account, the Full Court took a different view, and the CIA considers this to be an important issue for policyholders and insurers of the sector as a whole given the number of companies that have participated in the JobKeeper programme.

The option for these appeals by policyholders or insurers was accepted as part of the original decision to seek an outcome from the courts through test cases, although the insurance industry will continue to bear the costs. policyholders as part of the appeals process.

Andrew Hall, CEO of the ICA, commented on the appeals process: “While we understand there is frustration that the case will continue through the courts, we recognize the need for policyholders and insurers to obtain definitive advice from the courts as to the suitability of cases the wording of the interruption policy should be interpreted and applied.”