As a result of the current pandemic, a lot of businesses suffered financial losses.  When they claimed under their general insurance policies their claim for business interruption losses were denied on the basis that the COVID 19 pandemic was not covered by their policy.

REQUIRED:

1) Discuss why the insurance companies have taken this view. 

2) Were they justified by law in adopting this approach? 

3) What are the legal issues about this issue? 

4) What rights do the insured have? 

5) Do you think the Federal Government needs to be concerned about this issue? 

6) With changes as these, do you think the Insurance industry in Australia is heading towards a hardening market or a soft market?

Answer rating: 100% (QA)

Insurance companies have taken the view that business interruption losses arising from the COVID19 pandemic are not covered by their policies for a va... View the full answer