“Those proceedings allege that QIA wrongfully denied cover to certain policyholders during the COVID 19 pandemic for losses arising from business interruption,” noted QBE. “The allegations will be defended.
“The issues raised in these proceedings appear to be substantially similar to those currently before the Australian courts in the second industry test case and QIA’s own Federal Court proceeding against Educational World Travel in liquidation and its liquidator.”
Backed by litigation funder Omni Bridgeway, the new class action is being funded as a registered management investment scheme called “The QBE BII Claim Litigation Funding Scheme (ARSN 650 744 415),” according to class action law firm Gordon Legal which jointly runs the case with specialist insurance law firm Berrill & Watson.
The above, said Gordon Legal, is in accordance with new funded class action regulations introduced by the Australian government last year. The open class action in the Federal Court is on behalf of businesses such as Strand Fitness Pty Ltd.
Meanwhile QBE added: “QIA is committed to applying the rulings of the courts in the industry test cases when assessing claims. QBE is satisfied that its reserving in respect of business interruption claims remains robust.”
