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Suncorp gets a $211m insurance reprieve, puts it aside for a rainy day

Business

A Federal Court ruling has freed Suncorp and other insurers of hundreds of millions of dollars in payouts to businesses affected by Covid.

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But Suncorp will maintain the $211 million it provisioned for in case an appeal goes against it.

In its second test case on the issue, the court found that the insuring clauses were not triggered in eight of the nine matters in the test case.

Suncorp said that meant the business interruption policies did not respond to claims relating to Covid.

It also found that Government subsidies such as JobKeeper would be taken into account when assessing losses.

“Given the complex nature of the matter and the need to provide clarity as quickly as possible, the Federal Court anticipated and has planned for this decision to be appealed,” Suncorp said.

A date has been set aside in November.

“While a positive judgement for insurers, Suncorp’s provision for potential business interruption claims relating to Covid1-9 of $211 million remains unchanged pending any appeal process,” the company said.

It said customers should still lodge any Covid related business interruption claims they may have.

IAG made a similar statement.

 

 

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