If you get a “Class Action Notice” from the Federal Court regarding the COVID-19 business interruption insurance class action against The Hollard Insurance Company or Insurance Australia Limited (IAL), this information sheet tells you what it means and your rights.
Insurance Australia Limited operates under brand names including CGU Insurance, RACV and NRMA.
If you are insured under a business interruption policy with any of the following insurers, you may be impacted by the class action.
- The Hollard Insurance Company;
- Hollard Commercial Insurance;
- Calibre Insurance;
- CGU Insurance;
- RACV;
Why have I received a “Class Action Notice” from the Federal Court?
The Notice tells you that the Hollard and IAL (CGU Insurance, RACV and NRMA) COVID-19 business interruption insurance class actions have been “declassed”.
This means that the cases will not proceed as a class action.
You still have options to claim on your business interruption insurance
However, that does NOT mean the end of your rights, and you can still:
- make a claim with Hollard or IAL;
- lodge a complaint with Holland or IAL if your claim is rejected;
- lodge a complaint with the ombudsman, AFCA; or
- sue the insurer in court.
In fact, we have successfully claimed COVID-19 losses against Holland and IAL for dozens of businesses resulting in millions of dollars of insurance payouts.
Opt-out Notice
The Notice also gives you the right to opt out of the Court orders which bind the insurer and class members to certain questions which arose in the class action, but were not disputed by the insurers. For example, whether COVID-19 is an “infectious or contagious disease” and what is an “outbreak” of COVID-19?
You can either:
- do nothing - you will be bound by the answers to the questions in the annexure to the Notice;
- opt out by following the procedure spelt out in the Notice - the answers to the questions won’t be binding on you.
The answers to the questions may well be helpful to your claim and you should get legal advice about whether to opt out or not.
What if I didn’t get a Class Action Notice?
If you did not receive a Notice, you may still have rights against Hollard or IAL for COVID-19 business interruption.
There were 2 other class actions (against QBE and Lloyd’s) which were also de-classed, but these are currently being appealed. If you had business interruption insurance with one of them or another insurer, you should get legal advice about your rights.
FREE legal advice
It’s really important to get legal advice about the Notice and what you should do.
Berrill & Watson Lawyers are experts in COVID-19 Business Interruption Insurance and we will give you FREE legal advice about the Notice, what you should do and also check your policy and answer any insurance questions.
We will also do any claims or appeals for you “no win, no fee”. Most policies include claims preparation cover which can mean the legal fees are paid by the insurer.
FAQ’s
Do I have a claim?
Probably yes.
How long will it take?
Claims take 2-4 months on average. AFCA/court cases take longer – 12 to 15 months on average.
How much can I claim?
Depends on your COVID-related losses in income or profit. We have had successful claims for up to $1 million.
What are the legal fees?
- Nil for advice about the Notice and to check your cover
- No win, no fee for claims/appeals as per a signed legal agreement.
Are there time limits?
Yes.
- For commencing proceedings in court, you have 6 years from when your loss first started due to COVID-19; and
- for AFCA complaints, you have the earlier of 2 years from the date the insurer provides a final response to your internal complaint and 6 years from when your loss first started due to COVID-19.
There is still time to claim/appeal, but get advice now.
Will a claim mean I won’t get ongoing insurance cover?
We have NOT seen any cases where a COVID-19 business insurance claim has affected getting cover.
Contacting Berrill & Watson
📞 Melbourne: 03 9448 8048
📞 Brisbane: 07 3013 4300
📞 Anywhere else in Australia: 03 9448 8048
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We are Australia's best-value superannuation/insurance law firm. Other law firms charge nearly double (& sometimes more than double) what we charge. So, if you get a quote from them, or have a cost agreement, ask us what we will charge you.