Hundreds of thousands of companies in Australia that have suffered losses during pandemic COVID has filed a reimbursement claim loss but party insurance refused to pay.
Now the court’s decision requires insurance to cover the loss.
Many Australian companies already have a type of insurance that can cover losses from trade disruptions, including during the pandemic.
It is estimated that about 250,000 companies have such insurance policies.
The total compensation is estimated at $10 billion or around Rp100 trillion.
However, the insurance industry argues that such policies are not designed to cover business losses due to the COVID pandemic.
Last year the Australian Insurance Council (ICA) even took the case to court to test and clarify that the policies they are selling do not cover the COVID pandemic.
However, the court ruled that the insurer must pay compensation for policyholders whose businesses have lost due to the pandemic.
The insurance industry then appealed to the Australian Supreme Court (MA).
This Friday (25/6/2021), their appeal was rejected.
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