An Australian court has determined that Star Entertainment Group is not entitled to an insurance payout for losses incurred during the Covid-19 pandemic. Star appealed the original decision, which was upheld on appeal.
Star runs casinos in Sydney, Brisbane and the Gold Coast as well as associated hotel, food and retail businesses. It sued Chubb Insurance Australia and other insurers involved in the Star policy, reported the New Daily.
In a federal court in August, Chief Justice James Allsop dismissed Star’s claim for indemnity concluding Covid-19 is not a “catastrophe” according to the terms of its policy. On February 21, the full federal court dismissed Star’s appeal.
Star and five other applicants claimed they were owed indemnity for business interruption losses caused by Covid-19 restrictions, particularly those that limited domestic and international travel in 2020, and orders that closed the various premises.
Star’s policy provided cover up to $4 billion, and the gambling giant cited a section of the policy saying coverage included “loss resulting from or caused by any lawfully constituted authority in connection with or for the purpose of retarding any conflagration or other catastrophe.”
The pandemic fits into the “other catastrophe” category, Star said. But another clause in the policy excluded diseases listed under the Commonwealth’s Biosecurity Act from the policy’s coverage.
Justice Mark Moshinsky said, “Covid-19 is such a disease.”
