iscrimination is, apparently, legitimate provided at fault belongs to the industry. Marios Hadjianastasis passed his driving licence last year and recently proceeded a cyber look for the most affordable insurance.
Elephant offered the most promising deal at 506 for that year’s cover. However, Hadjianastasis had forgotten to amend the box specifying an applicant’s nationality that has been set automatically to “born inside UK” . He appeared in Cyprus, but has lived in great britain since 1998. Whilst specified his native country on websites the premium soared to 614.
“Is this legal?” he wonders. “How can the spot of birth often be a criterion for the insurance premium after i took driving sessions and qualified as the driver in the united kingdom? DVLA do not distinguish between British and foreign drivers when issuing licences, enjoy can insurance firms get away with this discrimination?” Easily, this reveals, after they can backup their prejudices with hard statistics.
The Financial Services Authority, which regulates the insurance policy industry, says firms must treat customers fairly, but they’re allowed to study the theoretical risk posed by different groups of people before setting premiums. They should, however, be ready to justify their reasoning should a customer takes problem with a call.
Elephant explains that this bases its calculations on statistics of past claims from customers. “Our experience shows that policyholders which have not invariably been a UK resident possess a considerably worse claims experience, hence a better premium for such customers,” says a spokeswoman. “We do therefore use UK residency being a pricing factor. And we don’t ask any inquiries about nationality or race, rather if someone has lived in great britan for the of their total life, just in case not how long.”
Elephant insists that the extra 108 required of Hadjianastasis can be an accurate reflection on the increased risk caused from foreign-born drivers which makes similar distinctions between British-born applicants from different postcodes, occupations or age brackets.
However, if Hadjianastasis felt equal to a spell in a courtroom he could test his case underneath the Race Relations Act 1976. Section 20 (1) will make it unlawful for a supplier to won’t give a customer with the exact same terms as another person in the public due to their person’s nationality or national origin. Any person who feels they own been discriminated against can contact the Equality and Human Rights Commission for information on 0845 604 6610.