Sataj felt an insurance company racially discriminated against him

Insurance Discrimination

Sataj had obtained two quotes from a car insurance company, both for different sums. He felt his car insurance company had indirectly discriminated against him when calculating his insurance premium.

What happened

Sataj felt his car insurance company had indirectly discriminated against him on the grounds of race when calculating his insurance premium.

He’d obtained two quotes from the company, both for different sums. Sataj provided the same information when applying for insurance.

However, when offered the cheaper quote, he said he’d been a resident in the UK since birth. On the second application, he said he’d been resident in the UK for many years but didn't mention this was since birth.

What we said

In complaints such as this, we’ll ask the insurer to tell us what it’s looked at to decide the premium.

The price of insurance is mostly based on risk data collected by Insurers about past claims, and they use it to determine the risk they’re willing to cover.

In Sataj’s case, the insurer provided us with statistical information. This supported its position that those who aren’t UK residents from birth are more likely to make a claim on their car insurance policy.

The evidence showed the risk of a claim reduces the longer someone lives in the UK. But it also showed this risk is still higher than if someone has been a UK resident from birth.

We empathised with Sataj and could see why he felt he was discriminated against. But we were satisfied the higher premium was proportionate, based on what the insurer believed was the statistical risk based on the information he had given them. That's because the insurer believed Sataj belonged to a group of drivers who were more likely to make a claim.

We felt Sataj had been treated fairly and reasonably in the circumstances.