QBE may appeal to the High Court after it lost an appeal against a federal magistrate’s finding that it had unreasonably discriminated against a woman with breast cancer by refusing to sell her travel insurance.

And if it still can’t obtain a judgement in its favour, QBE may consider getting out of travel insurance in Australia, according to Australia MD Raymond Jones.

Adelaide-based Denise Bassanelli successfully sued QBE for discrimination after it refused to cover her travel for a trip to Japan  – which she had won in a radio station competition – in 2002.

She found another insurer willing to take the risk, but decided to lodge a complaint with the Human Rights and Equal Opportunity Commission. The commission threw her complaint out but she went to the Federal Magistrates’ Court last September and won. She was awarded $5000 for her distress throughout the ordeal.

QBE took the case back to court earlier this year saying the magistrate had erred, but the Federal Court in Adelaide found in her favour.

Mr Jones told Sunrise Exchange News yesterday that the basis of the judgement is “fundamentally wrong” and the company has reserved its right to further appeal the decision. He says although he feels sympathy for Ms Bassanelli, QBE can’t change the way it underwrites risk for one isolated case.

“This could set a precedent for future cases in a very big way,” he said. “If the case is knocked back and we’re not able to adequately underwrite this risk, then we won’t play the game.”

Justice John Mansfield told the Federal Court in Adelaide that although illnesses or accidents during a holiday could be more difficult to treat in a cancer patient, QBE had not sought any information from Ms Bassanelli’s doctors before refusing her application. He said the insurer had also “destroyed her joy” of winning the holiday. “She said she was devastated,” he said in his ruling.

Ms Bassanelli told the court QBE’s decision had felt like “being diagnosed with cancer all over again”. She said QBE “wanted to bury me before my time is up”.