A settlement between a car rental company and a man in his 70s who was made to pay an “age surcharge” of €25 per day has resulted in the firm changing its policies on age restrictions.

The Equality Authority, dealing with several similar cases, said the move was “very significant” as it is the first outcome of its kind in this country.

In May 2006 Br Anthony White, a Christian Brother who lives in Australia, rented a car from Irish Car Rentals at Dublin Airport.

He was charged an extra €25 — an increase of 33% on the normal rental cost — because of his age. He was also told on his next visit to Ireland he would not be considered eligible to rent a vehicle as he would be over 75 years old.

Br White raised the issues with the company, but when he did not receive a satisfactory response, proceeded to contact the Equality Authority.

Chief executive officer Niall Crowley said as a result of negotiations with the company, the blanket ban on drivers over 75 years of age has been removed, as has the automatic daily surcharge for drivers over 70. A safety assessment form, to take account of individual drivers’ health, driving experience and existing motor insurance policy, has been introduced.

Welcoming the settlement, Mr Crowley said it represents another step in eradicating the exclusion of older people by age limits.

“We get a lot of queries about this kind of thing,” he said “The use of lower and upper age limits to govern access to insurance products, financial and other services is a widespread problem.

“Age limits exclude people without any consideration of their individual circumstances.”

Mr Crowley said companies should urgently review their policies and practices and remove any remaining age limits to ensure that they comply with the Equal Status Acts.

Irish Car Rentals said they are pleased with the outcome of the case and that the new system is working well.