Sainsburys home insurance believes that many UK home insurers are not treating their customers fairly because they provide a no-claims discount on their motor insurance but not on home insurance policies.

The supermarket insurer states that this results in many home insurance customers losing out on potentially huge premium savings. And, if they do make a claim, their premiums may rise sharply because they have not been able to build up a no claims discount, which can reduce the impact of any increases.

Sainsbury?s commissioned Defaqto Ltd to conduct the research, and the findings showed that while all car insurance policies offer a no-claims discount, 39% of home insurance policies don?t. Those policies that do, some unfairly penalise policyholders for making a claim by removing all of the no-claims discount accumulated.

Another area of concern highlighted by the research is that 75% of policies that do offer no-claims discount's provide no information on terms and conditions making it very hard for customers to understand how their cover works.

Robert O?May, home insurance manager at Sainsbury?s Bank said: ?A no-claims discount can significantly reduce your premiums. After five years of not making a claim on our home insurance policy, our customers could benefit from up to 30% no-claims discount. We believe that there is no reason for insurers to offer a no-claims discount on their motor insurance but not their home insurance policies. In both areas, customers should be rewarded for being claom free.

"We think it's alarming that so many providers are potentially confusing consumers by not being upfront about their co-claims discount provision. If they offer a no-claims discount they should make it clear and transparent."

Sainsbury?s Bank says that while a no-claims discount won't always prevent premiums going up on renewal, it can provide a major saving and reduce the impact of any unrelated rise in premiums after a claim so it's prudent to shop around for a policy that allows you to earn a discount.

The research also revealed that over 10 million people made a claim on their home insurance over the past five years and estimates that up to 60% of those did not benefit from a no-claims discount. This means that they were more likely to see a dramatic increase in their premiums.

Sainsbury?s home insurance provides competitively priced buildings and contents cover which can save consumers up to £127* when compared to other insurers. Unlike some providers, by offering no-claims discount protection after five claim-free years, Sainsbury's Bank allows you to have one claim in any year without losing your accumulated no-claims discount.

*Savings based on independent telephone research by Consumer Intelligence Ltd comparing 150 risks across 32 companies from October ? December 2006. 10% of customers achieve a saving of £127.17.