OREANDA-NEWS. June 17, 2009. The Federal Antimonopoly Service (FAS Russia) initiated a case against the Russian Union of Auto Insurers (RSA) because the Union fixed the threshold level of agent commission for selling polices of mandatory civil liability motor-vehicle insurance (OSAGO) at 10% of insurance premium. The Union also introduced sanctions for exceeding the threshold level, reported the press-centre of FAS Russia.

The Russian Union of Auto Insurers is a sole national professional association based on mandatory membership of the insurance companies; it sets professional conduct rules mandatory for all union members.

RSA's fixing the standard level of agent commission for selling OSAGO polices, exceeding which is punishable by sanctions, has formal elements of violating Part 3 Article 11 of the Federal Law "On Protection of Competition", in terms of price fixing.

Reference:
Part 3 Article 11 of the Federal Law "On Protection of Competition" prohibits coordination of economic activity of market participants if such coordination leads (can lead) to the consequences specified in Part 1 Article 11, including fixing prices for services.