OREANDA-NEWS. September 25, 2009. The Commission of the Federal Antimonopoly Service, that on parity basis includes officers of the antimonopoly authority and the Central bank of Russia, terminated antimonopoly proceedings, without issuing a determination, against "CREDIT EUROPE BANK" CJSC and 18 insurance companies: "Generalny Strakhovoi Alliance" Ltd., "Russkaya Strakhovaya Kompania" OJSC, "GUTA-Strakhovanie" CJSC, "Zurich. Retail" Insurance Company" Ltd., "Rosgosstrakh-Tatarstan" Ltd., "Rosgosstrakh-Stolitsa" Ltd., "Rosgosstrakh-Povolzhie" Ltd., "Rosgosstrakh-Accord" Ltd., "Rosgosstrakh-Sibir" Ltd., "ОRANTA" Insurance Company" Ltd., "АSKO" Insurance Group" Ltd, "ASOL" Insurance Company" CJSC, "Yugoria" State Insurance Company" OJSC, "Credit Europe Life" Insurance Company" Ltd., "Voenno-Strakhovaya Kompania" OJSC, "SOGAZ" OJSC, "Grouppa Renessance Strakhovanie" Ltd. and "UralSib" Insurance Group" CJSC, reported the press-centre of FAS Russia.

The Commission arrived to that decision due to voluntary elimination by the bank and insurance companies of the antimonopoly violations and their consequences related to cooperation under mortgage loan programmes.

The case was initiated upon the Commission's findings on another antimonopoly case of 26th April 2009 against the bank and some insurance companies that had violated the Federal Law "On Protection of Competition" by concluding agreements related to auto and mortgage loans.

Under the agreements, when the bank grants mortgage loans to the borrowers, apart from the risks of loss/ damages to the pledged property, the bank set a mandatory requirement to the borrowers to insure the risks of death/ disability of the borrower as well as termination of the ownership rights of the borrower for the pledged property. Mandatory requirements to the borrowers also included insurance of the above risks only in the insurance companies selected/approved or recommended by the bank.

The Commission found that the bank and insurance companies violated Clauses 4 and 5 Part 1, as well as Part 2 Article 11 the Federal Law "On Protection of Competition".

In course of the case investigation, the bank and insurance companies presented documents confirming voluntary elimination of the violations.

The bank devised and introduced alternative products under mortgage loan programmes, which do not require insuring other risks apart from the risks of losing / damaging the pledged property.

Also the bank published a notice for the borrowers with existing mortgage loan at the bank website. The borrowers are being informed that can ask the bank to change conditions of the loan agreement in terms of abolishing mandatory insurance of loss of life/ disability as well as losing ownership rights provided the interest rate is increased by 4.5%.