OREANDA-NEWS. May 25, 2011. The 9th Arbitration Appeal Court in Moscow upheld the judgment of Moscow Arbitration Court regarding “Renaissance Insurance Group” Ltd., reported the press-centre of FAS Russia.

On 24th February 2011, Moscow Arbitration Court dismissed a claim of the insurance company about invalidating the decision and determination issued by the Federal Antimonopoly Service (FAS Russia) upon investigating a case on price collusion between members of the KRK Financial Group and insurance companies on the market of vehicle insurance.

On 2nd August 2010, the FAS Russia’s Commission found that “KRK” CJSC, “KRK” Commercial Bank (OJSC), “KRK-Insurance” Ltd. and “AlphaStrakhovanie” OJSC, “MSK” Insurance Group” OJSC, “Rosgosstrakh” Ltd., “Admiral” Insurance Group” Ltd., “Renaissance Insurance Group” Ltd. and “Russkaya” Insurance Companies OJSC violated Clauses 1 and 5 Article 11 of the Federal Law “On Protection of Competition”.

The law was violated when a group of persons, comprising a credit organization - “KRK” Commercial Bank (OJSC), an insurance company – “KRK-Insurance” Ltd. and a company that was involved in installment sale of vehicles and in the same time provided services of an insurance agent – “KRK” CJSC, concluded and participated in agreements with insurance companies.

These agreements resulted in fixing and maintaining the rates for insurance of vehicle pledged to “KRK” CJSC “KRK” Commercial Bank (OJSC), as well as imposing disadvantageous insurance contract conditions upon the clients of “KRK” CJSC and borrowers of “KRK” Commercial Bank (OJSC): fixing the size of insurance premium for the second and subsequent years of vehicle insurance.

Reference:

Clauses 1 and 5 Article 11 of the Federal Law “On Protection of Competition” prohibits agreements between economic entities or concerted actions of economic entities if such agreements or concerted actions lead or can lead to:

(Clause 1) fixing or maintaining prices (tariffs), discounts, mark-ups, surcharges;

(Clause 5) imposing disadvantageous contract conditions upon a counteragent or conditions irrelevant to the contract subject (unreasonable requirements about transferring financial assets, other property, including property rights, as well as consent to enter into a contract provided it incorporates provisions in which the counteragent is not interested, and other requirements).