OREANDA-NEWS. August 26, 2011. Moscow Arbitration Cassation Court dismissed the claim of “Renaissance Insurance Group” Ltd. on invalidating the decision and determination of the Federal Antimonopoly Service (FAS Russia) issued upon the outcome of the case on price cartel between members of the KRK financial group and insurance companies on the market of vehicle insurance (KASKO), reported the press-centre of FAS Russia.

On 24th February 2011, Moscow Arbitration Court dismissed the claim of the insurance company on invalidating the decision and determination of the Federal Antimonopoly Service (FAS Russia) issued upon the outcome of the case on price cartel between members of the KRK financial group and insurance companies on the market of vehicle insurance.

On 17th May 2011, the 9th Arbitration Appeal Court upheld the judgment of Moscow Arbitration Court.

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

The group of persons comprising a credit organisation - “KRK” Commercial Bank” OJSC, an insurance organisation - “KRK-Strakhovanie” Ltd. and a company selling cars by installments and simultaneously acting as an insurance agent - “KRK” CJSC violated the law by concluding and participating in agrements with insurance companies.

The agreements resulted in fixing and maintaining the rates for insurance of vehicles that are pledged to “KRK” CJSC and “KRK” Commercial Bank” OJSC and imposing disadvantageous agreement conditions upon the clients of “KRK” CJSC and borrowers of “KRK” Commercial Bank” OJSC: fixed insurance premium for the second and consecutive years of motor vehicle insurance.

Reference:

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

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

(Clause 5) imposing disadvantageous contract conditions upon a counteragent or conditions irrelevant to the contract subject (unreasonable requirements to transfer financial funds, other property, including property rights, as well as consent to conclude a contract subject to including provisions regarding the goods, in which the counteragent is not interested, and other requirements).