OREANDA-NEWS. September 01, 2011. The Office of the Federal Antimonopoly Service in the Perm region (Perm OFAS Russia) initiated two cases upon the facts of collusion in the field of personal insurance services associated with consumer credits, reported the press-centre of FAS Russia.

OFAS suspects that “Alpha Bank” OJSC and “AlphaStrakhovanie-Zhizn” OJSC, as well as “ROSBANK” Share-Holding Commercial Bank” OJSC and “Sogecap Strakhovanie Zhizni” Ltd. violated Clauses 4, 5, 8 Part 1 Article 11 of the Federal Law “On Protection of Competition”.

The banks forced loan applicants to insure their life and health with particular insurance companies. The insurance agreements were to be valid for the whole loan period, the payment must be made as a lump sum, and insurance benefits were equal to the remaining credit debt. In all instances the bank was the beneficiary.

“Such actions can restrict competition on the market of insurance services and to a significant extent infringe consumer interests. The main objective of such cases is, first of all, to protect the rights of the persons who apply for bank loans and are forced to sign disadvantageous conditions of insurance against risks”, commented the Head of Perm OFAS Russia, Dmitry Makhonin.

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Earlier Perm OFAS Russia initiated similar cases regarding “Renaissance Capital” Commercial Bank” Ltd. and “Renaissance” Insurance Group” Ltd., “TRUST” National Bank” OJSC and “Aviva” Insurance Company” CJSC, the “Savings Bank of Russia” OJSC and “ROSNO” Insurance Company” OJSC.