OREANDA-NEWS. October 19, 2011. The 17th Arbitration Appeal Court confirmed legitimacy of the decision issued by the Office of the Federal Antimonopoly Service in the Republic of Udmurtia (Udmurtia OFAS Russia) on imposing a fine upon the “Savings Bank of Russia” and “ROSNO” Insurance Company” OJSC, reported the press-centre of FAS Russia.

The case against the “Savings Bank of Russia” and “ROSNO” Insurance Company” OJSC was initiated upon a complaint from a physical person stating that to grant consumer (collateral-free) loans to physical persons the Bank forced applicants to insure life with the only insurance company “ROSNO” explaining that only “ROSNO” Insurance Company” OJSC insured under such conditions (without medical examination).

The Commission of Udmurtia OFAS Russia established that the Bank informed potential borrowers that they could buy insurance policies only with a single insurance company– “ROSNO” Insurance Company” OJSC, at the same time withholding information about the right to insure with other insurance companies, which deprived the borrowers from a possibility to chose an insurance company when applying for a credit product that required insurance. Insurance companies, with whom the Bank does not cooperate, were unable to compete for particular insured parties under the programme for insuring bank borrowers.

The agreement confirms mutual interest of the Bank and “ROSNO” Insurance Company” OJSC to work only with a single insurance company. By insuring the bank clients with “ROSNO”, the Company” receives income in the form of insurance premiums and the Bank receives a commission which is 7 times higher than the insurance premium paid by the Bank to “ROSNO” Insurance Company” OJSC.

Udmurtia OFAS Russia found that the “Savings Bank of Russia” and “ROSNO” Insurance Company” OJSC violated Clauses 4, 5 and 8 Part 1 Article 11 of the Federal Law “On Protection of Competition” and issued a determination to stop the competition-restricting agreement and to transfer the income obtained through the antimonopoly violating to the federal budget: the “Savings Bank of Russia” - over 26 million Rubles, “ROSNO” Insurance Company” OJSC – over 3 million Rubles. For concluding the competition-restricting agreement the “Savings Bank of Russia” was fined over 45 million Rubles, “ROSNO” Insurance Company” OJSC - 100000 Rubles.

The “Savings Bank of Russia” and “ROSNO” Insurance Company” OJSC filed a lawsuit challenging the decision, determinations and orders of Udmurtia OFAS Russia.

The Arbitration Court of the Republic of Udmurtia pronounced legitimacy of the conclusions made by the antimonopoly bodies. The Appeal Court also disagreed with the arguments of the claimants about absence of the violations of the antimonopoly law, but reduced the fine upon the “Savings Bank of Russia” to 9 million Rubles (1% of the income).