OREANDA-NEWS. December 12, 2011. The 9th Arbitration Appeal Court dismissed the claim of “Renaissance” Insurance Group” Ltd. to reverse the judgment of Moscow Arbitration Court of 23rd November 2011 and to invalidate FAS determination to fine “Renaissance” Insurance Group” Ltd. over 36 million Rubles (36,828,070 Rubles) for taking part in a price cartel on the market of comprehensive and collusion car insurance, reported the press-centre of FAS Russia.

FAS fined the insurance company upon establishing the fact of concluding and participating in competition-restricting agreements that led (could have led) to fixing and maintaining prices (tariffs) for vehicle insurance for physical persons – the clients of “KRK” CJSC and “KRK” Commercial Bank” OJSC as well as for concluding and participating in agreements that led (could have led) to imposing disadvantageous insurance contract conditions upon the clients of “KRK” CJSC and “KRK” Commercial Bank” OJSC, in the part of fixing insurance premium for the second and subsequent years of vehicle insurance at 9.99%.

In 2010 FAS exposed price collusion on the market of vehicle insurance between the KRK group of persons comprising “Retail Crediting Company” CJSC, “KRK-Strakhvania” Ltd. and “KRK” Commercial Bank” OJSC, and six insurance companies: “Alpha-Strakhovanie” OJSC, “MSK” Insurance Group” OJSC, “Rosgsstrakh” Ltd., “Admiral” Insurance Group” Ltd., “Renaissance” Insurance Group” Ltd., and “Russkaya” Insurance Company” OJSC.

Having investigated the case, FAS found that the cartel participants violated Part 1 Article 11 of the Federal Law “On Protection of Competition”.

Upon recognising the fact of violating the antimonopoly law, FAS opened administrative proceedings against the KRK group of persons and the insurance companies. As a result, FAS imposed turnover fines upon the violators for the total amount exceeding 115 million Rubles.

Reference:

1. Article 14.32. Concluding a competition-restricting agrement, exercising competition-restricting concerted actions, coordinating economic activities

1. Concluding an agreement, prohibited by the antimonopoly law of the Russian Federation, by an economic entity, as well as taking part in it, or exercising concerted actions, prohibited by the antimonopoly law of the Russian Federation, by an economic entity, are punishable by an administrative fine upon officials – from 20,000 to 50,000 Rubles, or disqualification for the period of up to three years; for legal entities – from one hundredths to fifteen hundredths of the income of the violator from selling goods (works, services) on the market where the administrative violation was committed, but no less than 100,000 Rubles, and if the income of the violator from selling goods (works, services) on the market where the administrative violation was committed exceeds 75% of the total income of the violator from selling all goods (works, services) – from three thousandths to three hundredths of the income of the violator from selling goods (works, services) on the market where the administrative violation was committed, but no less than 100,000 Rubles.