OREANDA-NEWS. February 28, 2012. The Federal Arbitration Court of the Moscow District pronounced legitimacy of the fine (over 36 million Rubles) imposed by FAS upon the company for taking part in a price cartel on the market of comprehensive and collusion car insurance, reported the press-centre of FAS Russia.

“Renaissance Insurance Group” Ltd. concluded and took part in anticompetitive agreements, that have led (could have led) to maintaining and supporting prices (tariffs) for insuring vehicles of physical persons – the clients of “KRK” CJSC and “KRK” Commercial Bank” OJSC. “Renaissance Insurance Group” Ltd. also violated the law on protection of competition by concluding and participating in agreements that have led (could have led) to imposing disadvantageous insurance conditions upon the clients of “KRK” CJSC and “KRK” Commercial Bank” OJSC: establishing a fixed insurance tariff 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-Strakhovanie” Ltd. “KRK” Commercial Bank” OJSC, as well as six insurance companies: “AlphaStrakhovanie” OJSC, “MSK” Insurance Group” OJSC, “Rosgosstrakh” Ltd., “Admiral” Insurance Group” Ltd., “Renaissance Insurance Group” Ltd. and “Russkaya” Insurance Company” OJSC.

Having investigated the case on antimonopoly violation, FAS found that the legal entities violated Part 1 Article 11 of the Federal Law “On Protection of Competition”.

Upon the fact of recognizing the antimonopoly violation, FAS initiated administrative cases against the KRK group of persons and insurance companies, and as a result participants of the price collusion were imposed turnover fines for the total amount over 115 million Rubles.

Reference:

1. The total fine imposed by FAS Russia upon “Renaissance Insurance Group” Ltd. by FAS Russia under Article 14.32 of the Code on Administrative Violations? reached 36,828,070 Rubles.

2. Article 14.32. Concluding a competition-restricting agreement, exercising competition-restricting concerted actions, coordinating economic activities.

3. 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.