OREANDA-NEWS.  May 10, 2012. The Federal Antimonopoly Service (FAS Russia) terminated a case against “Sovkombank” Investment Commercial Bank” Ltd. and “ALIKO” Insurance Company” CJSC due to absence of violating Part 4 Article 11 of the Federal Law “On Protection of Competition”, reported the press-centre of FAS Russia.  

The FAS Commission includes on parity basis officers of the antimonopoly authority and the Bank of Russia.

The case was initiated upon a complaints from physical persons regarding actions of “Sovkombank” Investment Commercial Bank” Ltd. and “ALIKO” Insurance Company” CJSC that the bank and the insurance company were imposing an additional service upon bank borrowers for voluntary insurance programme and buying an insurance policy from a particular insurance company - “ALIKO” Insurance Company” CJSC in the Republic of Khakassia and the Irkutsk region in order to obtain a loan.

Physical persons – borrowers of “Sovkombank” Investment Commercial Bank” Ltd. in a voluntary insurance programme were included under the framework of an Agreement for voluntary group life insurance and personal accidents and sickness insurance between “Sovkombank” Investment Commercial Bank” Ltd. and “ALIKO” Insurance Company” CJSC.

Investigating the case, the FAS Commission studied provisions of the Agreement, in particular, the form of an agreement for including an application / offer for loan granting in the voluntary insurance programme, which is an integral part of the Agreement, as well as communications between officers of “Sovkombank” Investment Commercial Bank” Ltd. and “ALIKO” Insurance Company” CJSC regarding group insurance of bank borrowers.

Analysis carried out by the FAS Commission, the case materials do not contain documents that have provisions on imposing or any other form of forcing the borrowers to give consent to be insured under a voluntary insurance agreement.

The applications for including in the voluntary insurance programme (both standard forms and the forms signed by the borrowers – claimants on the case), directly specify that the service for including in the voluntary insurance programme is voluntary and a refusal to take part in the programme does not constitute the grounds to refuse granting a loan.

The case file does not contain documents confirming oral arrangements between “Sovkombank” Investment Commercial Bank” Ltd. and “ALIKO” Insurance Company” CJSC regarding imposing a service upon the borrowers for being included in the voluntary insurance programme.

Thus actions of “Sovkombank” Investment Commercial Bank” Ltd. and “ALIKO” Insurance Company” CJSC do not constitute a violation of Part 4 Article 11 of the Federal Law “On Protection of Competition” and FAS terminated the case.

In course of the investigation, “Sovkombank” Investment Commercial Bank” Ltd. and “ALIKO” Insurance Company” CJSC concluded a new Agreement for voluntary group life insurance and personal accidents and sickness insurance in the event of surviving to involuntary job loss. The Agreement conditions provide for returning funds in the size of 100% of the payment for including in the insurance programme, in case a borrower of “Sovkombank” Investment Commercial Bank” Ltd. refuses to take part in the programme within 30 calendar days from the date of joining the programme.