OREANDA-NEWS. June 21, 2013. The Federal Antimonopoly Service (FAS Russia) initiated a case on administrative violation and is conducting an administrative investigation upon signs of “Rosgosstrakh” Ltd. submitting invalid information upon a request by the Antimonopoly Service.

Information was requested because FAS was receiving numerous complaints from physical persons that some insurance agents and insurer’s employees had refused to conclude agreements for mandatory third party liability insurance coverage of vehicle owners without concluding additional voluntary insurance agreements.

The petitioners reported that representatives of “Rosgosstrakh” Ltd. had referred to an “in-house” order under which policies for mandatory third party liability insurance of vehicle owners (OSAGO) could be sold only together with selling the policies of “Avto” RGS-Fortuna” and other voluntary insurance policies.

In this connection FAS requested “Rosgosstrakh” Ltd. and its branches to submit, in particular, certain documentation (orders, directions, letters, and instructions):

1. Under which policies of OSAGO and “Avto” RGS-Fortuna”, as well as OSAGO policies and other voluntary insurance policies should be sold together

2. And that were aimed at restricting the authority of employees of “Rosgosstrakh” Ltd. and employees of the branches of “Rosgosstrakh” Ltd. for concluding OSAGO agreements without simultaneously concluding voluntary insurance agreements.

Responding to the request, “Rosgosstrakh” Ltd. submitted information on the absence of any separate administrative documents regulating the procedures for selling OSAGO policies together with other voluntary insurance policies (“cross-selling”) and restricting the authority of their employees for concluding OSAGO agreements.

At the same time, FAS has a copy of No.59/01-01 order “On Combines Sale of Policies – OSAGO + IFL, OSAGO + “Avto” RGS-Fortuna””, of 27th March 2012 issued by a branch of Rosgosstrakh” Ltd. in the Rostov region. The Order:

1. Fixed mandatory norms for sale of IFL and “Avto” Fortuna policies regardless of the type of the areas as part of combined sale OSAGO + IFL, OSAGO + “Avto” RGS-Fortuna” from 1st March 2013

2. Whenever an OSAGO policy was sold, in 100 % case an IFL policy should have been sold (house, apartments) with an insurance premium 550 Rubles and more, “Avto” Fortuna with an insurance premium 550 Rubles and more or “Help on the Road”; the share of “Avto” Fortuna must have been no less than 45%;

3. OSAGO policies could be sold without simultaneously concluding IFL, “Avto” Fortuna / “Help on the Road” voluntary insurance agreement by Deputy Director on Retail Insurance personally.

In view of the above, FAS has initiated an administrative case against “Rosgosstrakh” Ltd. and is currently conducting an administrative investigation with regard to the fact of submitting invalid information upon the FAS request , which is punishable under Part 5 Article 19.8 of the Code of the Russian Federation on Administrative Violations.