OREANDA-NEWS. May 29, 2014. The Federal Arbitration Court of the Moscow District confirmed legitimacy of FAS determination to hold “Rosgosstrakh” Ltd. liable under Part 5 Article 19.8 of the Code of the Russian Federation on Administrative Violations as the company had submitted unreliable information upon a request of the antimonopoly authority.

At the same time, No.343 Federal Law “On Introducing Changes to Article 19.8 of the Code of the Russian Federation on Administrative Violations” of 02.12.2013 sets the administrative fine upon legal entities for committing violations specified in Part 5 Article 19.8 of the Code at 50,000 RUB – 500,000 RUB. The Cassation Court ruled to change the judicial acts adopted earlier (also confirming legitimacy of the FAS determination) on sanctions and impose administrative fines - 50,000 RUB.

Earlier, the fines for legal entities were from 300,000 to 500,000 RUB.

On 6th August 2013, FAS found that “Rosgosstrakh” Ltd. violated Part 5 Article 19.8 of the Code of the Russian Federation on Administrative Violations by supplying unreliable information and imposed an administrative fine upon the company – 300,000 RUB.

The decision was made upon the results of an administrative investigation on an administrative violation upon signs of “Rosgosstrakh” Ltd. submitting unreliable information upon a FAS request.

FAS requested information due to numerous complaints from physical persons that insurance agents and staff of insurance companies had been refusing to conclude OSAGO (mandatory third party liability insurance) agreements without concluding additional voluntary insurance agreements. According to the complaints representatives of “Rosgosstrakh” Ltd. mentioned some “in-house order” to sell OSAGO policies only jointly with RGS-Fortuna “Avto” policies as well as other voluntary insurance policies.

Responding to the request by the antimonopoly authority, “Rosgosstrakh” Ltd. submitted information on the absence of any particular administrative documents regulating the procedures for sale of OSAGO policies jointly with other voluntary insurance policies (“cross-sales”) as well as restricting the powers of staff members for concluding OSAGO agreements.

At the same time, FAS had in its possession a copy of No. 59/01-01 Order “On Joint Sale of OSAGO + IFL, OSAGO +Fortuna “Avto” Policies” of 27.02.2013 issued by a branch of “Rosgosstrakh” Ltd. in the Rostov region.