OREANDA-NEWS. September 24, 2009. The Commission of the Federal Antimonopoly Service, that on parity basis includes officers of the antimonopoly authority and the Central bank of Russia, found that "Absolute Bank" Joint-Stock Commercial bank (CJSC) and 17 insurance companies: "Ingosstrakh" Open Joint-Stock Insurance Company, "Grouppa Renessance Strakhovanie" Ltd., "РОСНО" OJSC, "Capital Strakhovanie "OJSC, "Voenno-Strakhovaya Kompania" OJSC, "RESO-Garantia" Open Joint-Stock Insurance Company, "OSNOVA" Industrial Insurance Group" Ltd., "Rosgosstrakh-Ural" Ltd., "Rosgosstrakh-Stolitsa" Ltd., "Rosgosstrakh-Dalny Vostok" Ltd., "Rosgosstrakh-Severo-Zapad" Ltd., "Rosgosstrakh-Sibir" Ltd., "Rosgosstrakh-yug" Ltd., "Rosgosstrakh -Povolzhie" Ltd., "Rosgosstrakh-Accord" Ltd., "Rosgosstrakh-Tatarstan " Ltd. and "Rosgosstrakh-Tsentr" Ltd. violated Clause 5 Part 1 Article 11 of the Federal Law "On Protection of Competition" (entering into agreements that lead (can lead) to imposing unfavourable conditions of mortgage loan agreements upon borrowers and irrelevant to the subject matter of the contract, reported the press-centre of FAS Russia.

The Commission terminated proceedings on the case without issuing determinations to the bank and insurance companies due to voluntary elimination of the violation and its consequences in course of the case investigation.

The case was initiated upon the Commission's findings on another antimonopoly case of 28th April 2009 against the bank and insurance companies in relation to their cooperation as part of auto and mortgage loan programmes.

Under the agreements, when the bank grants mortgage loans, the borrowers were obligated to insure, apart from the risks of loss (death) and damage of the mortgage subject, to insure the risks of borrower's life and health and/ or disability, as well as terminating or restricting ownership rights for the mortgage subject.

The Commission concluded that such a condition of mortgage loan was irrelevant to the subject matter of the existing loan agreement and could be unfavourable for the borrowers. Such agreements contravened Clause 5 Part 1 Article 11 of the Federal Law "On Protection of Competition".

In course of the case investigation the bank and insurance companies filed the documents confirming voluntary elimination of the antimonopoly violation, namely:

- The bank devised and introduced alternative products under mortgage loan programmes, which do not require insuring other risks apart from the risks of losses (death)/ damaged to the subject of the mortgage;

- The bank published a notice for the borrowers with existing mortgage loan the bank website. The borrowers are informed that if in the future they do not wish to insure life, health and other title risks and if they agree to the increase of the interest rates specified in the loan terms and conditions, they can file a statement to any bank branch about changing the loan conditions.