OREANDA-NEWS. January 14, 2010. The Tatarstan Office of the Federal Antimonopoly Service (OFAS Russia) fined "Renaissance Insurance Group" Ltd. 8 587 890 Rubles. The antimonopoly body established that the insurer prevented access of other companies to the market for insurance of physical persons, by entering in a specific agreement with a bank (Part 1 Article 11 of the Federal Law "On Protection of Competition"), reported the press-centre of FAS Russia.

The investigation of the case was opened upon numerous complaints from individuals who approached "Renaissance Capital" Commercial Bank to obtain a loan. Mandatory loan conditions included borrower's life and health insurance, which the borrowers could not refuse to buy.

When a potential borrower concludes a loan agreement with "Renaissance Capital" Commercial Bank Ltd., the Bank provides services for including the borrower in the Insurance Proramme and forces the borrower to enter in an agreement for accident and sickness insurance and imposes services for life and health insurance. Borrowers are not given a possibility to choose an insurance company as the documents that they must sign specify a particular insurance company - "Renaissance Insurance Group" Ltd.

The Tatarstan OFAS Russia discovered that the Bank and "Renaissance Insurance Group" Ltd. had signed No. GG1304/07 Insurance Agreement of 14th December 2007, which had established the standard insurance application form without providing a possibility to refuse to join the Insurance Programme.

Therefore, the Agreement between "Renaissance Capital" Commercial Bank Ltd. and "Renaissance Insurance Group" Ltd., which does not allow to refuse joining the Insurance Programme, as well as specifying a particular insurance organization - "Renaissance Insurance Group" Ltd. - in the standard insurance application form leads (can lead) to preventing entry of other insurance organizations to the market of personal insurance of physical persons - borrowers of bank funds - when insuring default risks (or late payment of the borrowed funds).

"The decision regarding "Renaissance Insurance Group" will force to think of the situation not only the violator but also other participants of the insurance market. I advise those organizations that entered into similar anticompetitive agreements to voluntarily report them to the antimonopoly authority, in which case the punishment will be minimal", said Alexander Grunichev, the Head of the Tatarstan OFAS Russia.

"FAS Russia authorized the Tatarstan OFAS Russia to consider the case. I trust that forwarding the cases of federal importance to the regional antimonopoly bodies for investigation and handling is a very good practice for us, which hopefully, will continue", added the Head of the Tatarstan OFAS Russia.