OREANDA-NEWS. October 10, 2011. Moscow Arbitration Court dismissed the claim of “Renaissance Insurance Group” Ltd. to invalidate an administrative fine (35 million Rubles) imposed upon the company by the Federal Antimonopoly Service (FAS Russia), reported the press-centre of FAS Russia.  

In 2010, FAS found that KRK group of persons, comprising “Kompania Roznichnogo Kreditovania” CJSC, “KRK-Strakhovanie” Ltd., and “KRK” Commercial Bank” OJSC, as well as six insurance companies - “AlphaStrakhvanie” OJSC, “MSK” Insurance Company” OJSC, “Rosgosstrakh” Ltd., “Admiral” Insurance Group” Ltd., “Renaissance Insurance Group” Ltd. and “Russkaya Insurance Company” OJSC violated Part 1 Article 11 of the Federal Law “On Protection of Competition”.

“Renaissance Insurance Group” Ltd. concluded and participated in anticompetitive agreements, that resulted (could have resulted) in fixing and maintaining prices for insurance of vehicles for physical persons – the clients of “KRK” CJSC and “KRK” Commercial Bank” OJSC, as well as concluding and participating in agreements that led (could have led) to imposing disadvantageous conditions of insurance agreements upon clients of “KRK” CJSC and “KRK” Commercial Bank” OJSC, in terms of setting a fixed insurance premium for the second and subsequent years of vehicle insurance at 9.99%.

Upon the fact of recognizing the fact of antimonopoly violation, FAS fined the KRK group of persons and the insurance companies in total over 115million Rubles.

Reference:

Under Part 1 Article 14.32 of the Code of the Russian Federation on Administrative Violations, if an economic entity concludes a competition-restricting agreement, exercises competition-restricting concerted actions, coordinated economic activities, as well as concluded an agreement prohibited by the antimonopoly law of the Russian Federation, or participated in it, or if an economic entity is engaged in concerted actions prohibited by the antimonopoly law of the Russian Federation, it is punishable by an administrative fine upon officials – from 20,000 to 50,000 Rubles, or disqualification for the period of up to three years; upon legal persons – from one hundredth to fifteen hundredths of the income of the violator from selling goods (works, services) on the market where the administrative violation was committed, but no less than 100,000 Rubles; and if the income of the violator from selling goods (works, services) on the market where the administrative violation was committed exceeds 75% of the overall income of the violator from selling all goods (works, services) – from three thousandths to three hundredths the income of the violator from selling goods (works, services) on the market where the administrative violation was committed, but no less than 100,000 Rubles.