OREANDA-NEWS. February 27, 2012. The 9th Arbitration Appeal Court in Moscow confirmed legitimacy of FAS determination to fine KRK- Strakhovanie Ltd. over seven million Rubles for participating in a price cartel on the market of comprehensive and collusion car insurance. (The total amount of the fine 7,668,960 Rubles), reported the press-centre of FAS Russia.

KRK-Strakhovanie Ltd. violated the antimonopoly law by concluding and taking part in agreements that resulted in fixing and maintaining prices (tariffs) for insuring vehicles of physical persons the clients of KRK CJSC and KRK Commercial Bank OJSC. The insurance company exercised anticompetitive actions by concluding and participating in agreements that have led or could have led to imposing disadvantageous insurance conditions upon the clients of KRK CJSC and KRK Commercial Bank OJSC: establishing a fixed insurance tariff or the second and subsequent years of vehicle insurance at 9.99%.

The insurance company disagreed with the FAS determination and filed a lawsuit to Arbitration Court in Moscow. On 9th November 2011, the Court dismissed the claim.

On 20th February 2012, the 9th Arbitration Appeal Court also dismissed the appeal of KRK- Strakhovanie Ltd. to revoke the judgment of Moscow Arbitration Court of 9th November 2011 and passing a new judicial act to invalidate the FAS determination to hold the company administratively liable.

In 2010, FAS exposed price collusion on the market of vehicle insurance between the KRK group of persons, comprising Retail Crediting Company CJSC, KRK-Strakhovanie Ltd. KRK Commercial Bank OJSC, as well as six insurance companies: AlphaStrakhovanie OJSC, MSK Insurance Group OJSC, Rosgosstrakh Ltd., Admiral Insurance Group Ltd., Renaissance Insurance Group Ltd. and Russkaya Insurance Company OJSC.

Having investigated the case on antimonopoly violation, FAS found that the companies violated Part 1 Article 11 of the Federal Law On Protection of Competition.

Reference:

1. Article 14.32. Concluding a competition-restricting agreement, exercising competition-restricting concerted actions, coordinating economic activities

1. Concluding an agreement, prohibited by the antimonopoly law of the Russian Federation, by an economic entity, as well as taking part in it, or exercising concerted actions, prohibited by the antimonopoly law of the Russian Federation, by an economic entity, are punishable by an administrative fine upon officials from 20,000 to 50,000 Rubles, or disqualification for the period of up to three years; for legal entities from one hundredths 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 total income of the violator from selling all goods (works, services) from three thousandths to three 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.