OREANDA-NEWS. April 13, 2012. The Commission of the Federal Antimonopoly Service (FAS Russia) found that members of the National Union of Liability Insurers:”Admiral” Insurance Group” Ltd., “AlphaStrakhovanie” OJSC, “VSK” Open Joint-Stock Insurance Company, “VTB Strakhovanie” Insurance Company” Ltd., “Geopolis” Insurance Company” Ltd., “GUTA-Strakhovanie” CJSC, “Dvadtsat Pervy Vek” Insurance Company” CJSC, “Ingosstrakh” Open Joint-Stock Insurance Company, “Capital Strakhovanie” OJSC, “MAKS” CJSC, “NSG” Open Joint-Stock Insurance Company, “Region Soyuz” Insurance Company” Ltd., “RESO-Garantia” Open Joint-Stock Insurance Company, “Rosgosstrakh” Ltd., “Aliance” Insurance Company” OJSC, “Rossia” Open Joint-Stock Insurance Company, ÑÎÀÎ “Russky Strakhovoi Tsentr” Open Joint-Stock Insurance Company, “SOGAZ” OJSC, “Soglasie” Insurance Company” Ltd., “Surgutneftegaz” Insurance Company” Ltd., “TRANSNEFT” Insurance Company” CJSC, “UralSib” Insurance Company” CJSC, “ChSK” OJSC, “ENERGOGARANT” Joint-Stock Insurance Company” OJSC, “Yugoria” State Insurance Company” OJSC and “MSK” Insurance Company” OJSC- violated the antimonopoly law, reported the press-centre of FAS Russia.

Members of the National Union of Liability Insurers violated Clause 4 Part 4 Article 11 of the Federal Law “On Protection of Competition”. Insurers concluded and participated in an agreement fixing conditions for membership (participation) in a professional association – the National Union of Liability Insurers, which lead (can lead) in restricting competition on the market of mandatory insurance of liability of owners of hazardous facilities for inflicting harm as a result of accidents on hazardous facilities.

The case was initiated upon petitions from “OPORA ROSSII” National Public Organization of Small and Medium Business, as well as “ZHASKO” OJSC and “DIANA” Insurance Company” OJSC.

Having investigated the petitions, FAS established that the Statutes of the National Union of Liability Insurers, as well as the Procedures for Joining / Exiting / Excluding members (founders)to / from the National Union of Liability Insurers of the Union fixed additional requirements to insurers, wishing to join the Union as full-fledged members, that are not provided for by the Federal Law “On Mandatory Civil Liability Insurance of Owners of Hazardous Facilities for Inflicting Harm as a Result of Accidents on Hazardous Facilities”:

- Mandatory additional license for the right of re-insurance;

- 2-year experience of regulating damages under voluntary liability insurance.

Also the petitions stated that the joining fee and membership fee fixed by the National Union of Liability Insurers for 2011 - 6 million Rubles each, also constituted significant barriers for entry to the market of insuring hazardous production facilities.

Having studied the submitted materials, the FAS Commission concluded that the requirements set by members (founders) of the National Union of Liability Insurers create additional entry barriers to the market of insuring hazardous production facilities and lead (can lead) to restricting entry of insurers to the market of these services.

As of the date of passing the decision on the case members (founders) the National Union of Liability Insurers did not eliminate the antimonopoly violation, the FAS Commission also made a decision to issue a determination to the insurance companies – respondents to the case to stop violating the Federal Law “On Protection of Competition”.

Reference:

1. Clause 4 Part 4 Article 11 of the Federal Law “On Protection of Competition” prohibits agreements between economic entities if it is established that such agreements lead or can lead to restricting competition by fixing conditions for membership (participation) in professional and other associations.