The Competition Commission of India (CCI) has imposed a penal . 671 crore on four public sector inty of ` Insurance companies for indulging in anti-competitive practices.
National Insurance Company , New India Insurance Company , Oriental Insurance Company and United India Insurance Company will have to deposit the penalty amount within 60 days of receipt of this order.
The competition regulator held these insurers guilty of rigging a tender floated by the Kerala government in 2009 for selecting insurance service provider for im plementation of the Rashtriya Swasthya Bima Yojna. CCI has imposed the highest penalty of `. 250 crore on New India Assurance Company. United India Insurance Company faces a penalty of ` . 156.62 crore. National Insurance Company will have to . 162.80 crore as penpay ` alty whereas Oriental Insurance Compa . 100.56 crore as fine for its inny will pay ` volvement in anti-competitive practices.
“The commission, after considering the entire material available on record, directed the Director General (`DG’) to cause an investigation into the matter,“ said a CCI order. The regulator found that the public sector insurance companies formed a cartel to bag the contract. “Companies not only quoted higher insurance premium bids in response to the tenders issued for the years 2010-11, 2011-12 and 2012-13; but they also forced the government of Kerala to issue fresh tenders every year despite the fact that the said tenders were issued for a period of three years,“ the order said.
Source : The Economic Times
Date : 17th July 2015