OREANDA-NEWS. July 16, 2008. The Federal Antimonopoly Service (FAS Russia) recognized that "RZhD" OJSC breached Part 1 Article 10 of the Federal Law "On Protection of Competition" (abusing dominant position), reported the press-centre of FAS Russia.

The case investigation involved 19 insurance companies as concerned parties:

1. "Conda" CJSC

2. "BSO" CJSC

3. "Radonezh" Insurance Company" Ltd.

4. "Energogarant" Joint-Stock Insurance Company" OJSC

5. "Ingosstrakh" Open Joint-Stock Insurance Company

6. "GUTA-Strakhovanie" CJSC

7. "Planeta-Fond" Insurance Company Ltd.

8. "Zheleznodorozhny Strakhovoi Fond [Railways Insurance Foundation]"
Insurance Company" CJSC

9. ZHASO "Magistral" CJSC

10. "Test-ZHASO" Insurance Company" OJSC

11. "ZHASKO" OJSC

12. Severo-Kavkazskoye ZHASO "Liter-Polis" Insurance Society

13. "Timereserve" Insurance Company" CJSC

14. "Skif-Incom" Insurance Company" CJSC

15. "BSK "Resonance" Ltd.

16. "Afes" Insurance Society" OJSC

17. "ZAPSIB ZHASO" CJSC

18. "DALZHASO " OJSC

19. "ZHASO" OJSC

FAS Russia established that on 25th August 2007 the Federal Passenger Directorate of "RZhD" OJSC (FPD "RZhD" OJSC) had sent a telegram forbidding the booking clerks of "RZhD" OJSC to sell voluntary insurance polices of the companies that had not had contracts with FPD "RZhD" OJSC for such business. The letter also forbade manual registering of voluntary insurance polices.

As a result, the insurance companies that registered insurance agreements manually, through their agents - the booking clerks of "RZhD" OJSC - were removed from the market of voluntary insurance of railway passengers.

FAS Russia also established that insurance companies did not have equal access to the market of voluntary insurance of railway passengers.

FAS Russia concluded that removing insurance companies, which register insurance polices manually, from the market, and the absence of an open access to the market resulted in restricting and eliminating competition on the market of voluntary insurance of railway passengers, which violated Part 1 Article 10 of the Federal Law "On Protection of Competition".

In course of the case investigation, "RZhD" OJSC prepared draft "Procedures for considering petitions of insurance organizations that are interested in voluntary insurance of railway passengers" (the Procedures).

The Procedures establish equal market access of insurance companies through bidding for the right to sell polices in the booking offices of "RZhD" OJSC. If several companies plan to sell polices through the same booking offices, FPD "RZhD" OJSC will organize biddings for 1-year contracts with insurance companies.

The Procedures also include a list of documents and deadlines for processing petitions from insurers interested in voluntary insurance of passengers' life and health using the facilities of "RZhD" OJSC.

The draft "Procedures for considering petitions of insurance organizations that are interested in voluntary insurance of railway passengers", presented by "RZhD" OJSC, comply with the antimonopoly legislation, and are aimed at supporting competition and providing equal access of insurance companies to the market of voluntary insurance of railway passengers.

FAS Russia recognized that "RZhD" OJSC violated Part 1 Article 10 of the Federal Law "On Protection of Competition" and issued a determination to eliminate the consequences of the antimonopoly violations, namely: within three months "RZhD" OJSC must present to FAS Russia the evidence that the telegram, sent by FPD "RZhD" OJSC on 25th August 2007, is withdrawn and the "Procedures for considering petitions of insurance organizations that are interested in voluntary insurance of railway passengers" are approved.