OREANDA-NEWS. April 28, 2010. The 17th Arbitration Appeal Court upheld the judgment of the Court of First Instance that had pronounced validity of the decision of the Sverdlovsk OFAS Russia regarding the "Bank of Moscow" Joint-Stock Commercial Bank" OJSC and insurance companies, reported the press-centre of FAS Russia.

On 7th September 2009, the Sverdlovsk OFAS Russia found the fact of violating Article 11 of the Federal Law "On Protection of Competition" by the "Bank of Moscow" Joint-Stock Commercial Bank" OJSC and 14 insurance companies.

The "Bank of Moscow" Joint-Stock Commercial Bank" OJSC and "MSK-Life" CJSC violated the law by concluding an agency agreement, which led (could have led) to:

- maintaining tariffs for life insurance and insurance of disability risks;

- imposing agreement conditions irrelevant to the subject of the agreement upon the borrowers (security providers) and disadvantageous for them in the form of mandatory life and disability risk insurance for the period of the credit agreement extended by ten days, as well as fixing the amount of coverage increased by 5% of the loan indebtedness, which is contrary to Clauses 1 and 5 Part 1 Article 11 of the Federal Law "On Protection of Competition".

The "Bank of Moscow" Joint-Stock Commercial Bank" OJSC also concluded agreements and (or) agency contracts with the following insurance companies: "RESO-Garantia" Open Joint-Stock Insurance Company, "Renessance Strakhovanie" Group" Ltd., "MSK" OJSC, "Ingosstrakh" Open Joint-Stock Insurance Company, "MSK-Standart" Closed Joint-Stock Insurance Company, "Spasskie Vorota" Insurance Group" CJSC, "Rosgosstrakh" OJSC, "SOGAZ" OJSC, "Soglasie" Insurance Company" Ltd., "Rossia" Open Joint-Stock Insurance Company, "VSK" OJSC, "ROSNO" OJSC, which resulted (could have resulted) in imposing mandatory additional civil motor-vehicle liability insurance upon borrowers (security providers);

Also the Bank of Moscow" Joint-Stock Commercial Bank" OJSC concluded agreements and (or) agency contracts with the following insurance companies: "Renessance Strakhovanie" Group" Ltd., "MSK" OJSC, "Alpha-Strakhovanie" OJSC, "MSK-Standart" Closed Joint-Stock Insurance Company, "Spasskie Vorota" Insurance Group" CJSC, "ROSNO" OJSC, which resulted (could have resulted) in imosing mandatory insurance upon borrowers (security providers):

- life and disability risk insurance for the period of the credit agreement extended by one month, as well as fixing а the amount of coverage increased by 10% loan indebtedness;

- the risks of losing the right of ownership for the property, not related to its loss or destruction.

The Sverdlovsk OFAS Russia issued a determination to the "Bank of Moscow" Joint-Stock Commercial Bank" OJSC to stop the antimonopoly violation by introducing amendments to the Consumer Crediting Programme, the Auto Loan Programme, and the Mortgage Credit Programme of the "Bank of Moscow" Joint-Stock Commercial Bank" OJSC, which would exclude imposing agreement conditions irrelevant to the subject of the agreement upon the borrowers (security providers) and disadvantageous for them, within 20 days upon receiving the determination but no later than 15th October 2009.

On 3rd March 2010, the Sverdlovsk Regional Arbitration Court held a hearing and dismissed the claim "Alpha-Strakhovanie" OJSC on invalidating the decision and determination issued by the Sverdlovsk OFAS Russia.

The Appeal Court confirmed validity of the decision of the Sverdlovsk OFAS Russia regarding the concerted nature of actions between the Bank and insurance companies.