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CCI imposed Rs 671 crore penalty on 4 state-run insurance companies

Jul 17, 2015 11:55 IST

The Competition Commission of India (CCI) on 17 July 2015 imposed penalty of 671.05 crore rupees upon four Public Sector Insurance Companies.

The penalty was imposed for manipulating the bidding process initiated by Government of Kerala for selecting insurance service provider for Rashtriya Swasthya Bima Yojna for the years 2010-11, 2011-12 and 2012-13. The beneficiaries of the schemes were BPL and poor families.

These companies and their penalties are National Insurance (162.80 crores rupees), New India Assurance (251.07 crores rupees), Oriental Insurance (100.56 crores rupees) and United India Insurance (156.62 crores rupees).

The orders were passed on anonymous information in Suo Moto case received by CCI under Section 19(1) of the Competition Act, 2002 against the four Insurance companies. The information alleged contravention of the provisions of section 3 of the Act which deals with anti-competitive agreements including bid rigging.

The Commission noted the impugned conduct of these companies to have resulted in manipulation of the bidding process in contravention of the provisions of section 3(1) read with section 3(3)(d) of the Act.

In its order, the fair trade regulator also asked them to cease and desist from anti-competitive.

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