Old Mutual Short-Term Insurance Company (Namibia) has entered into two settlement agreements with the Namibian Competition Commission (NaCC) and agreed to pay N$6 million after the insurer was found to have contravened the Competition Act in two separate investigations.
“The first investigation revealed that the insurer entered into exclusive agreements with contracted windscreen retailers, which amount to limiting market access or outlets, as well as applied dissimilar conditions to equivalent transactions. An amount of N$2.2 million was imposed on OMSIC of which N$1.6 million serves as a pecuniary penalty and an additional amount of N$600 000 for purposes of covering part of the Commission’s costs arising from its Investigation,”
In the second investigation the Commission found OMSIC to have engaged in the setting of mark-ups that the panel beaters should charge for repairs of vehicles insured by OMSIC as well as the setting of maximum rates that panel beaters should charge for their labour.
“An amount of N$3.8 million was imposed on OMSIC, apportioned as a pecuniary penalty of N$2.8 million and an additional amount of N$1 million for purposes of covering part of the Commission’s costs arising from its investigation.”
The investigation stems from a probe initiated against Santam Namibia, Old Mutual Short-Term Insurance Company, Momentum Short-Term Insurance Ltd, previously known as Quanta Insurance and PG Glass Namibia by the NaCC, which found that the parties entered into exclusive agreements, with windscreen retailers, which affords preferential rights, sole distribution rights, waiving of excess fees and rebate in contravention of the Competition Act.
Additionally, the NaCC had also launched an investigation, running from November 2016 to August 2019, against OMSIC; Outsurance Insurance Namibia, Phoenix Assurance Namibia, Momentum and almost 70 panel beaters for setting maximum mark-ups and labour rates that panel beaters could charge for the repair of insured vehicles.
Old Mutual Namibia’s Acting Executive: Marketing, Transformation and Customer Strategy, Ashanti Manetti said the insurer,” believes that settling the matters outside of court proceedings is in the best interest of all stakeholders. As a responsible business always acting in the best interest of our customers, we remain committed to ensure good governance, whilst strengthening our processes with increased focus on our customers, our environment, and communities in which we operate. OMSIC has further committed to following the subsequent procedures as set out in the Competition Act.”
