The Namibian Competition Commission (NaCC) has fined Momentum Short-Term Insurance Namibia and Santam a total of N$5.7 million for engaging in anti-competitive conduct.
According to an investigation by the competition watchdog, the insurance giants enjoyed preferential rights and sole distribution of rights thus waiving excess fees and rebates thereby contravening the Act, when they entered into these agreements.
As part of the fine, Santam is expected to pay a total settlement amount of N$5 million – N$3.5 million being a pecuniary penalty and N$1.5 million being a portion of the Plaintiff’s costs incurred as a result of the investigation and subsequent process.
Momentum will pay a total settlement of N$750,000, with N$500,000 being a pecuniary penalty and N$250,000 being the Plaintiff’s costs incurred as a result of the investigation and subsequent process.
“Although the two parties disputed the factual findings and interpretation of the Act by the Commission, they admitted that the conduct constituted an unintended contravention of Section 23 of the Act. Therefore, the parties agreed to settle the matter on the terms and conditions set out in the consent agreements,” NaCC Director for Enforcement, Exemptions & Cartels Paulus Hangula said.
The NaCC is a government entity entrusted with ensuring that all entities operating in Namibia comply with the Competition Act to promote a fair and competitive market.
