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Hollard fined N$3m for uncompetitive dealings by NaCC

June 17, 2022

Hollard Insurance Company of Namibia is expected to fork out N$3million in fines after entering into a consent agreement with the Namibia Competition Commission (NaCC) regarding a 2017 investigation into uncompetitive exclusive dealing allegations.

Hollard was among seven short-term insurance companies that were being investigated by the NaCC for entering into a vertical relationship with contracted automotive windscreen retailers, by offering them preferential rights, sole distribution rights and waiving of excess fees.

The NaCC investigations had also found that the insurance companies had also entered into agreements that provided for a rebate system, which allowed them to receive rebates in return for having particular proportions of their business referred to the concerned windscreen retailers within a particular time period.

“In settlement of the investigation by the Commission, the Commission and Hollard on 30 May 2022 entered into a Consent Agreement in terms of section 40 of the Act. Hollard admits that its conduct constitutes an unintended contravention of section 23 of the Act,” the NaCC said in a notice.

“By entering into exclusive agreements with contracted retailers over non-contracted retailers which amounts to, in the opinion of the Commission, limiting market access or outlets and applying dissimilar conditions to equivalent transactions.”

According to terms of the agreement, Hollard will be expected to develop and implement a compliance programme on competition law in Namibia to ensure that its employees, management, directors or any other party acting on its behalf does not engage in any conduct that is prohibited in terms of the Act.

“The Respondent shall act in accordance with the terms of this Consent Agreement and shall implement the following measures: Review all its policies, practices and operations by way of internal audits. Invest in the education of its staff on an ongoing basis on matters pertaining to competition law compliance in Namibia. Actively engage the Commission by obtaining advisory opinions to assist in identifying and implementing best practices. Implement a zero-tolerance policy towards anti-competitive behavior by its staff.”

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Last modified on Monday, 20 June 2022 18:10

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