HOLLARD Insurance Namibia was fined N$3 million for unfair practices by the Namibian Competition Commission (NCC).
The fine followed after investigations by the NCC discovered that certain insurance companies and windscreen retailers were engaged in a practice of exclusive dealing.
Hollard admitted its guilt and reached a settlement agreement with the commission, in which the insurance company is expected to pay N$3 million.
Exclusive agreements are agreements in which parties promise to deal exclusively with only certain parties, and not with their competitors.
According to the commission, the investigations looked at Santam Namibia, Hollard Insurance Company, Old Mutual Short-Term Insurance Company, and Momentum Short-Term Insurance, formerly known as Quanta Insurance.
It was revealed that the insurance companies entered into exclusive agreements with various windscreen retailers.
Investigations were concluded in July 2018 and the matter was referred to court.
The NCC indicated that Hollard contravened parts of the Competition Act by entering into exclusive agreements which afford preferential rights, sole distribution rights, waiving of excess fees and rebates to them.
Hollard admits that its conduct constitutes an unintentional contravention of section 23 of the Competition Act, and said it is fully committed to honouring the terms and conditions of the agreement.
These include a monetary penalty of N$2,100,000 and an additional amount of N$900,000 to cover part of the commission’s costs arising from the investigations it carried out.
Photo for illustrative purposes only.