Business Reporter
The Namibia Competition Commission, in terms of section 41 of the Competition Act, 2003, has given notice that it intends to submit to the Court for confirmation as an order of the Court, a consent agreement entered into with Momentum Short-Term Insurance Limited on 30 August 2024, which will see Momentum paying N$1 million for price fixing in the vehicle insurance segment.
Vitalis Ndalikokule, Chief Executive Officer (CEO) and Secretary to the Namibian Competition Commission (NaCC), explained in a gazetted notice that the Consent Agreement, upon confirmation as an order of the Court, shall be in full and final settlement of the investigation in respect of Momentum Short-Term Insurance Limited.
The Commission, on or about 24 November 2016, initiated an investigation against Old Mutual Short-Term Insurance Company, Outsurance Insurance Company Limited, Phoenix Assurance Namibia Limited, and Momentum Short-Term Insurance Limited (jointly referred to as “the Respondents”).
The Commission, on or about 27 April 2018, gave notice of its preliminary decision (Form 6 Notice) that section 23(1) of the Competition Act had been contravened by the Respondents. On or about 21 August 2019, the Commission issued a Form 7 Notice advising the Respondents that it planned to act in terms of section 38 of the Act and providing reasons for the Commission’s decision. The Form 7 Notice was published in the Government Gazette on 5 September 2019.
In settlement of the investigation by the Commission, the Commission and Momentum, on 30 August 2024, entered into a Consent Agreement in terms of section 40 of the Act.
“The Commission accordingly gives notice that it intends to submit the attached Consent Agreement with Momentum to the High Court of Namibia for confirmation as an order of the Court, as contemplated in section 40(1) of the Act,” Ndalikokule said.
He added that the Commission’s investigation found that Momentum had contravened section 23(1), read with sections 23(2)(a) and 23(3)(a) of the Act, by setting the maximum mark-ups afforded by insurance companies to panel beaters on replacement motor vehicle parts used by such panel beaters in the repair of insured motor vehicles, and the labour rates paid by such insurance companies to panel beaters for panel beating work on insured motor vehicles.
“Momentum denies that it has contravened the provisions of the Act. However, for the purposes of settlement, Momentum will nevertheless ensure that its seniors are made aware of the Commission’s findings against other short-term insurers as part of its general competition law awareness training and have only agreed to settle the case to avoid incurring further costs… The Respondent records that it has, in any event, ceased the conduct and shall take all necessary steps to ensure that it does not engage in the conduct under paragraph 3 herein in the future,” Ndalikokule said.
He added that, in addition to this, Momentum has agreed 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 do not engage in any conduct that is prohibited in terms of the Competition 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 educating its staff members continuously on competition law compliance in Namibia, and actively engage the Applicant (NaCC) by obtaining advisory opinions to assist in identifying and implementing best practices,” Ndalikokule said.
He added that, in addition to this, Momentum will pay N$1 million and implement a zero-tolerance policy towards anti-competitive behaviour by its staff members.
The amount becomes payable upon confirmation of this Consent Agreement as an order of the Court.
PAY UP: Momentum Short-Term Insurance. Photo: contributed.
