NaCC, insurer reach settlement
‘Unintended contravention of Act’
In terms of the settlement agreement, Hollard agreed to pay a total settlement amount in the sum of N$3 million to the NaCC.
Jo-Maré DuddyThe Namibian Competition Commission (NaCC) and Hollard Insurance Company of Namibia Ltd have entered into a consent agreement following the watchdog’s investigation in 2017 and 2018 into alleged anti-competitive behaviour involving various short-term insurance companies and automotive windscreen retailers.
In a statement issued by the NaCC late Friday, the watchdog said it entered into a consent agreement with Hollard on 30 May this year.
As far as admission of liability is concerned, Hollard disputes the factual findings and interpretation of the NaCC Act.
“The Commission’s investigation found that the respondent contravened Section 23(1) read with sections 23(2)(b), 23(3)(e) and 23(3)(f) of the Act 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 a copy of the Gazette in which it expressed its intention to submit the consent agreement with Hollard to the High Court of Namibia for confirmation as an order of the court.
However, for the purposes of settlement, Hollard admits that its conduct constituted “an unintended contravention” of Section 23(1) read with sections 23(2)(b) and 23(3)(f) of the Act, Gazette states.
Terms
In terms of the settlement agreement, Hollard agreed to pay a total settlement amount in the sum of N$3 million: a pecuniary penalty of N$2.1 million and N$900 000 to cover part of the NaCC’s costs arising from its investigation.
According to the Gazette, Hollard recorded that it has ceased the conduct and shall take all necessary steps to ensure that it does not engage in the conduct in future.
In addition to the above, Hollard has developed and implemented 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 NaCC Act.
A copy of the programme must be supplied to the NaCC and Hollard must produce compliance progress reports. The agreement, upon confirmation as an order of the court, shall be in full and final settlement of the investigation and the High Court proceedings and shall conclude the proceedings under case, the Gazette states.