Government imposes 671cr penalty on four insurance companies

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New Delhi: According to a release on its website, The Competition Commission of India as imposed a fine of Rupees 671.05 crore on four public sector insurance companies.

The insurance companies which have been fined are National Insurance Co. Ltd., New India Assurance Co. Ltd., Oriental Insurance Co. Ltd. and United India Insurance Co. Ltd. They have been fined for manipulating the bidding process initiated by Government of Kerala for selecting insurance service provider for Rashtriya Swasthya Bima Yojna for the years 2010- 11, 2011-12 and 2012-13.

The Commission had received anonymous information against the four firms alleging contravention of the provisions of section 3 of the Act which deals with anti-competitive agreements including bid rigging.

Penalties of Rs 162.80 cr have been leveled on National Insurance Co. Ltd, 251.07 cr on New India Assurance Co. Ltd, 100.56 crore on Oriental Insurance Co. Ltd and 156.62 crore on United India Insurance Co.

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