MyCC proposes financial penalty of RM213m on 23 general insurers

KUALA LUMPUR: The Malaysia Competition Commission (MyCC) has proposed to impose a financial penalty of RM213.45mil on all 23 general insurers in the country.

Allianz Malaysia Bhd said on Friday, its subsidiary, Allianz General Insurance Company (Malaysia) Bhd (AGIC), was among the insurers – who are members of Persatuan Insurans Am Malaysia (PIAM) – alleged to have infringed one of the prohibitions under Part II of the Competition Act 2010 (CA)

It said the financial penalty resulted from MyCC’s investigation into the alleged infringement in the agreement between PIAM and the Federation of Automobile Workshop Owners' Association of Malaysia (FAWOAM) on trade discount rates for parts for certain vehicle makes and labour hourly rates for PIAM approved repairers scheme workshops. 

“These rates were applied by AGIC pursuant to a members’ circular issued by PIAM, which arose from Bank Negara Malaysia’s directive to PIAM to engage FAWOAM to resolve the issues of parts trade discounts and labour hourly rate,” it said.

Allianz said the proposed decision included a proposed financial penalty of RM213.45mil on all the 22 general insurers. 

Allianz said its general isurer AGIC, as one of the members of PIAM, will have a share of RM27.48mil of the proposed penalty. 

It said the proposed decision was not final and AGIC, in consultation with its legal advisers would take all appropriate actions to defend its position that it has not infringed Section 4(2)(a) of the CA.