MyCC imposes RM213.45m penalty on general insurers

PETALING JAYA: Allianz Malaysia Bhd’s general insurance division and 21 other general insurers will take action to defend themselves against the Malaysia Competition Commission’s (MyCC) decision to fine the members of Persatuan Insurans Am Malaysia (PIAM) RM213.45 million for infringement of anti-competition laws.

Allianz Malaysia told Bursa Malaysia in a filing on Friday that Allianz General Insurance Co (Malaysia) Bhd’s share of the proposed penalty, delivered by MyCC via a letter dated Feb 22, 2017, is RM27.48 million.

The proposed decision is in respect of MyCC’s investigation regarding the agreement reached between PIAM and the Federation of Automobile Workshop Owners’ Association Of Malaysia (Fawoam) on trade discount rates for parts of certain vehicle makes and labour hourly rates for workshops under the PIAM Approved Repairers Scheme.

The said rates were applied 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 rates.