Santam, Momentum reach settlement with NaCC

Insurance giants Santam Namibia Limited and Momentum Short-Term Insurance Limited have respectively, entered into settlement agreements with the Namibian Competition Commission (NaCC) after investigations into alleged anticompetitive behaviour concluded that these entities were engaged in exclusive agreements.

The NaCC resolved that Santam and Momentum contravened sections of the Namibian Competition Act by entering into exclusive agreements which affords them preferential rights, sole distribution rights, waiving of excess fees and rebates.

Although Santam and Momentum disputed the factual findings and interpretation of the Competition Act by the NaCC, they admitted that the conduct constituted an unintended contravention of section 23 of the Act, the NaCC said in a statement.

Santam entered into a consent agreement with the NaCC to pay a total settlement amount of N$5 million – N$3.5 million in a pecuniary penalty and N$1.5 million of the NaCC’s costs incurred as a result of the investigation and subsequent process.

Momentum entered into a consent agreement with the NaCC for a total of N$750 000 – a pecuniary penalty of N$500 000 and N$250 000 for purposes of covering part of the NaCC’s costs arising from its Investigation.