Malaysia Competition Commission issues final decision against General Insurance Association of Malaysia and its 22 members for infringement of section 4(2) of Competition Act 2010
29 October 2020
On 14 September 2020, the Malaysia Competition Commission (“MyCC”) issued its final decision against the General Insurance Association of Malaysia (“PIAM”) and its 22 members for violating section 4 of the Competition Act 2010 in respect of the application of trade discounts on automotive parts prices and hourly labour rates for motor vehicle repairs by workshops under the PIAM Approved Repairers Scheme (PARS). As a result, MyCC imposed a total financial penalty of RM173 million on the insurance companies. In computing the financial penalty, MyCC took into consideration the impact of the Covid-19 pandemic on the economic situation in Malaysia and consequently, granted a 25% reduction on the financial penalty initially set out in its proposed decision. MyCC also directed the insurance companies to cease and desist from implementing the agreed parts trade discount and hourly labour rates, and for such discounts and rates to be determined independently by individual insurers and workshops.