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India: Insurers applaud CCI crackdown on carmakers

 |  September 3, 2014

Insurance companies are applauding the decision by the Competition Commission of India to crack down on automakers for anticompetitive practices that cost car insurance companies and consumers, say reports.

Fourteen car companies were fined last week by the CCI after they were found to have restricted entry of independent car repairers into the market. The actions kept repair costs artificially high, the watchdog said.

India-based Tata Motors, as well as Volkswagen India, BMW India, Ford India, Mercedes Benz, Nissan and others were penalized.

Cholamandalam MS General Insurance Company publically praised the CCI for the sanctions, telling reporters that “if more independent repairers come into the market and the component makers are able to sell them at more competitive prices then it is good for the vehicle owners as well as the general insurers.”

Full content: Economic Times of India

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