On 11th August, 2022, the Commission conducted investigations on alleged anticompetitive business practice by United General Insurance (UGI) following information the Commission came across on the market.
Specifically, the Commission came across information that suggested that UGI, through its broker, engages in anticompetitive business practice by restricting competition in the provision of Toyota Plus Insurance Policy to purchased Toyota Malawi motor vehicles. This appeared to be in contravention of Section 32(1) of the CFTA.
Investigations established that UGI are in an agreement with Toyota Malawi and CFAO to provide an all-inclusive comprehensive Toyota Plus Insurance Policy to customers who have not yet identified a motor vehicle insurance policy upon purchasing a vehicle from Toyota Malawi.
The arrangement is for purposes of complying with the law and does not force customers to subscribe to it nor restrict any other players from offering the service.
The Commission noted that there was no evidence that suggested that UGI engaged in anti-competitive business conduct.
Therefore, the Commission resolved that the case against UGI be closed.