P. R. Ganesan vs. Cholamandalam MS General Insurance Company Limited (Competition Commission of India)
The Competition Commission of India (CCI) recently closed a case filed by P. R. Ganesan against Cholamandalam MS General Insurance Company Limited (OP-1) and Central Bank of India (OP-2). The informant, owner of a micro, small, and medium enterprise (MSME) in precision engineering, alleged contraventions of Sections 3(4) (anti-competitive agreements) and 4 (abuse of dominant position) of the Competition Act, 2002. The core of the dispute stemmed from an insurance claim related to a devastating flood in Ambattur Industrial Estate in Chennai on December 2, 2015, which severely damaged the informant’s business, including machinery, goods, and documents.
The informant had availed credit facilities from Central Bank of India (OP-2), which were insured by Cholamandalam MS General Insurance (OP-1). Following the flood, the informant struggled to obtain copies of his insurance policy documents from both OPs, causing a significant delay of 62 days in filing his claim. The informant alleged that OP-1 then unfairly rejected his claim due to late submission and did not compensate him for the full losses, asserting that OP-1 and OP-2 were colluding to deny legitimate claims. He contended that OP-1, being part of the large Murugappa Group, held a dominant position in the “market for providing general insurance service in Chennai,” benefiting from the group’s reputation and being the preferred insurer for OP-2. The informant sought an investigation into OP-1’s alleged abuse of dominance and both OPs’ tie-in arrangement, claiming it stifled competition. Additionally, the informant sought interim relief due to financial distress, including medical needs for his wife and preventing the auction of his residential property, which had been pledged to repay creditors.
