CCI Probing Maruti Suzuki Car Insurance Allegation

The Competition Commission of India (CCI) is looking into allegations that Maruti Suzuki pushes buyers to purchase insurance policies offered by the company, based on an anonymous complaint filed in June 2019.

According to the compliant, this resulted in customers paying more compared to other options in the market.

The CCI is investigating if Maruti engaged in practices like so-called “tie-in arrangements” in which a car maker promotes preferred suppliers of goods like lubricants or insurance, which are anti-competitive and limit consumer choices.

Incidentally, Maruti is already being probed by the CCI about allegations that the carmaker limits discounts its dealers can offer, which is a prohibited anti-competitive practice, which hurts consumers.

If the CCI decides to launch a wider probe into the new complaint, it could ask its investigation unit to wrap it into the ongoing case into Maruti's discounting practices, or order a fresh investigation.