MCCAA investigating de-facto monopoly in Y-plate insurance industry

The Malta Competition and Consumer Affairs Authority (MCCAA) is looking into the practice of insurance agencies in relation to their coverage of Y-plate vehicles. 

Responding to MaltaToday's questions, the MCCAA stated that, "The Competition Office are looking into the matter and sent the necessary questions to the relevant market players to assess the alleged reported conduct in question."

In August, this newspaper was informed that buying insurance for Y-plate vehicles has become nearly impossible for cab drivers unless they transfer their personal car insurance to the only company that is selling insurance for Y-plate vehicles. 

The MCCAA was responding to questions related to Argus, the only insurance company on the island that is currently insuring Y-plate vehicles. One cab driver who had spoken to this newspaper claimed that Argus would not take him on as a new client, unless he transferred his personal car insurance with the company as well.

Meanwhile, Argus had confirmed that in order to purchase insurance, clients must follow a set of rules, one of them being that the client must bring “other business to the company.”