Thanks to the innovations of the Bank of Russia termination of a life insurance contract on a loan in certain situations it is carried out quickly and in favor of the borrower. Promoting programs with low rates and compulsory insurance is a marketing move by banks. Higher interest without insurance is often the best deal. What to do if the client unknowingly or under duress agreed to additional services?
Legislation on loan insurance
The Civil Code of the Russian Federation (Article 958) defines the right of clients of insurance companies to return insurance if an insured event does not occur and the company’s risk has decreased. Article 958 also determines the possibility of canceling the contract at the request of the policyholder. In this case, the client will not be able to return the paid insurance premium unless it is specified in the agreement.
Amendments made to Law No. 353-FZ deprived credit companies of the ability to force borrowers to take out insurance. The restriction applies only to contracts concluded between an individual and an insurance organization. The new law, in addition to refusing the insurance procedure, allows you to disagree with various additional services of financial institutions.
What is a "cooling off period"
Cooling period is the minimum period introduced by the Central Bank of Russia, during which the consumer of services has the right to cancel the insurance contract. The client submits an application and receives a refund of the insurance overpayment. Main condition: absence of insured events during this period.
From 01/01/2018, the duration of the period increased from 5 to 14 days. The period may be extended by several more days at the discretion of the insurer. After receiving the application, the insurer must return the funds within 10 days. The amount of the premium depends on the period covered by the insurance. If it is included in the body of the loan, the amount is written off, reducing the total amount of debt.
The insurance premium is refunded in full if the client cancels the agreement within 14 days after signing it and before the insurance begins. Part of the premium will be withheld if termination occurs after the entry into force of the insurance contract. The opportunity to terminate the deal after the cooling-off period only arises when it is provided for in the contract.
What types of insurance are refundable?
Insurance services provided in the lending sector may be voluntary or mandatory. Mandatory procedures include car insurance when taking out a car loan and real estate when applying for a mortgage.
The policyholder has the right to refuse additional services of the following types:
- health, life, property insurance;
- pension, investment, savings insurance;
- risk insurance, for example, a policy in case of layoffs, etc.
The client will be able to reimburse the costs of insurance assigned when applying for a credit card, cash loan, or consumer loan. The result of the return procedure depends not only on the type of lending, but also on the option for providing services.
Financial institutions offer borrowers two types of insurance:
- obtaining an individual policy;
- participation in a collective insurance program (substitution of concepts practiced by banks to circumvent legislative norms for the return of insurance).
Until 2018, companies voluntarily returned insurance premiums within 14 days only if they had an individual policy. Once the group insurance was received, the deal could not be canceled and the client could not return anything. In 2018, the Supreme Court of the Russian Federation recognized that insurance programs must provide conditions for refusal. In addition, the Supreme Court confirmed that a consumer has the right to benefit from a cooling-off period when enrolling in an insurance program.
Attention! If the bank refuses to return the insurance payment within 14 days, citing the refusal by the fact that this is impossible after joining the insurance program, the service consumer has the right to file a lawsuit.
Insurance refund
Features of the return procedure during the cooling period
Borrowers have the right to terminate the insurance agreement within 14 days without the assistance of a lawyer. According to the law, the bank or insurer must transfer funds no later than 10 days after receiving the request. To receive a refund during the cooling-off period you must:
- take into account the conditions specified in the contract;
- send an application to refuse the service to the insurer no later than 14 days (this period does not depend on the moment of payment of the insurance premium).
Example from practice. A citizen came to a financial institution to get a loan at 14% per annum. A bank representative explained that in order to set a lower rate, it is necessary to guarantee a refund in case the client gets sick or dies. If you refuse insurance, the percentage will be increased to 20%.
The borrower insured life and health for 20 thousand rubles. The next day I wrote a claim to the bank and sent it by email. The document indicated that if it is not considered or refused, it will send a claim to the Central Bank. A couple of days later he was invited to the office to receive money, which was immediately transferred to his account. At the bank, the client wrote an application for early repayment. The debt decreased by 20 thousand rubles.
You can contact not a bank, but an insurance organization, the details of which are given in the policy. If the policyholder does not wait for an answer or receives a refusal, it is necessary to prepare a lawsuit. In this case, the law will be on the side of the borrower. The client will be able to “sue” not only the insurance assigned by the policyholder or the bank, but also penalties and compensation for moral damage. The court will oblige the company to pay a fine and reimburse the costs of a lawyer.
Need to know! Before signing a loan agreement, you should carefully read its contents and study the Insurance Rules. Many banks provide for an increase in rates after cancellation of insurance.
Refund of insurance on outstanding loan after expiration of cooling period
The new law does not apply to policies with a validity period of more than 14 days. In this case, it is recommended to follow the rules specified in the insurance contract. Large banks, for example, Sberbank, VTB 24, Home Credit, still allow borrowers who missed the cooling period to refuse life insurance.
Insurers provide in the documentation conditions for the return of funds paid, taking into account the period used. As a rule, costs are deducted from the amount in the amount of 25 to 90%. If there is no such provision in the contract, the paid fee is non-refundable. Then it will be impossible to return the invested funds, since in fact the client voluntarily agreed to the service.
Life insurance does not apply to the cases prescribed in Art. 958 of the Civil Code of the Russian Federation, which provides for the return of insurance payments. You can refuse insurance at any time, but return the premium only if the insurer makes a positive decision. If the borrower missed the cooling period and does not plan to repay early, then you should not expect a refund of the insurance premium.
Waiver of insurance for early repayment
The insurance contract is concluded for the period of loan repayment. The consumer has the right to compensation for the amount paid for insurance services. Since the responsible borrower paid off the debt, the bank's risk decreased and the insured event did not occur.
Example. The couple took out a loan for 600 thousand rubles. A Sberbank employee ordered insurance for 50 thousand rubles. under the pretext: “If you don’t complete it, you will get a refusal.” The debt was repaid ahead of schedule; of course, they did not have time to submit a request during the cooling period. They brought a statement and insisted on their position. The head of the credit department accepted the request. Within 10 days, compensation in the amount of 30 thousand rubles arrived in the account.
An application for cancellation of insurance must be submitted:
- after complete closure of the debt (as in the example presented);
- together with an application for early repayment (the insurance amount can be used to pay the remaining debt).
Early termination of a life insurance contract allows the borrower to return the overpayment for insurance under the following conditions:
- in the contract (policy), in the Insurance Rules of the organization there is a clause on partial refund of the insurance premium;
- Insurance payments were made periodically along with regular loan payments.
If the above documents contain a clause on the return of insurance, the bank is obliged to pay it to the client. The insurer does not intend to transfer the money or has returned a small part - you can safely go to court. It is more difficult to return an insurance premium paid in a lump sum, but it is possible if there is a corresponding clause in the policy and the Rules.
Attention! When applying for a loan, the borrower confirmed with his signature that the bank familiarized him with the Insurance Rules, which means the court will take this into account. Everything written in this document will be used to make a judicial decision.
Why is it impossible to sue for overpayments under “imposed insurance”?
In the judicial practice of 2010-2015, there were often cases where the policyholder did not have time to formalize the refusal of insurance, and went to court with a demand to return the overpayment under the imposed insurance contract.
Example. The borrower took out 300 thousand rubles on credit for 4 years. Insurance was taken out for the entire period for 60 thousand rubles. The credit manager did not inform the client that a significant amount was spent on life insurance. In addition to the loan agreement, the citizen was given papers to sign, in which insurance conditions were printed in small print.
A month later, the borrower learned that he had the right to refuse insurance. He wrote a claim to the bank and received a written refusal. The citizen filed a claim and demanded:
- invalidate the loan agreement;
- recover the amount of the insurance premium from the bank;
- recover penalties and compensation for causing moral damage.
The court recognized the fairness of the requirements.
Many similar cases in the courts a few years ago were successful, since consumer rights were clearly violated. But loan and insurance agreements have been reworked over the years. In 2019, the chances of canceling the imposed insurance and returning the overpayment are practically reduced to zero. Insurance is now offered openly.
Termination of the insurance contract : step-by-step instruction
The consumer has the right to cancel the policy and demand compensation when contacting the insurance company or bank. A claim or statement must be made in writing, handed over personally to an employee of the organization, sent by mail or to an electronic mailbox. After an illegal refusal, you can write to the Central Bank or file a lawsuit.
Table - Stages of termination of an agreement with an insurer
| 1 step. Preparation of a package of documents | Write an application, make copies of your passport, insurance contract, receipts for payment of contributions (other papers to confirm the legality of the request). Sample applications are presented on banks' websites. You can draw up a document in any form or take a ready-made form from the department. The application must be prepared in two copies. |
| Step 2. Contacting an insurance company with a claim | If it is impossible to contact the insurer, the client has the right to submit a request to the bank. Credit managers should help carry out the termination procedure and submit documents to the insurer. To protect your rights when filing an application you must:
|
| Step 3. Waiting for the insurer's decision | The company is obliged to respond to the client’s request within 10-14 days. Having no debt increases the likelihood of a positive response. A written agreement is drawn up with the insurance company to cancel the contract. Payments are transferred or the debt is recalculated. |
| Step 4 Preparation of documents for court | After receiving an unfounded refusal, you can go to court. In addition to the already collected papers, filing a claim will require a written refusal from the bank. It is recommended to record negotiations with employees of a banking organization on a voice recorder. If the bank has not issued the policy in hand, it is worth noting this violation in the statement of claim. |
Personal appeal speeds up the process of terminating the contract. If it is impossible to visit the insurer, you must send copies of documents by mail, fax, or email. Attach certified copies of documents to the application and send to the address of the main office of the insurance company. The day the request is submitted will be considered the day the letter is sent. The notification received may be used as evidence in court.
How to make an application
Application for termination of a life insurance contract written in free form. A standard sample can be found on the websites of banks or insurers.
The application must include the following information:
- full name of the financial or insurance company;
- information about the applicant (full name, passport details);
- information about the insurance contract - date of conclusion, expiration of its validity, details and policy number;
- indication of the reason for termination of insurance (for example, early repayment of debt);
- request to terminate the agreement and return money for the unused period. The document must indicate the method of refund, card number, account to which the client makes monthly payments.
- Date and signature.
After submitting a claim or application, it is recommended to periodically inquire by telephone about the insurer’s decision and about setting the date for the transfer of the refund. When the funds are transferred, you must prepare an application for partial repayment of the debt.
The form of the document “Borrower’s Life and Disability Insurance Agreement” belongs to the heading “Property, Health, Liability Insurance Agreement”. Save the link to the document on social networks or download it to your computer.
Borrower's life and disability insurance contract
[enter as required] [day, month, year]
[Name of the insurer], hereinafter referred to as the "Insurer", represented by [position, surname, first name, patronymic], acting on the basis of [charter, regulations, power of attorney], on the one hand, and [F. Acting Insured], hereinafter referred to as the “Insured”, on the other hand, and together referred to as the “Parties”, have entered into this agreement as follows:
1. The Subject of the Agreement
1.1. Under this agreement, upon the occurrence of an insured event, the Insurer undertakes to pay insurance compensation to the Beneficiary within the limits of the Insured's outstanding debt under the mortgage agreement N [fill in as required] dated [date, month, year] (hereinafter referred to as the mortgage agreement).
1.2. The object of insurance is the life and working capacity of the Insured.
1.3. The insured appoints as the Beneficiary under this agreement the mortgagee under the mortgage agreement, who is the creditor for the obligations secured by the mortgage (hereinafter referred to as the Lender Bank).
2. Risks subject to insurance
2.1. Insured events under this contract are:
2.1.1. Death of the Policyholder for any reason.
2.1.2. Temporary loss of ability to work by the Insured.
2.1.3. Complete loss of ability to work by the Insured for any reason with the assignment of disability.
3. Sum insured
3.1. The amount within which the Insurer undertakes to pay insurance compensation to the Beneficiary upon the occurrence of an insured event (insured amount) is determined in the amount of the issued mortgage loan, taking into account the interest rate on the loan.
3.2. The amount of the loan issued is [value] rub.
3.3. When an insured event occurs, the insurance compensation is paid to the Beneficiary (Lender Bank) within the limits of the borrower's loan debt on the loan as of the date of the insured event in the amount of actual damage, but not more than the insured amount. The remaining part of the insurance compensation is paid to the Policyholder.
4. Insurance period
4.1. The insurance period is equal to the validity period of the mortgage agreement.
5. Insurance premium
5.1. In order to determine the amount of the insurance premium payable under this agreement, the insurance tariff developed by the Insurer is applied, which is [value]% of the insured amount per year.
5.2. Insurance premiums are paid annually [indicate payment deadline] until the end of the term of this agreement.
5.3. When the payment deadline approaches, the Lender Bank informs the Insurer of the balance of the Insured-Borrower's debt and the insurance premium is calculated based on this amount.
5.4. The amount of insurance premiums decreases annually along with the loan debt.
6. Obligations of the Parties
6.1. The policyholder is obliged to immediately notify the Insurer or his representative of the occurrence of an insured event by submitting a written statement about the occurrence of an insured event.
6.2. The heirs of the Policyholder or the Beneficiary must notify the Insurer of the death of the Policyholder.
6.3. The Insurer does not have the right to disclose information received by it as a result of its professional activities about the Insured and the Beneficiary, about the health of the Insured, as well as about the property status of these persons.
7. Grounds for exemption of the Insurer from payment of insurance compensation
7.1. The insurer is exempt from paying insurance compensation or the insured amount if the insured event occurred as a result of:
The intent of the Policyholder or Beneficiary;
Exposure to a nuclear explosion, radiation or radioactive contamination;
Military operations, as well as maneuvers or other military events;
Civil war, civil unrest of all kinds or strikes.
8. Final provisions
8.1. This agreement comes into force upon payment of the insurance premium.
8.2. The insurance stipulated by this agreement applies to insured events occurring after the entry into force of the agreement.
8.3. This agreement has been drawn up in two copies, one for each of the Parties.
8.4. In cases not provided for in this agreement, the Parties are guided by the current legislation of the Russian Federation.
9. Details and signatures of the Parties
Insurer Insured
[fill in as needed] [fill in as needed]
-
It is no secret that office work negatively affects both the physical and mental state of the employee. There are quite a lot of facts confirming both. -
Every person spends a significant part of his life at work, so it is very important not only what he does, but also with whom he has to communicate. -
Gossip in the workplace is quite commonplace, and not only among women, as is commonly believed.
Example No. 1
In ___________________ (name of bank)
_____________________(Address of the bank)
Manager (director)
__________________ (FULL NAME)
In ___________________ (name of insurance company)
_____________________ (Insurance address)
To the director
__________________ (FULL NAME)
From _________________________ (your full name)
___________________________ (Your address)
Statement
A loan agreement No. ____________ dated ____________ was concluded between me and the Bank, according to which I received a loan in the amount of ____________. When concluding a loan agreement, a bank employee gave me an application to sign to join the collective insurance program (or an insurance agreement), and explained that a prerequisite for obtaining a loan is the conclusion of a life insurance agreement against accidents and illnesses. When applying for loan insurance, I was not given the right to choose an insurance company at my own discretion.
The insurance premium under the life insurance contract against accidents and illnesses amounted to _______________(_____amount in words_____) rubles. This amount was included in the loan amount, thus, the total amount of my loan payments increased.
According to Article 16 of the Law of the Russian Federation “On the Protection of Consumer Rights”, those terms of the contract that infringe on the rights of the consumer in comparison with the rules established by laws or other legal acts of the Russian Federation in the field of consumer rights protection are considered infringing.
According to paragraph 2 of Article 16 of the Law of the Russian Federation “On the Protection of Consumer Rights,” it is prohibited to condition the purchase of some goods (work, services) on the mandatory purchase of other goods (work, services).
In accordance with paragraph 2 of Article 927 of the Civil Code of the Russian Federation, in cases where the law imposes an obligation to insure as insurers the life, health or property of other persons or their civil liability to other persons at their own expense or at the expense of interested parties (compulsory insurance), insurance is carried out by concluding relevant agreements. For insurers, concluding insurance contracts on the terms proposed by the policyholder is not mandatory.
In the manner prescribed by paragraph 1 of Article 935 of the Civil Code of the Russian Federation, the law may impose an obligation to insure the life, health or property of other persons specified by law in the event of harm to their life, health or property; the risk of one’s civil liability, which may arise as a result of causing harm to the life, health or property of other persons or violation of contracts with other persons.
By virtue of paragraph 2 of Article 935 of the Civil Code of the Russian Federation, the obligation to insure one’s life and health cannot be assigned to a citizen by law.
Thus, the above-mentioned rules of law confirm the fact that an additional service is being imposed on me - insurance violates my rights as a consumer, which is why I have the right to demand that the insurance contract be declared invalid and the money paid as an insurance premium be returned to me.
I believe that the requirement to conclude an insurance contract when applying for a loan directly contradicts the law and, in particular, Article 16 of the Law of the Russian Federation “On the Protection of Consumer Rights”. In this connection, the specified insurance contract is void.
Your bank imposed on me a service that was not directly related to obtaining a loan, since obtaining a loan could have been issued without insurance, which violated the norms of the current Legislation, as well as my rights as a consumer.
Based on the above, within 10 days from the date of receipt of this claim
ASK:
1. Refund to me the amount of insurance premium I paid in the amount of _______________ rubles.
If you fail to comply with my demands, after the expiration of the 10-day period, I will be forced to seek protection of my rights in court.
________________
Date signatureLast name, initials
Example No. 2
Sample application for insurance refund
In order to obtain a refund of insurance, you must write a standard standard application, which has the following form.
IN: _______________________________________
(Name of the bank)
__________________________________________
(address of the bank)
(FULL NAME.) __________________________________________
(passport details)
__________________________________________ (tel., E-mail)
Statement
“______” __________20 _____, between me and the bank “Bank Name”, a loan agreement No. ____ was concluded. “______” __________20 _____ the insurance premium was written off from my account No. ____________________________ under insurance contract No._____, dated “______” __________20 _____, which was imposed on me. According to paragraph 2 of Article 935 of the Civil Code of the Russian Federation, the obligation to insure one’s life or health cannot be assigned to a citizen by law. I ask you to consider the insurance agreement between me and the bank ______________ invalid and return the amount debited without acceptance to my account. Otherwise, I reserve the right to go to court.
Date__________ __________________________Signature
Example No. 3
IN: __________________________________________
(Name of the bank)
__________________________________________
(address of the bank)
From: _______________________________________
(FULL NAME.)
__________________________________________
(passport details)
__________________________________________
(tel., E-mail)
Statement
on the return of the insurance premium under contract No. ______ dated ______________
“______” __________20 _____, between me and the bank “______________”, a loan agreement No.______________________________ was concluded.
“______” __________20 _____ from my account No.____________________ the insurance premium was written off under the insurance contract with LLC IC “VTB Insurance” No.____________________, dated “______” __________20 _____, which was imposed on me. The validity period of the insurance contract is _____________________. According to paragraph 2 of Article 935 of the Civil Code of the Russian Federation, the obligation to insure one’s life or health cannot be assigned to a citizen by law.
I ask you to consider the insurance contract between me and VTB Insurance Insurance Company LLC No._____________________ invalid and return the amount written off without acceptance to my account. Otherwise, I reserve the right to go to court.
Date___________________________ __________________________Signature
Example No. 4
THE APPLICATION FORM IS ONLY APPLICABLE FOR APPLICATIONS WITHIN 14 CALENDAR DAYS FROM THE DATE OF CONCLUSION OF THE AGREEMENT (PAYMENT OF THE INSURANCE PREMIUM)
THE APPLICATION FORM IS TO BE COMPLETED BY THE INSURANCE holder (THE PERSON WHO PAID THE INSURANCE PREMIUM)
from the Policyholder
Actual (postal) address: Telephones:
Last name, first name, patronymic (in full)
place of birth (Country), citizenship (if there is more than one, indicate all) US TIN / Other country (if available)
series and number name of the issuing authority date of issue and department code
index:__ __ __ __ __ __
STATEMENT
on refusal of the Insurance Contract (termination) and return of the insurance premium
I hereby renounce in full the voluntary accident insurance contract (Insurance Policy) No____________________, concluded by me on _______/_______/_________/ (hereinafter referred to as the insurance contract), and ask to return the insurance premium paid under the insurance contract. At the same time, I confirm and agree that the insurance contract is considered not to have entered into force and insurance payments are not made under it.
Please indicate the reason for canceling the insurance contract (check one or more options):
Please make a refund by bank transfer using the following details:
To my bank account:
Name of the bank (and its branch):
Bank address and phone number:
BIC: Bank INN:
Bank current account*:
Correspondent bank account:
Applicant's personal account:
Applicant's plastic card number:
* The bank current account must be filled out if only the plastic card No. is indicated, as well as if the applicant’s Personal account is indicated in the purpose of payment, for example, for regional branches of Sberbank.
I hereby confirm my familiarity with the purposes and conditions for the processing of personal data contained in the insurance contract (insurance policy) and in the Rules of voluntary accident insurance as amended in force at the time of concluding the insurance contract (hereinafter referred to as the Insurance Rules). In addition, by signing this Application, I express my consent to the Insurer using my personal data for the purpose of the Insurer monitoring and assessing the quality of the insurance service on all issues of its provision (for example, to find out the reasons for refusing the insurance contract), including . by making direct contacts via communications. By signing this Application, I confirm my consent to the processing of personal data in accordance with the provisions of the insurance contract and the Insurance Rules (subject to the provisions of this Application).
Applications (check as needed ):
copy of the payment order/check order/check for the transaction;
copy of identification document;
other (specify) ________________________________________________________________________________.
Currently, movable and immovable property, human health and life are insured against damage. Citizens can also protect themselves from accidents through insurance. A life insurance contract is most often used when taking out a loan. Thus, banking institutions want to protect themselves from non-payment of debt by the borrower in the event of an insured event, namely, death or disability of group I. How to terminate an insurance contract (similar to terminating a loan agreement) and in what cases this will be possible, we will consider in more detail.
Deadlines
According to civil law, a citizen who has executed an insurance contract has the opportunity to terminate the above agreement and return part of the unused funds in proportion to the remaining period if:
- the likelihood of an insured event has disappeared;
- the presence of the insured risk has disappeared according to factors that do not affect the insured event. The above factors are considered to be the loss of the insured property or the bankruptcy of the insurer.
You can terminate the insurance contract early, without waiting for its expiration. However, if this special opportunity is not provided for in the agreement itself, then it will be impossible to return funds for the unused period.
Many policyholders expressed dissatisfaction with the imposition of an insurance contract when taking out a loan, and in connection with this fact, the Central Bank introduced the concept of a “cooling off period”, starting in November 2015, when it is legally permitted to terminate the agreement.
Cooling period- this is a five-day period from which the calculation of the conclusion of an insurance contract begins and which is given to an individual (the policyholder) to terminate the existing agreement. The procedure is carried out unilaterally and with little or no financial losses if the insured event does not occur.
The insurer carries out partial refund to the policyholder who decides to terminate the agreement early if the insurance contract is valid for several months. The calculation of payments depends on the time that has passed since the conclusion of the document.
Something to remember! After the “cooling off period”, terminate the insurance contract The opportunity will only arise if the above document has the appropriate criterion.
How to terminate a life insurance contract?
Taking out a life insurance policy is most often an additional service when taking out a loan from a banking institution and is considered a voluntary procedure. You can terminate a contract with an insurance company by following the step-by-step algorithm of actions:
- collection and preparation of necessary documentation;
- contacting the insurance company with a written application;
- consideration of the application within a ten-day period by the insurance company;
- final termination of the insurance contract and calculation of payments.
Transfer of funds is made within a period not exceeding ten days. The following list of documents should be attached to the application:
- identification document of the applicant-insurant - original and photocopy;
- duplicate and original of the life insurance contract;
- papers confirming the legality of the reasons for canceling the agreement.
The existing agreement between the policyholder and the insurer can be terminated during the “cooling off period” or during another period if this condition is specified in the agreement.
By loan
When taking out a loan, employees of a banking institution are often imposed an additional obligation to draw up a life insurance contract. In case of early termination of a loan life insurance contract the credit institution must also be notified.
To terminate an agreement unilaterally, you should take into account the type of signing of the document. Employees at a banking institution offer their clients the following ways to obtain an insurance policy:
- registration of an individual insurance policy;
- joining a collective insurance program.
In the latter case, there is a signed agreement between the bank and the insurance company. The borrower is included in this document and is considered insured from that moment on. The insurance payment is the payment of the corresponding commission to the credit institution for carrying out the operation of joining the above program. In this case, it is not possible to terminate the agreement during the cooling-off period..
The main condition for the possibility of terminating the agreement is the presence of such a condition in the concluded agreement. The amount of funds returned may not be 100 percent, since the banking institution has the right to collect personal income tax from individuals.
Upon voluntary registration of insurance
According to generally accepted rules, you can terminate an agreement with an insurance company within a five-day period, which is called the “cooling off period.” Refunds are made in full if the insured event does not occur within a given period of time.
After 5 days, the policyholder should refer to the contents of the existing insurance contract. If the return of finances upon early termination is a stated clause, then the money can be returned, but not in full. To terminate the agreement, you must submit a written application to the insurance company.
Transfer of funds is carried out in proportion to unused time with deduction of business management costs. The above costs can range from 25 to 90%. Insurance rules sometimes provide that a deduction from the amount due after cancellation is equal to the amount of payments made.
We will consider below how an application is drawn up to terminate an insurance contract.
Statement
You can terminate an agreement with an insurance company by drawing up an application. The signed document is submitted in person to the company or sent by registered mail. A written appeal is drawn up in two copies - one remains with the applicant, the other with the insurance company.
The standard application form must contain the following information:
- recording the name of the insurance organization without abbreviations;
- information about the policyholder - full name, place of registration, passport details;
- indication of information about the life insurance contract - insurance policy number, date of signing and date of expiration of the document;
- a description of the reason why the policyholder wishes to terminate the agreement;
- expressing a request to terminate the agreement and return funds for the unused period;
- fixing the method of making financial payments - in cash or non-cash, by transfer to a bank account;
- date and signature.
You can download a sample application for termination of a life insurance contract link .
Refund
If the policyholder wants to refuse the life insurance service and terminate the contract, then he can use the so-called “cooling off period” for a period of five days from the moment of service registration. By law, the insurance organization is required to comply with the above regulations.
Something to remember!According to the order of the Central Bank, from January 1, 2018, the five-day period will be extended by two weeks.
If the decision to terminate the life insurance contract was made at the very beginning of its validity, then the refund is made in full. The main condition is that no insured event occurs during this period.
After the specified 5 days, the refund occurs in proportion to the unrealized insurance time. Consider the following situation:
An individual has signed a life insurance contract with a validity period of 20 years. After a five-year period, the citizen decides to terminate the agreement. 70% of paid fees are refundable.
The transfer is carried out within a maximum of 10 days after consideration of the application and a positive decision.
What to do if the insurance company refuses to terminate the contract?
Terminating an insurance contract is not easy. The insurance organization may refuse in the following cases:
- the application for termination of the agreement was drawn up with errors;
- the corresponding condition is not recorded in the document;
- an insured event occurred.
In some cases, the insurance company's refusal to terminate the agreement has no legal basis. In this case, you can file a corresponding claim with the Central Bank of Russia or resolve the problem in court.
The statement of claim is sent to the arbitration court with a formulated request to terminate the life insurance contract. If you take out a loan, after a month you can achieve a 100% return of funds. If more time has passed, then you can only achieve a 50% refund. Within a month after accepting the application for consideration, the court makes a positive decision to terminate the insurance contract and obliges the insurance organization to make a payment.
You can download a sample statement of claim for termination of a life insurance contract.
Purchasing an insurance policy is not a prerequisite for issuing a loan.
Despite this, many banks do not issue a loan when they receive a refusal from potential borrowers to provide life insurance on the loan. And some banks do not warn at all about imposed insurance. Borrowers learn about this only after concluding a loan agreement.
After July 1, 2014, based on changes in the law, the bank is no longer able to impose insurance without the client’s consent.
According to the press services of banks, only 5% of clients require, the rest learn about this opportunity only after the established deadlines have passed. Therefore, at the moment, only a few are fully returning the “insurance” money.
What could be the reasons
It will not be easy to refuse insurance without a good reason. To somehow motivate your refusal, you can consider two options. Let's say you purchased a product on credit and they imposed insurance on you.
In this case, you can refer to the fact that it was sold or it failed for a reason that was not provided for by the terms of insurance.
And if it was life and health insurance, then you should refer to clause 2. In any case, they will not be able to refuse you and will set a time when you can terminate the life insurance contract and return the money. They will tell you what needs to be done for this.
But there is one condition. If more than 6 months have passed since the conclusion of the contract, then you will be refunded only a small part of the money spent on insurance, less than half.
It is worth noting that if you propose to the insurance company to reissue or change the terms of the contract, then your proposal will be received with great enthusiasm. For example, an insurance contract can be reissued as a cumulative one.
Then, at the end of the contract, you will be able to withdraw your money minus a small percentage. We recommend considering all options in order to get out of the situation as “painlessly” as possible.
Deadlines for application for refusal
Before signing a loan agreement, carefully read all the terms and conditions. One of them will necessarily indicate the possibility of refusing insurance and indicate the expected time frame for the start of the procedure.
Few people who want to take out a loan know that, for example, Sberbank provides the opportunity to refuse insurance within 14 days after signing the contract.
However, money can only be returned when the insurance contract has not yet entered into force. Otherwise, the client will be refused, or a meager amount will be returned, since the bank, in this case, faces tax consequences.
Alfa-Bank is also preparing for this possibility. And HKF-Bank, Promsvyazbank, Binbank provide this opportunity within 30 days with full reimbursement of the amount for insurance protection. Bank of Moscow, VTB 24, Russian Standard are not yet ready for this option.
Required documents and stages of insurance termination
In clause 9.3 we read the following condition:
Similar conditions are described in . Therefore, based on these rules, the borrower has the right to terminate the loan life insurance contract unilaterally and return the money in full for the insurance paid.
To terminate the contract, you must do the following:
- make copies of the policies, write on them by hand “Copy is correct”, put your signature, date and make a scan;
- write a handwritten statement that you want to terminate the insurance contract, indicating a specific reason (paragraph 2, part 3). The application must indicate the details of the policy. To transfer money for insurance, you need to indicate the bank account number to which you make monthly loan payments;
- We recommend sending these documents by registered mail with notification to the addresses of insurance organizations. The notice sent to you will serve as evidence in court if such a step needs to be taken;
- It would be a good idea to scan the documents and send them by email to the organization, as well as by fax. These details are the same for these organizations and can be found on the Internet.
Your application must be reviewed within 14 days. Then you draw up a written agreement with the insurer to terminate the contract (). After this, the money will be transferred to your bank account.
It would be useful to periodically check by phone about the status of consideration of your application, as well as find out the specific date for the transfer of funds. As soon as the money is transferred, you should write an application for partial repayment of your loan debt.
At the same time, carefully continue to repay your debt according to the schedule. In a few days, you should receive a new loan repayment schedule, taking into account the adjustment of the principal debt to the amount of insurance money.
After receiving the loan, we contact the credit department of the creditor bank with a claim about the infringement of your consumer rights, a sample of which is presented below:
Application-claim for refusal of life insurance on a loan
Usually, conscientious banks, and these are mainly large organizations, easily satisfy the borrower’s requirements. But it should be borne in mind that after this the bank can raise the interest on the loan for now its own risk. If the bank still refuses to terminate the insurance contract and return your money, go to court.
The required documents for the court are:
- statement of claim, a sample of which can be viewed in the provided file:
Sample statement of claim to invalidate the terms of an insurance contract
- a copy of the loan and insurance agreement;
- written refusal of the creditor to terminate the insurance contract.
If you do not have a policy in hand, be sure to indicate this fact in the application. In court, the bank will be required to show it, and if your signature is forged there, then a serious punishment under the relevant article is inevitable.
In addition, it would be useful to present in court your conversation recorded on a voice recorder with the bank’s loan officer. To get such a record, ask a friend to visit the bank and.
After you provide a complete package of documents, based on judicial practice, the court decision to terminate the life insurance agreement on the loan is made in your favor.
Waiver of OSAGO
There must be a good reason to refuse car insurance.
Reason 1.
If the owner of the car that is on credit has sold it to another owner. In this case, the owner is replaced. Then the insurance policy for the former owner of the car becomes simply worthless. But the transaction must be formalized through a purchase and sale agreement.
How to formalize termination:
- Write a letter of termination to the insurance company.
- Attach to the application an identification document of the former owner, a copy of the MTPL policy and a receipt for its payment.
Reason 2.
There was an accident and the car was completely destroyed and could not be restored. The termination algorithm is the same, but you will also need to attach a certificate from the traffic police confirming the fact of the accident and a certificate from the car dealership stating that the car cannot be restored.
If the owner of the car died in the accident, a death certificate is attached.
Reason 3.
If the insurance company goes bankrupt, then when an insured event occurs, there will be no one to compensate for the loss. In this case, you should also refuse car insurance and, if desired, get reinsurance with another organization.
If some additional conditions were imposed on you with car insurance, for example, life and health insurance, then in this case the refusal of life insurance on the loan after signing the contract is formalized by an application, a sample of which is attached in the file:
Sample application for refusal of life insurance on a loan to OSAGO
In all cases, the application must indicate:
- your passport details
- contact information (how to contact you)
- reason for termination.
The application form in some companies is different, but be sure to indicate the fact that you are the initiator of termination of the contract, regardless of whether such a clause is provided for or not.
From the moment you submit your application, the contract will be considered terminated. The money must be returned to you within 14 days.
In Sberbank
We write the application to Sberbank by hand in any form, where we indicate:
- your personal data;
- reason for termination of insurance;
- details and name of the insurance company;
- insurance policy number and series.
The approximate text of your application should be like this:
After writing the application, you should scan it and send it by notification letter and email to the insurance company. After the date of receipt of the letter on the 21st day, you are required to return the insurance amount.
In Rosgosstrakh
The application to Rosgosstrakh should be written according to the model given in the following file:
Sample application for refusal of additional services and refund of funds.
If necessary, you can file a complaint with Rospotrebnadzor that insurance was imposed on you or issued without your knowledge; a sample can be seen below.
In each individual case, analyze the situation, study the laws and boldly seek the restoration of your rights, if, of course, the law is on your side.
How to get your money back if you repay early
Let's consider this option. Let's say the borrower agreed to all the bank's terms and conditions and took out a loan with insurance. Please note that the insurance amount was paid using the money from the loan itself.
After some time, the borrower pays off the loan in full. But what about insurance? Legally, it continues to operate, but in fact the need for it has disappeared. Now remember this:
Do not rush to write an application for termination of the insurance contract.
Why? If the insurance contract itself stipulated the fact of early termination and did not stipulate the return of money, then there is no point in your application. The contract at your request will be terminated, but the money will not be returned.
If there is a condition for the return of money in the contract, then in this case, at your request, the balance of unused funds as of the date of termination of the contract will be recalculated and the request will be satisfied.
A sample application looks like this:
There are times when the money is not returned to you, citing many reasons. What to do in this case?
First of all, you should know that you have two undeniable guarantees of success in winning this case in court:
- The first is early repayment of the loan.
- The second is the opportunity, in your case, provided for in the Insurance Contract and the Rules thereto, to return the rest of your money.
We file a lawsuit. Payment of state duty is not required, since your case is related to the protection of consumer rights. Early termination of a life insurance contract on a loan is provided for in clause 1 of Article 958 of the Civil Code of the Russian Federation.
You created a condition by repaying the loan early. And paragraph 3 of the same article says that you have the right to part of the insurance money, calculated in proportion to the time when the need for insurance has ceased.
Thus, the insurer can keep for itself that part of the funds attributable to the time when the loan agreement was in effect. The rest must be returned.
In the statement of claim you must refer to Art. 958 of the Civil Code of the Russian Federation, Article 32 “On the Protection of Consumer Rights”, which contains legal norms, conditions for termination of insurance and the borrower’s right to refuse to fulfill the contract in the event of the provision of services under it having already been completed, and at any time.
Due to the fact that there is no longer any insurance risk, the insurance amount is zero. Therefore, the insurer is obliged to return the remaining money. A sample statement of claim is given in the following file.
Statement of claim for recovery of part of the insurance premium under an insurance contract.
After carefully reading this article, you will easily understand your options in this or that case, fill out the application correctly, prepare a package of necessary documents and legally defend your civil right to comply with Russian legislation.
Video: Loans, insurance service in a loan agreement, how to return loan insurance.