Drawing up a client’s life insurance contract when receiving a loan is an optional condition, however, many citizens learn about this after drawing up an agreement with the bank. According to Russian law, the borrower has the right to terminate contractual obligations with the insurance company at any time. In this case, he will receive back all or part of the funds spent on insurance. This depends on the period at which the client decided to refuse insurance and the bank’s special conditions.

Termination of the insurance agreement and refund of money

note

According to Article 958 of the Civil Code of the Russian Federation, the client can terminate relations with the insurance company in the first five working days after concluding an agreement with it. This time is called the cooling period. It was established by the Bank of Russia in 2015 in order to protect the rights of clients of banking structures. Insurance companies must prescribe the procedure for returning the insurance premium upon termination of the contract.

The life insurance contract does not come into force immediately. A client who contacts the company with an application to cancel the contract he has concluded with the bank during the cooling-off period must receive 100% of the amount spent on paying the insurance premium. It is important that an insured event does not occur during this period.

If a citizen decides to refuse insurance after the start date of the contract, the company has the right to withhold part of the insurance premium. The calculation is carried out in proportion to the duration of the officially formalized relationship. The money will not be returned if the contract does not contain a clause on reimbursement of the balance of the insurance upon early repayment of the loan.

Grounds for termination of a life insurance contract

In the application for early termination of the loan life insurance contract, the client must indicate the objective reason for his actions. The following explanations are taken into account:

• the insurance service was imposed on the borrower. Banks often “blackmail” clients by denying them a loan if they do not take out an insurance policy;
• providing the client with incomplete or unreliable information about the activities of the insurer;
• abolition, reorganization of the company with which the contract was concluded;
• the client’s desire to re-register relations with another company.

The company providing insurance services has the right to initiate termination of the contract with the client. The basis for this may be inaccurate data provided by the citizen, or violation of his obligations to pay insurance premiums.

How to legally terminate a contract with an insurer

Additional article

If, when applying for a loan, life insurance is an additional guarantee against non-payment, then this is a distinctively new product that guarantees a return of 100% of the money plus interest. In other words, the policyholder trusts the bank to manage investments and at the same time insures his life.

To terminate a loan life insurance contract, the client must contact the office of his insurance company (or through the official website) and fill out an application for early cancellation of the contract with it. It must contain the following points:

• own full name;
• information about the insurance company;
• data of the agency and full name of the agent who carried out the procedure for concluding the contract;
• details of the insurance policy in accordance with the original;
• the date from which the contract should be terminated;
• the reason (grounds) for termination of the agreement;
• a request for the return of the paid insurance premium or the redemption amount under the contract indicating its number;
• exact bank details indicating the personal account to which the insurer will have to transfer money to the client;
• At the end, the signature of the insured person is placed with the date of drawing up the application, with which he confirms the accuracy of the information presented in the document.

The application must be accepted and completed according to the regulations by an employee of the insurance company. He carries out the calculation and indicates the amount that is due to be paid to the insured citizen. The refund to the insured person is carried out within 10 days using the details specified by the client in the application to the insurance company.

A lawyer will tell you how to terminate a life insurance contract early.

According to existing legislation, a client cannot be denied his desire to terminate the agreement early. If this happens, the citizen has the right to seek legal assistance and write a claim document to the court. Copies of the following documents are attached to it:

• passports;
• insurance policy;
• insurance and credit agreements;
• papers that may prove the weight of the reasons for terminating the agreement.

If the insurer refuses to terminate the contract, the client can contact the bank where he took out the loan. Managers are obliged to assist and assist the client in the procedure for terminating the insurance agreement.

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The relevance of the question of how to apply for compulsory motor liability insurance so as not to buy additional insurance for life risks, often imposed by insurers, remains the same for all policyholders in 2020.

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At the same time, despite changes in Russian laws, which state that insurers do not have the right to impose additional types of insurance on policyholders, cases of forced life insurance when purchasing compulsory motor liability insurance still occur.

To understand where to go in such cases, and how to cancel unnecessary insurance, it is enough to thoroughly study this topic just once.

Is it necessary to register

Difficulties with imposed insurance when purchasing a compulsory motor liability insurance policy often arise due to the hidden sale of additional insurance for the risk of harm to life.

It turns out in practice as follows - after preliminary calculation of the cost of the policy, the client, after signing the insurance agreement at the time of the transaction with the insurance company, is forced to pay an amount greater than the cost of the compulsory motor liability insurance policy.

As a rule, the amounts in such cases are exceeded by approximately 1000-1400 rubles. Whereas any MTPL insurance rules do not provide for excess of the policy price by such large amounts.

In addition, according to the same rules, any additional insurance, which according to the law is in the category of voluntary types of insurance, cannot be imposed on the client and can only be sold with his consent.

Unfortunately, many policyholders simply do not read the policy when they sign it.

Therefore, they can either simply be surprised at such a high cost, or look for the reasons where these extra 1000 rubles.

Often, such insurers in these cases can do the following:

1. Agree to the purchase simply because there is no desire to argue with the insurance company.
2. Agree to purchase without even knowing the real cost of the policy.
3. Refuse the purchase and go to another company to...

In the first case, it can be difficult to dispute with the insurer such a detail as the imposed additional insurance. This is especially difficult for those citizens who have no experience in legal matters and do not know the laws.

Of course, if you come to the insurance company with your lawyer, then no questions will arise here - the company employee, seeing that a lawyer is next to you, simply will not include life insurance in the price of the contract.

But not all people can afford to come to a transaction with an insurance company with a hired lawyer.

According to legislative norms, by the way, the imposition of voluntary types of insurance has long been considered a violation of the law and is punishable.

We are talking about the main law in this case No. 2300-1 of 02/07/92, which was last amended on July 3, 2020. This law, in , talks about prohibiting sellers from making their goods or services mandatory for purchase.

And it says that the buyer has the right to refuse the services or goods offered, and if the sale has already taken place, then the buyer has the right to refuse the offer and demand his money back from the seller.

Compulsory MTPL insurance is according to the current version. But life insurance is not a mandatory type of insurance.

Where can I get a policy without life insurance?

According to statistics at the end of 2020, problematic transactions are being recorded in 40 regions of Russia precisely because insurers are imposing an additional program on their clients - life insurance.

Due to the widespread nature of the problem, you have to choose from all insurers in each region separately. The list of companies that are ready to sell compulsory motor liability insurance without additional insurance can be presented in a special table.

Insurance companies in Russia selling MTPL policies without additional services or types of insurance:

Name of the insurance organization	Reliability rating	Popular Opinion Rating	Insurer offers for car insurance
	A++	1,2	OSAGO and CASCO
VTB Insurance		2,8
VSK Insurance House		1,7
		2,4
		2
RESO-Garantiya		2,1
Rosgosstrakh		1,9
		2
		1,6
Energy guarantor		2,8
AIG	A+	3
Absolute Insurance		4,3
Helios		4,5
D2 Insurance		4,1
Zetta		2,6
MSK		2
USC		2
BET		3,5
Renaissance Insurance		2,7
Surgutneft		4,8
UralSib		2,1
SC "Chulpan"		2,4
ERGO Life		1
GAYDE	A	3,5
New insurance “Important”	B+	2,5

In order to be guaranteed to protect yourself from unexpected dishonesty and dishonesty of the insurance company when taking out a compulsory motor liability insurance policy, you can follow some recommendations from legal experts:

1. It is best to be personally present at the company’s office when the transaction to purchase the policy is finalized.
2. Before going to the office, it is best to use an online calculator to calculate the cost of insurance yourself.
3. Before entering the insurance office, it is best to turn on the voice recorder or video recording on your phone. This will be excellent evidence against the insurer if he tries to deceive you.
4. After this, contact an insurance specialist to get a preliminary estimate of the cost of the product. The amount should not exceed too much the amount received during your own calculation.
5. If the cost of insurance is overestimated by 1000 or several thousand, then do not hesitate to ask the insurance specialist why this happened.
   

   Usually the specialist answers that the inflated cost is associated with maintenance due to the fact that the insurance company does not trust the diagnostic card that you are ready to provide along with the application for purchasing a policy. Or due to the presence of additional life insurance.

6. Next, it would be wise to ask the insurer how he can refuse insurance for the risk of a threat to life. In theory, you should be asked to write an application to refuse the additional service.

Typically, insurers consider a refusal application for approximately 1-30 days; you should pay special attention to such periods, because the period of time that you will use the purchased insurance depends on this.

Of course, if you have not yet had time to sign a comprehensive insurance agreement, only then such deadlines will not be important to you.

You can still use your old insurance for this entire period if you contacted the insurance company a month before the expiration of your auto insurance policy.

How to terminate a contract under compulsory motor liability insurance

According to the legislation of the Russian Federation, all policyholders who do not agree with the terms of the insurance contract, or who have been imposed voluntary insurance, have every right to prematurely terminate such an agreement on their own initiative.

This rule is spelled out in, which states that the client has the right to terminate the insurance agreement early at any time.

Therefore, for every car owner who did not finish reading the clauses of the insurance contract when signing it, and then, upon arriving home, read it and realized that he was sold another insurance without his knowledge, it is quite possible to terminate the life insurance contract with the insurer without financial losses for himself.

The entire contract is terminated here, including the MTPL service, and then a new one is concluded, without life insurance or other additional types of protection.

Statement

However, in this case you cannot hesitate; you need to go back to the office of the insurance company as soon as possible and submit an application to cancel the imposed insurance. The application must indicate the real reason for your refusal of insurance services.

Moreover, first the entire contract is terminated, which includes several types of protection, and then the client is offered to conclude a new contract, but without any inclusion of additional types of insurance.

The application must be drawn up in 3 copies - one will go to the insurer, the second you take for yourself, and the third you keep for possible legal proceedings or filing a complaint with the RSA, the Bank of Russia or a consumer rights protection society.

The application is drawn up in any form, because there is no particularly standard form that can serve as a template approved at the state level.

But, nevertheless, the document should contain some standard points that could fully reflect the problem.

These items include the following sections of the application:

1. In the header of the application you need to write to whom exactly the document is addressed (the name of the head of the insurance company and the name of the insurance organization itself), as well as from whom (the client’s name, surname and his address, where he lives).
2. In the first paragraph, you should start writing a statement with a transaction that was completed with the accompanying sale of other services about which the client was not informed.
3. In the second paragraph you need to indicate the grounds on which you have the right to refuse insurance. The reasons must include references to laws.
4. The last paragraph sets out a request to terminate the agreement and return the amount that was paid by the client as the cost of the life insurance policy.
5. Date of application and signature with surname and initials.

Even after filing such a claim, some insurers claim their innocence and refuse to return the money paid for life insurance by the client.

That is why in the application form it makes sense to write a warning in the last paragraph that you will complain about the company further - to the court, RSA, Bank of Russia, Society for the Protection of Consumer Rights, if it does not pay all amounts due back to you and does not terminate the contract at your request .

In theory, such threats should have an effect on the insurer and encourage him to fulfill your request because all of the above organizations can deprive the insurance company of its license by revoking it for some time.

Accordingly, this deprives the insurer of profits for a certain period of time. After all, without a license, he will no longer have the right to carry out insurance activities.

Documentation

In addition to the application in 3 copies. and evidence base - materials from witnesses or video files, photos or audio recordings, you will also need to prepare the following package of documents:

• a copy of the passport of all its pages;
• a copy of the PTS, STS for the car;
• a copy of the current MTPL policy;
• a copy of the current inspection card (diagnostic);
• original and a copy of the driver's license;
• copies of passports and driver's licenses of those persons who were entrusted with driving;
• copies of insurance payment receipts;
• details of the bank (or card) account where the insurer should transfer money in the name of the policyholder.

All these documents are submitted to the insurer for consideration along with the application. All copies must also be accompanied by corresponding originals.

Where to contact

Very often, legal experts draw attention to the fact that every motorist who is going to complain about the insurer or terminate the insurance contract on his own initiative must have evidence that the transaction was completed by force.

Evidence of the imposition of its services by the insurer can be audio or video materials. If the client came to a transaction with someone, then this person can act as an eyewitness. But it is best to check the policy and insurance contract immediately.

You should take a closer look at whether the insurance is comprehensive; if so, then there is a high probability that some other service is added to the MTPL policy, which they may not immediately tell you about.

It is advisable to immediately try to resolve all issues with the insurer itself in order to avoid litigation or other proceedings.

If you still need to complain to some regulatory agency, then the client can submit a demand, petition, or complaint to the following organizations:

• Central Bank of Russia (Bank of Russia);
• Society for the Protection of Consumer Rights;
• RSA (Russian Union of Insurers);
• judicial authority;
• FAS (Federal Antimonopoly Service).

You should apply in a timely manner and not delay the proceedings. It is these organizations that are able to influence the actions of the insurer, and if necessary, they can fine him or take away his license completely.

These organizations will also help force the insurance company to issue compulsory motor liability insurance even in cases where it refuses to sell the policy due to the fact that the client does not want to buy additional insurance for life risks.

It should also be remembered that the law on this issue is always on the side of the policyholders, and therefore you can act boldly and confidently by filing complaints against the insurer with such authorities.

Order

To finally avoid purchasing a policy at inflated prices due to unnecessary additional services, it is enough to collect all the above-mentioned documents, evidence (video or audio materials), submit an application and wait a maximum of 30 days until the insurer reviews all submitted documents.

In the event that the submitted written requests and demands of the policyholder did not have any impact on the insurer, then it would be appropriate to require a written refusal from him.

With this refusal, one copy of the application previously submitted to the head of the insurance company, you can already go to the Bank of Russia and file a complaint against the company.

After filing a complaint against the insurer, a government agency will check it and take appropriate measures, which will either open up a safe path for you to purchase an MTPL policy without additional services, or impose a moratorium on the activities of the insurer.

The grounds for early termination of the insurance contract are given in Art. 958 of the Civil Code of the Russian Federation: the insurance contract is terminated early if, after its entry into force, the possibility of the occurrence of an insured event has ceased and the existence of the insured risk has ceased due to circumstances other than the insured event. Such circumstances include, in particular:
destruction of the insured property for reasons other than the occurrence of an insured event;
termination of business activity in accordance with the established procedure by a person who has insured the business risk or the risk of civil liability associated with this activity.
In case of early termination of the insurance contract for these reasons, the insurer has the right to a portion of the insurance premium in proportion to the time during which the insurance was in force.
In addition, the policyholder (beneficiary) has the unconditional right to cancel the insurance contract at any time, even if at the time of refusal the possibility of the occurrence of an insured event has not disappeared for the reasons stated above. However, the insurance premium paid to the insurer is not refundable unless otherwise provided by the contract. In the comments to the insurance legislation, attention is drawn to the fact that the possibility of unilaterally canceling the insurance contract belongs not only to the policyholder, but also to the beneficiary, i.e. to a third party who did not enter into the contract.
The insurer does not have an unconditional right to terminate the contract early. However, the Insurance Rules and the contract may include conditions for unilateral termination of the contract by
at the request of the insurer without the consent of the policyholder. In addition, the Civil Code of the Russian Federation (Chapter 29) provides for other grounds for early termination of the contract, which are also valid for the insurance contract. These include:
significant violation of the contract by one of the parties (Article 450);
significant change in circumstances (Article 451):
agreement of the parties (Article 450).
In particular, the insurance contract may be terminated early in the following cases:
fulfillment by the insurer of its obligations to the policyholder under the contract in full;
failure by the policyholder to pay insurance premiums within the time limits established by Yogonor;
liquidation of the policyholder who is a legal entity, or death of the policyholder - an individual, if the policyholder has not been replaced in the insurance contract;
liquidation of the insurer in the manner prescribed by law.
If one of the parties intends to terminate the contract early, it must notify the other party of this at least 30 days before the expected date of termination of the contract. If the contract is terminated at the request of the policyholder, the insurer returns to him the amount of insurance premiums paid for the expired period minus the expenses incurred. If, in this case, the early termination of the contract is justified by a violation of the insurance rules on the part of the insurer, then the latter must return the paid insurance premiums to the policyholder without any deductions.
In case of early termination of the insurance contract at the initiative of the insurer, the paid insurance premiums must be paid to the policyholder in full. If the insurer’s demand for early termination of the contract is justified by violations of the insurance rules on the part of the policyholder, then the insurance company returns to him the paid insurance premiums minus the expenses incurred.
Fulfillment by the insurer of all obligations to the policyholder does not now entail termination of the contract, as was established in the original version of the Law “On Insurance”. This means that the insurer, having fulfilled all its obligations, does not lose the right to demand from the other party to the contract the fulfillment of obligations that it did not fulfill.
The consequences of untimely payment of contributions by the policyholder within the established time limits are regulated by Art. 954 Civil Code. According to it, the parties can provide for the corresponding consequences in the legal
re, and in some cases the insurer is allowed to withhold the next insurance premium from the amount of the insurance payment payable.

You can get insurance for almost anything, but you can find out how to refuse insurance services if the need for them has disappeared before the expiration of the insurance policy in this article.

basic information

Dear readers! The article talks about typical ways to resolve legal issues, but each case is individual. If you want to know how solve exactly your problem- contact a consultant:

APPLICATIONS AND CALLS ARE ACCEPTED 24/7 and 7 days a week.

It's fast and FOR FREE!

Insurance services are mandatory for car owners and those who have received a loan to purchase real estate.

Insurance agreements for loans, disability, life, etc. can be concluded on a voluntary basis.

The insurance relationship is sealed by an agreement, which must specify in what situations and with what consequences it is possible to terminate the agreement.

Definitions

Policyholder- this is the person who contacted the insurance office.

Insurer is an insurance organization that has a license and all registration documents in accordance with the law.

Insurance contract– a document according to which the policyholder has the right to compensation in the event of an insured situation.

Legislation

From the legal side, all features of insurance activities are regulated by Law No. 4015 of November 27, 1992 “on the organization of insurance business.”

An article of the Civil Code of the Russian Federation states that an agreement must be concluded between the policyholder and the insurer. Civil legislation also has an article numbered, which explains the specifics of early termination of an insurance contract.

Grounds

The grounds for terminating an insurance contract can be very different. But in order for the insurer not to interfere with the termination and return of the insurance premium upon termination of the insurance contract, you must have a sufficiently compelling reason for breaking off relations with the insurer, and all your claims and arguments must be supported by documents.

What is the cooling period

There is a document in the regulatory framework that includes the concept of a “cooling period.”

Directive of the Bank of the Russian Federation dated November 20, 2015. states that the policyholder has the right to refuse the services of the insurer without loss of money within five days from the date of signing the insurance contract. This document was created due to the fact that many organizations refuse to sell a product or provide a service without insurance, which is, of course, illegal.

How to use it

To take advantage of the so-called cooling-off period, you must submit a written application to cancel insurance services.

For example, many credit agencies say that the chances of loan approval will be much less without signing insurance. In such a situation, voluntary insurance may become forced for those in need of a loan. Some recipients of borrowed funds resign themselves to the need to pay insurance premiums, even if they are not interested in insurance, and someone more knowledgeable, after receiving loan funds, writes an application within five days and refuses insurance services.

If such a refusal is made, then the loan payments are subject to recalculation, due to the fact that the borrower will no longer have to pay insurance premiums.

Procedure

In order to terminate the insurance agreement, you will need to be guided by a justified reason.

The most common and objective reasons for terminating an insurance contract are:

1. Termination of the insurer's activities.
2. Provable fact of imposing insurance services.
3. Failure to comply with the terms of the agreement by one of the parties to the contract.
4. The contract was originally drafted incorrectly.
5. An insured who wishes to terminate a personal insurance contract has found another insurance company with more attractive conditions for him.
6. The parties are ready to terminate the agreement by mutual agreement.

In some cases, the contract is terminated at the request of the policyholder, sometimes the initiator is the insurer.

The reasons for termination may not be entirely clear to one party to the agreement. In such a situation, the dispute is resolved in court.

Rules for registering termination of an insurance contract

In order to terminate the contract for the provision of insurance services, you will need to perform several actions:

1. Write an application addressed to the insurance company. The document can be drawn up in free form, but with mandatory points indicated.
2. Submit an application to the organization where the insurance contract was signed. It happens that a branch of an insurance office or a store that, in cooperation with the insurer, offers insurance to clients, does not have the right to accept an application for refusal; in such a situation, it is necessary to send the refusal document to the head office of the insurance organization either in person or by registered mail.
3. After the application is submitted, the insurance office employee is required to register it. It is with this fact that the procedure for severing the insurance relationship begins. The process of considering an application involves analyzing the reasons and actions of the policyholder until the submission of the refusal certificate.
4. The insurer needs 10 days to make a decision to terminate the agreement. Upon expiration of the specified period, the policyholder must receive a response in writing.
5. The verdict of the insurer will determine whether the application that has not received approval will have to be sent to court.
6. After the insurer agrees to terminate the contract, he will need to return part of the money to the insurer for the entire time that remained until the end of the agreement or the amount that the parties agree on.

By loan

When applying for a loan, almost all banks advise their clients to sign an insurance agreement.

This measure provides guarantees for both the lender and the borrower. It is prohibited to impose insurance services when issuing a loan.

If the relationship under a credit insurance agreement is terminated, you need to find out what type of document was concluded:

1. Individual.
2. Agreement on a collective insurance program.

The difference in them will affect how much of the paid insurance premiums the policyholder can return upon termination of the contract. The individual contract determines the amount of insurance premiums required to be paid. If the relationship is broken during the cooling-off period, then all the money can be returned without loss.

Under a collective insurance program, the policyholder, as it were, joins an existing agreement between the insurance company and the credit institution. The amount that the insurer requests through the bank is, for the most part, not an insurance premium, but a payment for the services of the bank, which provides the services of the insurance organization.

It will not be possible to get the insurance money back if such an agreement is broken, and if they pay anything, it will be pennies compared to the funds contributed.

By voluntary types of insurance

Voluntary insurance presupposes the fact that the policyholder, of his own free will, aware of all the features of the contract, signed the documents.

To terminate a voluntary insurance agreement, you will need to have a very compelling reason.

You can return part of the money for the unused period of insurance only as this will be stated in the agreement.

Termination of the agreement leads to the fact that the insurer is obliged to make a settlement:

Amount due for refund = amount of insurance premiums paid - (amount of insurance premiums ÷ number of days of insurance under the contract × actually used insurance days) - business expenses.

According to OSAGO

Compulsory car insurance contracts are usually terminated for a few reasons, for example:

1. The insurance company that issued the policy ceases its activities or participates in a bankruptcy program.
2. The car that was the object of insurance changes owner.
3. When an accident occurs, the insurance object is completely destroyed.

There are also less global reasons for refusal of insurance under MTPL, for example, when insuring a car, additional services were imposed on the policyholder. Or insurance payments do not comply with legal regulations and clauses of the agreement.

In Sberbank

Termination of insurance relations concluded with Sberbank is carried out upon application in free form, but indicating: details of the insurance company, name of the insured, reasons for termination of the agreement, data of the issued insurance policy.

In Rosgosstrakh

Severance of relations under insurance issued through Rosgosstrakh can be addressed either to the policyholder himself or to various structures, for example, to the Russian Union of Insurers.

Package of documents

Insurance companies can terminate a contract based on just one application, but it happens that in order to terminate the insurance, the insurer will request a whole package of papers, consisting of:

1. Personal documents of the policyholder.
2. Photocopies of the policy.
3. Statements.
4. Documents that increase the significance of the reasons for the breakup.
5. A copy of the insurance contract.

In the event that the policyholder himself does not have the opportunity to collect and submit documents, these activities can be delegated to an authorized person using a notarized power of attorney.

Refund of paid fees

The insurer does not really want to return previously paid funds under the insurance contract if this document is terminated and, by hook or by crook, will refuse payment or make it significantly lower.

To understand what the policyholder can expect when filing a waiver, it is better to consult with a lawyer and submit the contract to him for analysis.

When they can refuse

The policyholder may refuse to pay the balance of the funds contributed as insurance premiums if, according to the rules of the credit agreement, a gap with compensation is not provided.

Controversial situations regarding refusal of early termination of an insurance agreement are resolved in court.

Deadlines

The time frame within which insurance agreements can be terminated without loss can be specified in the text of the agreement itself.

After submitting an application to refuse insurance services, the insurance company will need 10 days, after which the funds will be returned to the policyholder, and the insurance contract will cease to be valid.

Refund if the loan is repaid early

How to terminate a life insurance contract on a loan and get the money back?- a question that our lawyers hear more often than others.

Life insurance within the framework of credit legal relations- a voluntary service that neither banks nor insurance companies have the right to impose. However, almost always, when considering a loan application, a potential borrower is offered to take out insurance or purchase financial protection. You can refuse insurance, but it is not a fact that in this case a loan will be provided. Banks are not required to indicate the reason for refusing a loan. But even if the application is granted, most likely, the loan will be provided at a higher interest rate. As a result, one way or another, banks either indirectly force people to take out insurance, or create conditions under which a loan with insurance looks more attractive in terms of terms.

If you do have to take out insurance, you have the right to refuse it at any time.. True, the consequences of such a refusal will vary depending on the duration of the insurance contract and the grounds for termination of the contract. It is not always possible to get your money back for insurance, and this is precisely the main purpose of breaking off relations with the insurance company. Therefore, you always first need to analyze what will be beneficial and what will not, and what consequences will arise from refusing insurance.

Basic conditions for terminating insurance contracts

There are several time periods for refusing insurance, with different consequences:

1. The cooling-off period is an interval required by insurance companies to establish, during which the client has the right to cancel the contract and return all money already paid. It cannot be less than 5 days, and in practice it is often more. But increasing the duration of the cooling period compared to the standard period is a decision of the insurance company (bank), taken at its own discretion. For some banks this period is 14 days.
2. The period(s) during which the borrower has the right to refuse insurance, but can only claim a partial refund of the funds paid, for example, 75%, 50%, 25% and other rates. Here, insurance companies (banks) have everything individually - from the number of periods, their duration, to the size of the refund and possible additional conditions for terminating insurance.
3. Waiver of insurance beyond cooling off periods and other established waiver periods with partial refund. In this case, the procedure and conditions for terminating the insurance contract at the initiative of the policyholder are regulated by the provisions of Article 958 of the Civil Code of the Russian Federation. The maximum that a borrower can claim is a partial refund of the amounts paid for insurance, and in exceptional cases, directly specified in the law, or by the goodwill of the insurance company, which does not happen.

According to statistics, during the cooling-off period and other grace periods for waiving insurance, only a small proportion of borrowers apply for termination of the contract. Some people do not know that this can be done, including without studying the terms of the contract, and others at first do not attach importance to this possibility. Considering that the cooling period was introduced by the Central Bank only last year, many borrowers who entered into an insurance contract before the regulator’s instructions were automatically included in the category of those who can only qualify for termination of the contract on a general basis.

Waiver of insurance and refund during the cooling-off period

If your decision to terminate the insurance contract still falls within the cooling-off period, you must be guided by the procedure and conditions specified in the contract.

The standard procedure involves preparing an application in the established form to the insurance company (bank) with an attachment of an insurance contract, payment documents for payment of the insurance premium and an identification document. To speed up the process, it is better to apply in person, making sure to receive official confirmation of acceptance of the application, for example, a mark on your copy of the application.

The refund of funds paid for insurance and its amount are determined by the terms of the insurance contract. If the refusal is made within 5 days from the date of conclusion of the contract, then all deposited funds must be returned within 10 days after receipt of the application. If the refusal was received after the cooling period, then, subject to the presence of such a clause in the contract, the following may be returned:

• all funds minus the insurance premium accrued during the actual period of insurance;
• a certain percentage of funds established by the terms of the contract for a specific period of time elapsed from the moment of insurance.

Waiver of insurance after all cooling periods have expired

Everything is more complicated here, and you shouldn’t count on getting back the entire amount paid for insurance. An exception is when such a possibility and its procedure are expressly provided for by the terms of the contract. But, as a rule, they still return minus the amount accrued during the period of validity of the insurance contract, commissions and taxes.

The life insurance contract does not fall under any of the exceptional cases specified in Article 958 of the Civil Code of the Russian Federation, which allows one to count on the return of the insurance premium. You can refuse insurance at any time, but receive at least part of the premium only if the insurer considers it necessary to do so, or it follows from the terms of the contract. At the same time, the law directly establishes the right of the insurance company to reserve and not return or receive funds during the insurance period.

It is beneficial to submit an application for early termination of the contract if the insurance premium payment scheme involves periodic payments - they are usually included in the loan payment. Canceling insurance will allow you to avoid paying for it further. There is no prospect, but you can submit an application if the entire insurance premium has already been paid, in particular, in a one-time payment when applying for a loan and insurance. Here you can count on the return of at least part of the insurance and, as a rule, in court, only if you repay the loan ahead of schedule and thereby eliminate the possibility of an insured event (clause 1 of Article 958 of the Civil Code of the Russian Federation). In such a situation, the insurance company can recalculate the amount of the insurance premium as of the date of termination of the contract and return the overpayment, or it can use paragraph 3 of this article and not return the already paid insurance premium.

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