Updated 09/21/2017.
Taking out a loan without insurance is a very difficult task. Although our insurance is voluntary in most cases, bank employees quite often tell clients that the bank simply will not give a loan without an insurance policy.
Ordinary employees should not be blamed for this; they are just following the instructions and orders of their credit institutions. They have a sales plan, for failure to fulfill which they are deprived of bonuses, reprimanded, etc.
In this article we will look at in what cases you can take out a loan with the registration of imposed voluntary insurance, and then return the money for this same insurance, taking advantage of the cooling-off period.
I previously wrote about this opportunity in an article; today we are faced with the task of creating a step-by-step guide: “How to get money back for credit insurance.”
Refund of loan insurance: instructions
1 Waiver of insurance during the cooling-off period. Reading the new law.
First of all, you need to know your rights.
UPD: 09.21.2017
There is another pleasant exception to the issue of refusing collective insurance, VTB Bank. Clients of this bank have successful experience of returning money when refusing collective insurance, and this right is not specified in the contract, but in fact.
● Make sure that the interest rate on the loan will not increase if you cancel the insurance.
The bank may provide in the insurance contract different loan rates in the case of insurance and without it. Formally, the bank does not violate anything, and it cannot be convicted of imposing an additional service on you. Insurance will not be an imposed service, since the client had the choice to take a loan with insurance at a lower interest rate or without insurance at a higher interest rate. We discussed this situation in detail in the article.
Quite often, insurance contracts do not mention that the interest rate on the loan will increase without insurance.
3 Application for refusal of insurance. Sample.
You must submit an application to cancel the insurance contract within 5 working days ( UPD: 09.21.2017 From January 1, 2018, the cooling period increases to 14 calendar days). An application for waiver of insurance can be submitted in two ways:
● take it directly to the office of the insurance company (namely, the insurance company, not the bank). It is important that your copy contains a note that the application was accepted on such and such a date, so that you have evidence that you were on time.
● send an application to the insurance company by registered mail with a list of attachments. Moreover, it is the date the letter was sent that is important, not the date it was received. So don’t worry that you will miss the 5-day deadline due to the slowness of the Russian Post.
A sample application for refusal of insurance can be requested directly from the insurance company. There are no special requirements or standards for the appearance of such a statement. The main thing is that your personal data, the number of the insurance contract that you want to terminate, and the account details where the insurance company should return the insurance premium are indicated there. An example text can be found at the company "Sberbank Insurance" , "Alpha Insurance" or, for example, the company "Renaissance Life" .
This is what an application for refusal of insurance from the Sberbank Insurance company looks like:
Some companies require that the original insurance contract or any additional documents be attached to the application. For example, "VTB Insurance" requires, along with the application for refusal of insurance, to provide an insurance contract and a document confirming payment of the insurance premium:
However, if you do not provide the original documents (more precisely, I do not even recommend sending the original documents, since the insurance company may “accidentally” lose them, and they will be useful in court if the company refuses to voluntarily return the money), then the insurance company will still not have reasons to refuse to return your insurance, the main thing is an application for refusal of insurance.
4 Successful experience in returning money for insurance. Reviews.
You might think that in order to return insurance you need to have some special knowledge, that only professional lawyers can do this.
This is not so, below are reviews from ordinary clients, just like you and me, who were able to refuse the imposed insurance and return the money.
Here is a review from a client of the Renaissance Life company about his successful refusal of a life insurance contract imposed at a car dealership when obtaining a car loan. The client sent a package of documents to the company’s email address, and also took the documents to the insurance office for backup (and did the right thing. If there were any problems with payments, and the application was sent only by email, then the court would be extremely it's hard to prove you're right).
When taking out a cash loan, an OTP Bank client was forced to take out an insurance policy from the Blagosostoyanie insurance company. He sent an application for refusal of insurance to the insurance company by registered mail with a list of the attachments. Copies of the passport and insurance policy were attached to the application. The letter arrived for almost a month, but after it finally arrived, Blagosostoyanie Insurance Company returned the money for the insurance:
Here is a review from a VTB Insurance client who was forced to insure financial risks when taking out a loan. The application for refusal was filed at the central office of the insurance company, but the client was advised to contact the bank directly. After threatening to send a complaint to the Central Bank of the Russian Federation and write a pre-trial claim, the VTB Insurance company returned the money for insurance:
The company did not pay another client of VTB Insurance for insurance within the specified period, despite the fact that the client promptly submitted an application for termination of the insurance contract to the company’s office.
The client did not put up with the injustice and sent a pre-trial claim asking for the money back. Otherwise, he threatened to write a complaint to the Central Bank of the Russian Federation, as well as go to court with additional demands for damages, compensation for moral damages, legal expenses, and a fine. As a result, the VTB Insurance company returned the money for insurance in full:
And someone had no problems at all with refusing insurance from this company:
Here is a review from an Ingosstrakh client about a successful refund of money upon cancellation of a property insurance contract. The application was submitted in person to the office. True, the company still delayed the deadlines:
The Sberbank Insurance client managed to get her money back after refusing a collective insurance agreement, although the application was submitted later than 14 days from the date of conclusion of the agreement. The fact is that such a right is spelled out in the insurance contract itself (I have not seen such concessions from other insurance companies). They didn’t want to accept the application for refusal; the client had to threaten to write a complaint:
This review inspired another client of the Sberbank Insurance company, who also managed to get her money back for canceling a collective insurance contract:
Here is a review from a client of the Renaissance Life company, who sent an application to cancel the life insurance contract imposed when receiving a car loan by Russian Post, and personally delivered an additional copy to the company’s office. The company’s employees, in her words, behaved frankly rudely when they tried to submit an application for refusal of insurance, but as a result, she still returned the money for insurance:
The client of IC "Rosgosstrakh" sent an application to cancel the insurance contract by registered mail with a list of attachments, enclosing a copy of the contract and a copy of the document confirming payment of the insurance premium. The insurance money was returned to the client:
Please note that the client of Rosgosstrakh, who returned the money for insurance, attached to the application exactly copies, and not the originals of the contract and payment, although the insurance company states on its website, that she supposedly needs the originals: “Accumulative and investment life insurance: Reading the contract”). When trying to refuse the product at the bank office, the client was asked to deal with the Alfa Insurance insurance company on his own. He sent a refusal application by Russian Post and, as a result, received his money back:
It is possible to refuse insurance and return money to clients of the insurance company "VSK":
A client of the Alfa Insurance company managed to cancel her insurance and get her money back without any problems or delays:
Here is the experience of successfully refusing a property insurance policy from IC Zetta Insurance, imposed upon obtaining a consumer loan from OTP Bank. The deadlines, however, were missed. Please also note that this company's insurance contract contains a clause that in case of termination of the contract they will retain 80% of the insurance premium. This point contradicts the Central Bank Directive, which we discussed above. However, the company does not remove it from the contract, although it does not retain 80%, supposedly of its own free will:
Here is another review about the company “Zetta Insurance”, where the client was initially returned only 20% of the cost of insurance. But after filing a complaint, he was paid the full cost of the insurance, without deducting the “load”:
Conclusion
Always read any contract carefully.
Use the right to refuse insurance during the cooling-off period (from January 1, 2018, the cooling-off period is 14 calendar days). It is quite possible to get your money back for the imposed insurance. True, sometimes you may need to write a complaint to the Central Bank of the Russian Federation, send a pre-trial claim to the insurance company, or at least threaten this on a hotline or at the company’s office.
Make sure that you are the policyholder and not the Bank, i.e. They didn’t give you a contract to join the group insurance program. Also make sure that the loan rate does not depend on the availability of insurance.
One of the conditions for issuing any loan is insurance. This could be taking out insurance for the collateral: a car or residential premises, or maybe life and health insurance. Banks often offer to include funds for insurance in the loan itself. What happens to the insurance if the debt is returned early? After all, there is no point in needing it anymore. Is it possible to get a refund for the remaining insurance period?
According to the law The bank has no right to require the client to insure his life and health. When applying for a loan, the bank manager must inform that such insurance is voluntary and cannot influence the decision to issue.
However, the illiteracy of the population in legal matters, as well as the tricks of banks, lead to the fact that such information does not reach the borrower. In any case, the borrower decides for himself whether to insure his life or not, and it is necessary to weigh the pros and cons of making such a decision.
So, you decided to insure your life when applying for a loan, while paying for the insurance in full. After some time, you were able to repay the loan early, but life insurance remained. What happens to insurance? She continues to act. But in fact, the need for it has already disappeared.
Is it possible to terminate the contract and get the money back?? This depends on two points.
- Firstly, You have repaid your loan early. This means that you can not only get back the money spent on paying for insurance services, but also interest if they were overpaid. Read more about this at this link.
- Secondly, the insurance contract states that the client has the right to an insurance premium if terminated early. The insurance premium is formed from the funds paid for insurance minus the amount already used.
All conditions for receiving your insurance money back have been met. What's next? First of all, you need to contact your insurance company. You need to submit an application. Write two copies (one for you, the second for the insurance company).
In the application you indicate that you need to recalculate insurance premiums and return part of the funds due to early repayment. By the way, if you are just planning to pay off your debt ahead of schedule, we suggest that you read this article, where we talk about how to do this most profitably.
Make sure that the application has been registered and that your copy bears the appropriate mark. The application must be reviewed within 10 working days. In theory, after this period, you are required to return the remaining insurance funds. What to do if this does not happen? You can safely file a claim in court.
In your application, you can refer to Article 958 of the Civil Code of the Russian Federation. According to this law, you create conditions for termination of the insurance contract when you repay the loan ahead of schedule. It also states that the insurance company can keep only part of the premiums and return the rest to the client.
Thus, the borrower has every chance to return part of the money spent on life insurance.
If you signed an insurance contract, but next month you want to cancel this service, you may be able to get your money back without having to completely repay the loan, read more about this.
Most bank loans come with insurance. Banks are required to warn clients about the need to conclude an insurance contract. The insurance amount can be included in the monthly payment, or paid in full at the time the loan is issued. Based on this, many borrowers are concerned about the question: if they repay the loan early, will the insurance be returned? In this article we will tell you whether it is possible to return insurance and how to do it.
Reasons for returning insurance
By law, if the loan is repaid early, the borrower can return part of the insurance.
If the loan is repaid early, the borrower has the right to demand the return of overpaid funds. The reasons for this are:
- Article 958 of the Civil Code of the Russian Federation. It specifies the conditions under which the borrower can terminate the insurance contract early. Since the risks of an insured event disappear, the company is obliged to recalculate.
- Letter of the Ministry of the Russian Federation dated 05/08/2013 No. 03-04-05/4-420 obliges insurance companies to return to clients the balance of the unused insurance amount. This amount should not be subject to taxes.
How to return insurance
If the loan was repaid more than 3 years ago, there is no question of returning the insurance, because the statute of limitations has passed. If the loan is paid off early, there is a chance to get the money back.
First you need to sort out the documents. This:
- A loan agreement that specifies all the conditions.
- Insurance contract.
- Pledge agreement (if any).
- Receipts.
- A certificate confirming full repayment of the loan.
- Who acts as the insurer (the application must be addressed to him). This could be either the bank itself or an insurance company.
- Is there an object of insurance (house, car, apartment).
- Is insurance not included in the package of additional services along with other commissions - informing via SMS, issuing a card, etc.
If the collateral property is insured, you can contact the insurer to change the beneficiary. By default, this is the bank. You need to submit an application indicating in whose favor the insurance will be paid - in favor of the client himself or one of his relatives.
If the object of insurance is life, health, loss of work, property, etc., you need to contact the insurer with an application, which is best filled out in duplicate. You should also attach a certificate of early repayment of the loan.
If the agreement states that repayment of the loan is impossible, the company will most likely refuse the application. In addition, the law states that the insurer has the right to refuse to pay insurance if the loan is paid ahead of schedule. In case of refusal, the borrower may go to court.
If insurance is included in a package of additional services, the bank itself acts as the insurer. The client can submit an application to the bank to refuse additional services and ask to return part of the funds. If the answer is negative, you need to contact Rospotrebnadzor with a complaint.
How to get part of your insurance back
Part of the insurance in case of early repayment of the loan can be returned if this is specified in the contract. For the return of the amount, a time frame is specified - usually 1 month.
If within a month the borrower applies for a refund, the insurance amount will be transferred to his account minus the costs of processing the contract. In case more time has passed, the amount paid will be reduced in proportion to the time passed.
Refund insurance and credit history
Federal Law No. 218 Art. 4 “On credit histories” provides a specific template for the borrower’s credit history. It should include several parts. The information part assumes the presence of:
- information about all client requests to the bank;
- approvals and refusals to repay loans with reasons;
- recording lack of payments 2 times in a row or more.
The title and main parts include:
- personal data of the borrower;
- information about loans taken and their amount;
- interest on loans;
- repayment terms, etc.
There is no information in any part of the credit history about whether the borrower can demand the return of insurance or not. Therefore, it is impossible to spoil history with this fact.
How to win a case in court
When an insurance company refuses to pay insurance on a paid-off loan, the borrower can go to court. The practice of such cases is ambiguous, but positive decisions are made.
According to the law:
- The insurance contract terminates early if the possibility of the insured event no longer occurs. But the existence of the insurance risk ceased due to other circumstances (early repayment).
- The insurer has the right to receive a portion of the premium in proportion to the time during which the insurance lasted.
- If the life insurance contract is terminated, the borrower is returned the amount from the formed insurance reserve at the time the contract expires.
However, not all so simple. All provided possibilities are subject to the Rules of the insurance company, which are different for each organization. Therefore, first of all, you need to familiarize yourself with them.
Refund of loan insurance is a popular service today that is used by many borrowers. To return the insurance premium, the client must write a statement and send it to the policyholder’s office. The borrower has 5 days from the date of signing the agreement to do this. In this case, the organization will not be able to refuse and will be forced to return the money within 10 days from the date of receipt of such an application. If the client does not have time to submit an application during the cooling-off period, the money may not be returned to him. It all depends on the insurance company and the actions of the borrower.
If this question is difficult for you, take a simple test and everything will be clear.
Test: Find out if you can get your loan insurance back
Many people do not trust any companies that offer insurance return services. It makes sense. However, in this case, your mistrust results in lost money. While you are trying to collect documents and wasting time on applications, time is running out. The result is that the money is no longer available. It’s better to apply right away and probably get some of the money back. Thanks to proven work schemes, you get your money back within 1 week after your request.
What is insurance and why is it needed?
Voluntary insurance when obtaining a loan is the most common additional service imposed by banks and other credit organizations. It is insurance that leads to a greater financial burden on the borrower and, as a result, to an increased overpayment on the loan.
Insurance guarantees the bank the return of loan funds at the expense of the insurance organization upon the occurrence of an insured event. With the help of insurance, the bank minimizes the risks of returning money, especially in the case of mortgage lending and car loans.
Insurance is also convenient for borrowers who, in the event of an insured event, will not need to pay monthly loan installments for a certain time fixed in the contract. The insurance company will do this instead. In Russia they have a very negative attitude towards such a service, but it can also be useful for clients.
How to cancel a policy and what are the consequences?
It is very easy to cancel your insurance policy at the application stage. It is enough to inform an employee of the organization of your refusal and not sign an additional agreement to join the insurance. However, this may backfire for the client. Some of the most common consequences of failure include:
- Negative decision on a loan without a policy. Banks often refuse loans to clients who do not sign an insurance contract. This is due to the fact that the lender is in no way protected from possible non-repayment of the loan if the borrower and his credit history are not the best. In such cases, the bank may be inclined to make a positive decision precisely because of the connected insurance and, conversely, refuse due to its absence.
- Significant increase in interest rates. Another common trick of the bank that threatens clients who refuse the policy. Typically, credit institutions offer 1 loan product with different rates with and without insurance. The presence of a policy reduces the interest rate for the borrower by 5-10 percentage points, the absence of one increases it by 10-15 points. Naturally, the borrower tries to choose the cheaper option and takes out a loan with insurance, forgetting that he will have to pay a high insurance premium at the expense of the loan body. This can be much more expensive than a standard interest rate increase.
- A significant change in lending conditions for the worse for the borrower. In addition to increasing the interest rate, refusal of loan insurance can lead to a decrease in the lending limit, an intentional increase in the loan term or its reduction, etc. It is very profitable for banks to connect the borrower to insurance, so they will use all possible methods to force clients to take out a loan with a policy.
Refund of insurance: main nuances
If you have joined an insurance agreement, received approval for a loan and want to cancel the policy, you can do this within 5 days from the date of conclusion of such an agreement. The main condition is the absence of an insured event during this period. In some banks, the client is given 14-30 days to return the insurance (Sberbank, VTB), which is fixed in the contract, so before signing it you need to carefully read all the documents.
A five-day “cooling-off” period was introduced in accordance with Decree of the Central Bank of the Russian Federation dated November 20, 2015 N 3854-U. At the discretion of the insurance company or bank, a longer cooling period may be imposed.
The policyholder must return the money to the borrower within a 10-day period from the date of receipt of the corresponding application for the return of loan insurance. Often policyholders delay payments, so after the 10-day period has expired, it is better for the client to contact Rospotrebnadzor with a corresponding complaint.
If you apply for insurance on the same day that you received the loan, then most likely the insurance contract has not taken effect, so the client will receive 100% of the insurance premium.
If 1-3-5 days have passed, then the borrower will not receive 100% of the insurance premium paid, but only part of it minus an amount proportional to the period that has passed from the date of receipt of the policy to the date the policyholder receives the application from the client.
That is, if the client submitted an application for the return of insurance 4 days after receiving the policy, then the policyholder will retain part of it for these 4 days during which the client was officially insured. The amount for such a short period of time will be small.
The law on the cooling and return of insurance within a 5-day period does not apply to CASCO (auto insurance) and mortgage loans, where compulsory insurance of the property is required by law. The cooling order affects consumer and trade loans, non-designated loans and any other types of loans that are not secured.
Insurance return step by step - what should the borrower do?
Within 5 days after concluding the insurance contract, the client must write an application for refusal of insurance. The ideal option would be to call or contact your insurance company in person and ask for a sample of such an application. If this cannot be done, you need to write the paper according to the standard format with the obligatory indication of your full name and passport data, information about the insurance contract (number, date of conclusion and other important conditions), the reasons for terminating the insurance contract (no need for insurance, a legally enshrined right to refuse insurance within 5 days, etc.) Also in the application you must indicate the account number and bank details for the return of insurance. They can be found at the bank where you have an account. The application must be dated and signed.
The borrower also needs to make a copy of his loan agreement and passport. The entire package of documents should be submitted to the office of your insurance company. Many borrowers take papers to the bank, which is completely wrong. With individual insurance, an application for refusal of insurance is submitted to the insurance organization, and not to the bank.
There are several ways to deliver papers to the addressee:
- Take them to the department in person. In this case, the client needs to prepare 2 copies of documents, indicating this in the application. One must be given to an employee of the insurance company, and on the second, be sure to ask for the date of receipt of the application and the organization’s seal. This is necessary in order to subsequently confirm that the documents were submitted to the insurance company within 5 days, and not later.
- Send by registered mail with notification and a list of attachments by Post. There is no need to worry about the slowness of the Russian Post and delays in sending, because the date of transmission of the application will be considered the Russian Post stamp on receipt of the letter, and not the actual date when it reaches the addressee.
Within 10 days after receiving such a statement, the insurance company must return the money. However, practice shows that organizations delay this procedure in every possible way and actually return the money only after months.
Why can they refuse to return insurance?
If the borrower submitted an application to refuse insurance within 5 days from the date of conclusion of the contract, the insurance company will not be able to refuse according to the law. However, there are a number of cases where an insurance agent may issue a denial.
Firstly, it is legal when an insured event occurs and the organization fulfills its obligations. For example, a borrower took out a loan, and a day later he was fired from work (job loss policy), or he was hospitalized with a serious illness and will not be able to work in the near future (life and health insurance policy). In this situation, the policyholder will pay monthly loan payments instead of the client in accordance with the terms of the concluded agreement.
Secondly, the organization may refuse to pay insurance if the client submits a corresponding application after the 5-day cooling-off period has passed. In this case, the insurance company is not obliged to return the money. The client can try to get the money back through the court by proving that the insurance was imposed.
Thirdly, the refusal will come if a collective insurance agreement was concluded. It will not be possible to return it within 5 days. The client will only have to file a lawsuit and try to recognize the clauses of the agreement on joining collective insurance as void, in accordance with clause 2 of Art. 15 of the Law on the Protection of Consumer Rights in the Russian Federation. According to this clause, sellers of services are prohibited from conditioning the purchase of some services on the unconditional purchase of other services.
Fourthly, the insurance company may refuse to pay insurance after 3 years. In this case, the statute of limitations will apply and the client will be denied consideration of the claim in court.
Fifthly, a refusal may come if the application is filled out incorrectly or some required documents are missing in the package. Therefore, it is so important to contact your insurance company and obtain a complete list of necessary documents for filing an application and its sample.
Features of insurance return in case of early repayment
If the client has a loan for 3 years + insurance for the entire term, and after a year of proper repayment he decides to close the loan early, he can return the insurance premium in accordance with clause 3 of Art. 958 of the Civil Code of the Russian Federation.
However, the same article states that the policyholder has the right not to return part of the insurance. In this case, it is better for the client to contact competent lawyers and prepare a claim in court.
What types of insurance are there?
First of all, all insurances are divided into collective and individual. Under individual insurance contracts, the client enters into an agreement directly with the insurance company. The result is the relationship: insurance company - individual.
Under agreements on joining collective insurance, the client enters into an agreement on joining insurance with the bank, which is an insurance agent. Result: relationship: insurance company - bank (legal entity).
After this division, insurance is divided by type. Some of them are optional and can be returned, while others cannot. Let's consider the types of insurance for which a refund cannot be made:
- CASCO. Issued when purchasing a car on credit.
- Real estate insurance is relevant for mortgages and loans secured by real estate.
Optional types of insurance include:
- Life and health insurance of the borrower is voluntary insurance regulated by Art. 935 of the Civil Code of the Russian Federation.
- Insurance in case of loss of ability to work, job loss, layoff, etc. In this case, the insurance company will pay the loan for the borrower within 4-10 months, depending on the terms of the contract. During this period the client must find a job. Even if he does not do this, the insurance company will stop paying the loan after the specified period and the client will have to find money to pay off the monthly premiums himself. Typically, such insurance lasts only for the duration of the loan agreement.
- Title insurance (mortgage loans) is also not mandatory, despite the strict condition of banks that it is mandatory to take out this insurance when obtaining a mortgage.
- Property insurance for consumer loans
Why can’t you refuse insurance for a car loan and mortgage?
The fact is that the mandatory insurance for these loans is enshrined in law. That is, in these cases, insurance is not an imposed additional service, it is enshrined in law and is included in the conditions for obtaining a loan. This means that it cannot be refused as an additionally imposed service, as is the case with consumer loans and other things.
The requirement to have insurance against loss for purchased property is stipulated by Art. 935 of the Civil Code of the Russian Federation and Art. 31 Federal Law “On Mortgage”. According to these documents, the bank has the right to require from the client compulsory insurance of the purchased property in case of damage, loss, etc. At the same time, title insurance, life and health insurance, job loss, etc. are optional for mortgages and car loans.
Such insurance will also be useful for borrowers if an insured event occurs. For example, a car may be stolen, then the client will have to continue to pay the loan for a car that does not exist and it is unknown whether it will return to the owner, and in the case of insurance, this will be done by the insurance company.
Collective insurance and refunds
After the Central Bank issued a decree on the cooling-off period, banks began to look for various tricks to avoid this. Lenders began to connect clients to group insurance.
The five-day period for the return of premiums does not apply to agreements on joining collective insurance, because according to the decree of the Central Bank, such an opportunity is assigned to the policyholder and the individual, and not to the legal entity. In case of collective insurance, the contract is concluded between the policyholder and the bank, which is a legal entity. Thus, the decree of the Central Bank of the Russian Federation does not apply to such relationships.
There is a way out in this case, too, if the insurance organization provides in its documents the possibility of refusing to join collective insurance when submitting a corresponding application. Then the borrower needs to write an application for refusal to join collective insurance and a refund of the insurance premium. Such points are rare in the conditions of insurance companies, but they do occur.
Now collective insurance can also be returned; there is a court decision on this, supported by Rospotrebnadzor - see http://72.rospotrebnadzor.ru/content/465/79981/
Before writing an application to cancel client insurance, clients need to make sure that the interest rate on the loan will not change significantly. Sometimes it is more profitable to keep the insurance than to refuse it, receiving the insurance premium back and an increased interest rate on the loan.
Successful experience of refunding money for insurance
There are quite a lot of reviews on the Internet from borrowers who managed to return insurance for consumer and trade loans within 5 days after concluding an insurance contract.
They all claim that the money was returned to them not within 10, but much later, but the money was still returned.
Feedback on insurance refusal at Sberbank. 
Feedback on the return of imposed car loan insurance.
Feedback on the return of insurance in Sberbank.
Feedback on obtaining insurance for a Post Bank loan, for which the insurer is the Cardiff organization.
One of the additional services that Russians pay when using a loan is insurance. It reduces the risk of non-refund. If certain circumstances occur during the contract period, the bank will receive money from the insurance company (IC). However, loans, especially consumer loans, are most often repaid ahead of schedule. It turns out that the need for an additional service disappears. Will the insurance be returned to the borrower after the loan is repaid in this case? Yes, but not in full.
A little history
On November 17, 2009, the Presidium of the Supreme Arbitration Court adopted a resolution according to which commissions on bank loans were considered measures that infringed on the rights of consumers. Over the following years, hundreds of cases were examined regarding the return of illegally paid amounts. Banks were forced to eliminate fees, which were an important source of their income. But then they quickly found an alternative - they increased the rates for using the funds.
After the Federal Law “On Consumer Loans” came into force, a new problem arose - the imposition of insurance contracts when issuing a loan. Clients began to file complaints about:
- the fact that banks, threatening to refuse to issue a loan, imposed unnecessary agreements;
- high cost of insurance services;
- the fact that the refusal to return funds for additional services was initially stated in the loan agreement.
On the one hand, banks increase commissions, and on the other, clients are not aware of their rights. Fearing refusal to receive a loan, they draw up additional contracts, and then think about how to return the insurance after repaying the loan.
Who needs it
There is still a need for insurance. Banks receive additional security for the return of funds in unforeseen situations. If an insured event occurs, the company transfers a specific amount to the credit institution to repay the loan. If it exceeds the outstanding balance, the difference is paid to the debtor (in theory). If the amount of compensation is not enough to cover the debt, the bank will look for ways to withhold funds from the client. Most often, the risk of death and the acquisition of disability of groups 1 and 2 are insured. If we are talking about real estate, then compensation will be paid in case of illegal actions of other persons, damage by water, fire, as a result of a natural disaster, natural phenomena, vehicle theft, or an accident.
Insurance
According to individuals and legal entities, they are free to enter into contracts. That is, the bank does not have the right to impose any service on its clients as a prerequisite for receiving a loan. At the same time, the law stipulates the case when a loan cannot be provided without life insurance of the client. We are talking about obtaining a mortgage and purchasing a car. If the contract is signed, payments are received regularly, a logical question arises: after I have paid off the loan, do I have the right to return the insurance?
The beneficiary of such transactions is the bank. If the loan is repaid in full, the client has the right to terminate the insurance contract, since the property becomes his property. The bank is obliged to recalculate and transfer the balance of funds. The insurer has the right to receive part of the reward. Its amount is proportional to the duration of the contract. Whoever repaid the loan has the right to return the insurance. But provided that the loan was paid ahead of schedule. That is, it will not be possible to return the insurance after repaying the loan on time. The procedure depends on what kind of loan was issued: consumer or collateral. In the first case, the client’s life is insured, and in the second, the collateral property is insured.
Ways to save
So, banks do not have the right to impose insurance when applying for a loan, except in cases specified by law. If this does happen, try not to include the cost of the service in the total loan amount. Otherwise, interest will also be charged on it. Whoever repaid the loan has the right to return the insurance. This can be done in such situations.
It is possible to achieve a positive decision in case of early repayment of the loan. This option will be discussed in detail below. It is only worth noting that the money is not returned automatically. You will have to contact a bank branch, write an application, collect copies of documents, and then wait for a decision.
Another way to get your loan insurance back? The client may have a disease that prohibits the law from concluding a contract. The list of exceptions is in the contract itself. But no one conducts medical examinations before signing the papers. The client may simply not be aware of such an exception and pay the cost of the service. You can order a recalculation and ask for compensation for the money paid. But even in this case, the client will not receive the entire amount, but 87% (including a tax of 13%).
How to return insurance on a Sberbank loan?
The client may refuse to participate in the program after receiving the loan. To do this, you must contact the department within 30 days from the date of paperwork and write an application addressed to the manager. If the loan is paid off, can the insurance be returned after a few months? In this case, the client can receive a contribution minus the costs of connecting to the program and taxes paid. This is approximately 50% of the original amount. Part of the premium paid is also subject to a refund, provided that the application is completed in two copies; the client’s copy must have a mark with the date of registration of the paper. This option is more suitable for consumer loans.
Mortgage
How to return insurance on a Sberbank loan issued for the purchase of an apartment or car? The collateral is a guarantor of compensation for losses after termination of debt obligations. It is impossible to terminate such an agreement without paying off the loan. You can return the funds if the loan is repaid ahead of schedule and the insurance is paid for the entire period. In this case, you need to contact the insurance company with an application, provide a copy of your passport, loan agreement, and a certificate of early repayment of the loan. After this, recalculation is carried out and the balance is returned to the client. Prudent borrowers should choose a program with annual renewal at the stage of signing documents.
How to return insurance for a loan?
There are two options for solving this problem.
The first is pre-trial settlement. After repaying the loan, you can return the insurance through the company that issued it. Many clients go straight to the bank. But it's not right. The financial institution is an intermediary between the insurance company and the client. It gets rewarded for attracting customers.
You need to file a claim for recalculation of contributions in connection with loan repayment to the insurance company. The application must be written in two copies and registered. If the company's office is geographically remote, the application should be sent by registered mail with notification. The document should indicate the period within which the client expects to receive a response. At the same time, it is worth ordering an extract from your personal account, which will indicate how the funds were distributed. Some companies react to such a statement.
What if there is no response? You should write a letter to Rospotrebnadzor, enclosing a copy of the application, inventory, and notification of delivery of the letter. How to return the insurance after repaying the loan if no response has been received from Rospotrebnadzor? Go to court.
The proceedings could drag on for months. Claims with an amount of up to 50 thousand rubles. considered by the world court. The application must be accompanied by:
- Loan agreement.
- Payments confirming payment of the loan.
- Insurance contract.
- Calculation of the amount of the claim.
- Application to the insurance company.
- Postal notification and
- Response from the financial institution (if any)
It is very important to correctly calculate the amount of the claim. It may be less than legal costs. You can try to collect them from the bank through the court, but it is not a fact that this will work. Applications are accepted for three years. Here's how to get your loan insurance back.
Nuance
By law, if a bank requires consumer loan insurance, it is obliged to offer an alternative. In practice, this is a program with higher interest payments or with the mandatory activation of the SMS information service.
Bank-insurer
An important link is excluded from such a scheme - the IC. This means that the norms of the Civil Code of the Russian Federation do not apply to such agreements. If the loan is paid off, can the insurance be returned? No. The premium received by the financial institution is considered payment for additional services. It is non-refundable even in case of early termination of the contract. In such a situation, only the bank can decide to compensate part of the amount to the client in order to preserve its reputation.
Loopholes
There is no point in trying to figure out how to get your insurance back for a loan on your own. It is better to seek help from lawyers. Most often, one of the existing loopholes is used to solve the problem.
You can refer to the language in the loan agreement that is associated with the insurance. The document may contain a phrase with the following meaning: “The insurance contract is signed for the entire period of use of the loan funds” (the wording may differ). The meaning is as follows: if the loan is repaid ahead of schedule, the borrower’s obligations to the bank are considered fulfilled, and the insurer’s obligations must also end.
The second option is to refer to the lack of risk. The agreement is concluded so that if an insured event occurs, the bank will receive its funds back. If the loan is repaid early, there is no need for such protection. According to Art. 958 of the Tax Code of the Russian Federation, if “the insurance contract ceases to be valid before the date for which it was concluded, or if the risks of an insured event have disappeared,” the company is obliged to recalculate and return part of the premium.
But even these arguments rarely work on insurers. Most often, the matter has to be resolved through the courts. The result depends on the position of the judge. But there is still a chance to return the funds. Insurers, trying to prove their loyalty to clients, include clauses in their documents regulating the procedure for returning premiums in case of early termination. Also, do not forget about the Insurance Rules. The client can even study these documents on his own in advance.
Arbitrage practice
How to return loan insurance if the client is right, but the insurance company does not want to accept the documents? It is worth contacting a consumer protection organization. Its employees will help the client defend his rights in court, and may even act on the side of the plaintiff. Practice shows that in cases where financial institutions imposed additional services on clients contrary to the provisions of the law, the court most often sided with the applicant. In the case of loans, the organization acts as a seller of the service, which imposes the signing of another contract.
