How to return insurance in case of early repayment of a loan? Refund of insurance after early repayment of a bank loan.
When receiving a loan, borrowers often encounter a demand from a bank to conclude an insurance contract for something. Or even worse - they learn about additional costs only after the conclusion of the loan agreement. It is easy for an uninitiated person to get confused among the many types of credit insurance, as well as whether they are really necessary and necessary.
WHAT IT IS
An insurance contract insurance premium is a payment for credit risk insurance that a customer pays under an insurance contract.
Today, banks are trying to protect themselves as much as possible from non-repayment of the loan and urge borrowers to insure themselves and collateral against many different types of risks. For this, loan programs are often offered with an insurance premium included in the loan amount.
Such programs are usually characterized by lower interest rates, which attracts potential borrowers.
If insurance is included in the loan amount, the premium on it is often paid at a time for the entire loan term.
The option is also possible when the loan contains insurance only for the first year. Then the borrower must independently renew the insurance contract annually.
Credit Insurance Video
DOES IT MUST BE PAYED?
There are various types of insurance depending on the type of loan. Let us consider in more detail which of them are mandatory, and which ones can be abandoned.
Mortgage:
- Property. Mortgaged property insurance is mandatory in accordance with the Law on Mortgages and Art. 343 of the Civil Code of the Russian Federation. Usually costs within 0,4% from loan debt.
- Title. When concluding such an agreement, the risk of loss of ownership of the acquired property is insured. Title insurance is not mandatory; some banks do not even offer it or do not increase the interest rate if it is not available. Title insurance costs the borrower until 0,3% from the insured amount.
- Personal. It is also not mandatory, however, the absence of a life insurance contract often affects a rate increase of 2-7 points. Personal insurance may reach 1,5% from loan debt. Despite the high cost of this insurance, in the case of a mortgage, experts recommend nevertheless not to refuse it. Since the validity period of mortgage loans reaches 30 years, the probability of an insured event is quite high.
Car loan:
- CASCO. Typically, banks oblige borrowers to conclude a CASCO insurance contract annually. The conclusion of such insurance is justified, given the high accident rate. Recently, credit organizations began to offer special programs that do not provide for mandatory insurance of CASCO insurance. It is worth paying attention, in this case, loan rates can be significantly higher, usually by 5-8 points. Sometimes the bank permits not to extend the insurance if the client had no delays in payment and the loan debt is less than half the cost of the car.
- Life insurance and disability insurance. Life insurance is not necessary, but its absence raises the interest rate by 1-2 points. Usually costs in 1–1,5% of the loan amount. For the borrower, having a personal insurance contract is an additional guarantee in case of death or loss of health. But the term of a car loan is not as long as with a mortgage, therefore, in each case, the borrower decides how much he needs such insurance.
Consumer loan:
- Life insurance and disability. The inclusion of personal insurance in the loan amount for consumer lending is very common. Its necessity and impact on loan conditions are similar to a car loan.
- Job loss insurance. This is another type of voluntary insurance that banks are now actively offering as part of lending. This type of insurance often does not make sense, since an insured event involves the loss of work only through the fault of the employer. That is, the dismissal of the borrower of his own free will, as is often done in our country, is drawn up, regardless of the real reason, will not be considered a basis for compensation.
- Collateral insurance. If you have a collateral, you must insure it, as well as with targeted loans.
Compulsory and voluntary types of insurance
CAN I REFUSE
Theoretically, you can refuse voluntary types of insurance and choose the option of a credit program without insurance.
But in fact, this does not always work out, since in some banks in this case the loan may not be approved. The reason for the refusal to the client is not announced, and financial organizations sometimes use it.
Before or after receiving a loan?
In terms of spending personal time and money, it is easier to refuse insurance at the stage of choosing a loan program. If the final decision on the uselessness of insurance is made, then it is better to immediately warn the loan officer about this.
There are several options for terminating the insurance contract after receiving a loan:
- Contacting a bank or insurance company with a complaint. Some banks immediately return the amount of the premium at the request of the client, without changing the rest of the loan conditions. As a rule, the terms of termination of insurance and changes that are made to the parameters of the loan are provided for in the loan or insurance contracts. Sometimes a minimum period is indicated (usually 3 or 6 months) through which you can refuse this service and return the money for the issued policy.
- Legal Termination. If the bank and the insurance company refuse to voluntarily terminate the insurance contract or ignore the client’s statements, you can appeal to the court with this matter. The court considers individually in each case, how much the issuance of the loan depended on the availability of insurance, and whether the choice of a loan with insurance was voluntary. The service is not considered imposed if the borrower himself chose this option of the loan program in the questionnaire. Collecting the amount of the insurance premium in this case will be unlikely. To the claim must be attached:
- loan agreement;
- insurance contract or policy;
- payment document confirming payment of insurance;
- correspondence with the bank on this issue.
- Appeal to Rospotrebnadzor. If insurance was imposed, you can also write a statement to Rospotrebnadzor. If the loan agreement contains clauses that infringe on the rights of customers, the bank will be held administratively liable. In this case, the bank will be ordered to eliminate the violations, and the insurance contract will be terminated. It is worth noting that Rospotrebnadzor can be contacted only if no more than a year has passed since the conclusion of the contract.
It should be borne in mind that often insurance companies repay the insurance premium on a loan minus agent payments to the bank. Often, the amount of the agency commission is more 50% from the whole award.
HOW TO RETURN MONEY WITH EARLY REPAYMENT
Life insurance and job loss risk contracts are generally concluded for the entire loan term. Therefore, the amount of the insurance premium under the loan agreement is paid at a time when issuing a loan.
In case of early repayment of the loan, it is possible to return the paid amounts for the remaining period only if such an opportunity is provided for in the insurance contract. According to Art. 958 of the Civil Code of the Russian Federation, the insurance premium is not refundable in case of early termination of the policyholder from the contract.
The option of complete termination of the contract is possible if the service was originally imposed. To do this, you must apply to the bank with a complaint and, in case of refusal, to the court.
Often, credit insurance is regarded as reducing the risk of the bank at the expense of the borrower. Therefore, choosing a loan program, many choose the most economical option. However, it is worth considering the need to conclude an insurance contract not only in terms of its economic benefits, but also the feasibility of a certain type of insurance.
At the time of early repayment of the loan, you have the right to partially return the insurance paid in advance. You will learn about calculating the size of the payment and the nuances of returning insurance payments from the article.
How to repay a loan ahead of schedule
You have the right to partially or fully repay the debt. In any case, this will reduce your financial burden and reduce the amount of overpayments. If you repay the debt in full, the bank will terminate the loan agreement, relieving you of any obligations. In case of partial repayment, the creditor will recount the payment schedule, the amount of debt will decrease.
For early repayment of the loan you will need:
- To study the terms of the loan agreement regarding the return of borrowed funds. Often banks require you to notify them of such an intention in advance.
- Visit the bank branch and make a statement in duplicate, indicating the loan repayment date and amount. One copy should be handed over to the employee. On the second, your, should put a mark on the receipt of the document.
- At the indicated time, contact the bank and deposit the necessary amount to the credit account. Upon full repayment, specify the outstanding balance with the specialist.
- For partial repayments, require a restated payment schedule. It must be executed as an additional agreement and signed by the creditor.
- When returning the full amount, ask the bank for a certificate on closing a credit account.
How to return insurance in case of early repayment
If during the process of obtaining a loan you bought insurance, then you should try to return the funds paid in advance. After the full repayment of the loan, contact the insurance company with the documents:
- photocopy of the loan agreement;
- passport
- a certificate from the creditor on the full repayment of the debt;
- a statement drawn up in the name of the director of the company on the premature termination of the insurance policy and the return of part of the insurance premium.
Please note that the agency has the right not to return the money if the borrower repays the loan ahead of schedule, when no other options are indicated in the contract. Therefore, when receiving a refusal, seek a competent lawyer. He may use some loopholes, citing:
- on the wording of the loan agreement, which states that the insurance contract is concluded for the duration of the loan;
- the fact that there are no risks associated with the occurrence of an insured event;
- on the imposition of insurance by the bank, etc.
If the actions of a lawyer do not give a result, you have the right to go to court. You can increase the chances of success by examining the terms of the insurance contract when you receive a loan. Check that the procedure for returning the bonus has been described in detail in the rules.
How insurance is calculated for early repayment of a loan
The insurance amount is calculated according to two schemes:
- For the loan balance - the insurance level is reduced annually.
- For the full loan amount - the premium does not depend on the residual amount.
It is convenient to consider the calculation of insurance compensation on an example: you have issued a loan in the amount of 200 thousand rubles. for a period of 5 years. The annual insurance premium is 1%.
1. The first method of calculation.
When applying for a loan you took 6880 p. as an insurance premium. Having distributed this amount over the years in relation to the balance of credit debt, you will receive:
![](https://i1.wp.com/cbkg.ru/uploads/d297b834099886b2c606d08640759035.jpg)
If you repaid the loan in 2 years, then the insurer must pay you compensation for the remaining period: 1440 + 1060 + 620 \u003d 3120 p.
2. The second method of calculation.
- When applying for a loan, you have taken insurance in the amount of 200,000 * 1% * 5 years \u003d 10,000 p.
- You have paid back the debt for 2 years and 5 months.
- The amount of insurance to be returned is 10,000 / 60 months * 31 months \u003d 5167 p.
Before concluding a loan agreement, the Banks offer to insure the property, life, health of the Borrower depending on the type of loan product (consumer, car loan, mortgage, etc.). At the same time, the Bank guarantees the Borrower more loyal credit conditions. In case of early repayment of the loan there is a problem of returning the insurance premium.
Insurance premium (insurance premium, insurance payment) - the insurance fee that the policyholder is required to pay to the insurer in accordance with the insurance contract or law.
The difficulty of repaying the insurance premium in case of early repayment of the loan arises in 99%. This is due to the legal illiteracy of the insured and the sophistication of the tricks by the insurance companies, which are doing their best to keep the insurance premium to be returned to the insured after the early repayment of obligations to the Bank.
Important! The Federal Antimonopoly Service considers the insurance services preceding the issuance of a loan to be unlawful in connection with the violation of clauses 3 and 5 of part 1 of Article 10 of the Law on Protection of Competition as actions that infringe on the interests of others (see Decision of the Presidium of the Federal Antimonopoly Service of September 5, 2012 No. 8-26 / 4 “On qualification of actions of credit and insurance organizations within the framework of collective insurance contracts for borrowers' life and health”).
Very often, the insured does not apply directly to the insurance company, but to the Bank, which insisted on insurance - admiralmarkets.com.ua/analytics/technical. This is only valid if insurance is included in the package of banking services. In this case, it is necessary to study the loan agreement for the availability of conditions for repayment of funds in case of early repayment of the loan in the amount of the insurance fee, which is calculated in proportion to the remaining loan term. If there is no such item, and insurance is included in the package of services that the Bank provided, then it will not be possible to refuse insurance only, it will be difficult to return the insurance premium. For example, very often, banks include insurance in a package of services for opening and maintaining a current account, issuing credit cards, etc.
Regarding the return of the insurance premium from the insurance company, there are several important points to consider.
According to Art. 958 of the Civil Code of the Russian Federation "Early termination of the insurance contract":
1. The insurance contract is terminated before the expiration of the period for which it was concluded if, after its entry into force, the possibility of an insured event has ceased to exist and the existence of the insurance risk has ceased due to circumstances other than the insured event.
Such circumstances, in particular, include: death of the insured property for reasons other than the occurrence of the insured event; termination in the prescribed manner of entrepreneurial activity by a person who has insured an entrepreneurial risk or civil liability risk associated with this activity.
2. The policyholder (beneficiary) shall have the right to cancel the insurance contract at any time if, at the time of refusal, the possibility of an insured event has not disappeared due to the circumstances specified in paragraph 1 of this article.
3. In case of early termination of the insurance contract due to the circumstances specified in paragraph 1 of this article, the insurer is entitled to a part of the insurance premium in proportion to the time during which the insurance was valid.
In case of early termination of the policyholder (beneficiary) from the insurance contract, the insurance premium paid to the insurer is not refundable unless otherwise provided by the contract.
According to paragraph 1 of clause 3 of this article, the policyholder is entitled to a part of the insurance premium in case the insurance contract was terminated ahead of schedule in circumstances other than the insured event (for example, in case of early repayment of the loan, in which the insurance contract is no longer necessary).
Very often, insurance companies refer to the second paragraph of paragraph 3 of Art. 958 of the Civil Code of the Russian Federation on the situation when the policyholder early resigns from the contract and does not return the insurance premium. However, it should be understood that this paragraph provides for the non-refund of the insurance premium in the event of unilateral termination of the contract at the initiative of the policyholder, when the policyholder writes a statement about the refusal of insurance and early termination of the contract.
In order to avoid denial of payment, it is necessary to apply in writing to the insurance company with a statement on the refund of part of the insurance premium. On the copy of the application, the official must indicate the acceptance (name, position, date, signature, stamp). In this case, in no case should it be indicated that the policyholder terminates the insurance contract ahead of schedule, because it will be regarded as a refusal of insurance and in this case clause 3, paragraph 2 of Article 958 of the Civil Code of the Russian Federation. If the insurance company does not satisfy the voluntary return requirement, you must file a lawsuit in court.
Important! After early repayment of the loan, the insured can return to the company that issued the insurance policy with the following documents to return part of the insurance premium:
- copy of the loan agreement;
- passport;
- bank certificate on full repayment of the loan;
- a statement written in the name of the head of the insurance company on the return of part of the insurance premium. (After paying the insurance premium, you can terminate the contract)
When applying to the court, you can refer to the fact that the insurance contract was concluded for the entire loan period, and due to the early repayment of obligations, the need for insurance has disappeared; wherein according to paragraph 1 of Art. 958 of the Civil Code of the Russian Federation the insurance policy expires if the risks associated with the occurrence of the insured event disappear. You can also refer to Art. 16 of the Federal Law "On Protection of Consumer Rights", which interprets the conditions for invalidating an insurance contract, returning this amount, and collecting interest under Art. 395 of the Civil Code of the Russian Federation, forfeit, fines, moral damage.
Judicial practice shows that in most cases the court is on the side of the insured. The court satisfies the claims for reimbursement of the insurance premium, referring to paragraph 1 of paragraph 3 of Art. 958 of the Civil Code of the Russian Federation, unless otherwise provided by the loan agreement or insurance contract.
In addition, in its decision, the court refers to the law on consumer protection, according to which a citizen has the right to prematurely refuse the service. In this case, the borrower, according to Art. 810 of the Civil Code of the Russian Federation, has the right to repay a loan ahead of schedule.
Conclusion:the study of judicial practice, information on the forums of law firms, allows us to conclude that many policyholders are faced with the problem of returning insurance premiums with early loan repayments. This is primarily due to the fact that insurers do not know the provisions of the Civil Code of the Russian Federation, do not read the loan agreement and the insurance agreement, thereby enabling insurance companies to refuse to refund insurance payments.
Of course, for the most part, insurance premiums are very low, and insurers are not always ready to run around with the aim of reimbursing part of the insurance premium in case of early repayment of the loan. However, if you carefully read the terms of the insurance contract and correctly approach the issue, the return of the insurance premium is possible in pre-trial procedure.
Sources:
1) V.V. Tulinov, V.S. Gorin. “Insurance Premium” - Moscow: Nauka, 2000.
2) Art. 958 of the Civil Code
3) Art. 810 of the Civil Code
4) Art. 395 of the Civil Code
5) Art. 16 Federal Law "On Protection of Consumer Rights"
6) http://www.asn-news.ru/news/46719
7) Lawyer.RU
Good afternoon, dear friends. In today's publication, I would like to talk in detail about how to return the loan insurance.
I think this issue is very relevant, because despite the legislative ban and extensive judicial practice, a number of banks continue to include insurance commissions in the terms of the loan agreement.
Often, payments are hidden and are included in the package of services. Each consumer has the right to refuse the related services.
Credit insurance: legal framework
Earlier, when signing a loan agreement with the “Insurance” option, it was difficult to return funds or refuse material support. It was believed that the transaction was concluded by the voluntary consent of the parties, and for its cancellation it was required to prove the imposition of conditions or misleading the consumer.
The Central Bank of Russia clarified the issue by adopting a resolution on June 1, 2016 explaining the possibility for the borrower to apply for refusal of insurance services within 5 days after the conclusion of the contract. Typically, a bank transfers funds to a client quickly enough - within 10 days. Credit insurance can also be returned within 3 years, the limitation period, after repayment of the debt in relation to the bank.
What is justified?
The position of the Bank of Russia is justified by Article 16 of the Law on the Protection of Consumer Rights, which states that the receipt of one service cannot be accompanied by the provision of another.
According to Article 48 of the Civil Code of the Russian Federation, an insurance contract is a separate transaction from the main loan contract. In this regard, the possibility of obtaining a loan should not be predetermined by the payment of insurance services.
Any exceptions?
An exception is collateral insurance, for example, when receiving a car loan secured by transport. In this case, you will need to purchase a hull.
Collateral insurance is also required when concluding a mortgage agreement to minimize the risks of loss or harm to a property pledged.
When is it possible to refuse insurance after receiving a loan?
Insurance services are provided on a voluntary basis by credit cards, cash loans, commodity loans for risks:
- job losses by the borrower, reductions
- disability, onset of disability, disability
- from financial risks
- loss or damage to mortgage property
- secured property insurance
If the service is optional, not accompanying the loan agreement, then it is rejected. In other cases, the agreement is drawn up according to the will of the parties to the transaction and it is impossible to force the borrower to make it, he signs the contract at his discretion.
Based on Article 31 of the Law "On Mortgage", the following are subject to compulsory insurance:
- collateral (real estate - apartment or house)
- when transferring a car for collateral - CASCO insurance services package
Important: On the basis of Article 395 of the Civil Code of the Russian Federation, life and health insurance of the debtor is carried out on a voluntary basis. At the same time, introducing into the contract the conditions on the mandatory registration of relations with the insurer is unlawful.
How to opt out of loan insurance
If, nevertheless, you have somehow made insurance and now want to refuse it, then it is possible to terminate the contract and make a refund in the following cases:
- within 5 days after conclusion of an agreement with the bank
- after full repayment of the loan within 3 years
- at any time during the term of the loan agreement
Let's look at each of them in more detail.
1. How to return insurance immediately
The procedure immediately after applying for a loan is carried out in several steps:
- count no more than 5 days from the date of conclusion of the contract
- apply to a banking institution or insurance company with a request to terminate the contract
- provide account details for crediting payments calculated on the insurance policy, often an account tied to a credit card or another account belonging to the borrower is used
The return procedure is not formally regulated and is established by the internal rules of banking institutions. You can read about how to refuse insurance services in the loan agreement or in the bank support service.
The application should be submitted through the branch of the credit company at the place of receipt of the loan. If the regional unit does not accept documents, then you need to send a registered letter with a notification to the central office with the application:
- copies of the contract
- additional applications
- insurance policy, if its execution was carried out
- payment receipts
Can everyone do this?
These standards do not apply to collective insurance contracts. Usually, borrowers join them, acquiring a specific package of services of the bank.
The insurer under such agreements is usually a credit institution, and the consumer joins it.
Refund of insurance payments in such relations during the “cooling” period established by the Central Bank of the Russian Federation within 5 days is not possible.
2. How to return insurance after paying a loan
I think that many may have such a situation that in the first 5 days after loan processing Refund failed. Then it’s worthwhile to understand that the return procedure does not fall under the clarifications of the Central Bank of the Russian Federation.
Then you will need to go to court, but before you do this, you can apply to the bank with a request to terminate the insurance agreement and return the amounts paid under the contract.
As part of the loyalty program, some credit institutions now provide the opportunity to make refunds and terminate the contract after this period.
Such conditions are governed by contracts for the provision of certain types of loans at banks. For example, up to 30 days the period is provided by Sberbank of Russia, as well as VTB-24 under contracts concluded before 02/01/2017. But is it possible to return insurance after repaying a loan at other banks? The issue is resolved in each case individually.
Claims after payment of the debt are not accepted by banks for execution in almost 100% of cases. Therefore, you should contact the court at the location of the defendant with a statement of claim.
During the settlement, the circumstances of the inclusion of the insurance commission into the contract will be considered, whether the borrower voluntarily agreed to compensate for material risks in the event of an insured event, or if payments were “hidden” - the consumer found out about them after debiting a certain amount into insurance services, etc. .
Sending an application to the bank does not guarantee a decision in favor of the applicant on the return of funds for insurance services.
Important: whether to forward a claim and wait for an answer, each borrower decides independently. The law does not establish a mandatory pre-trial procedure. As to whether it is registered in relation to certain relations, the issue is resolved when studying a specific loan agreement.
3. Early repayment of loan insurance
If you are one of those who were able to close the debt before the deadline, then you recalculate payments for insurance services.
Often, the commission is included in the amount of monthly payments, and not paid separately. However, in practice, there are situations when payment of insurance, including as part of a collective agreement, is included in the package of additional services to a credit card or consumer loan. Payment is made in one payment for connection during the entire term of the contract.
In each case, the situation is decided personally.
When repaying a loan ahead of schedule, the borrower must write a statement to the bank on the refund of insurance payments paid for the entire duration of the contract or for the future, in connection with its early termination.
When applying to the bank, most likely you will be provided with your own form of the institution or the employee will offer to draw up an appeal in any form, providing the insurer. The application is sent by the financial institution to the insurance company to terminate the service.
Often, a recalculation is made taking into account the payment of debt to the account earlier than the deadline in the payment schedule, about which the bank notifies the borrower. In case of refusal of a financial institution, the consumer has the right to recover unjust enrichment.
Important: Sometimes it is stated in loan agreements that it is not possible to return the insurance commission for an early agreement.
A credit institution has the right to redirect an appeal to an insurance company or resolve a case on its own.
In case of refusal, you should immediately file a lawsuit, since the limitation period for cases of this category is 3 years. After this period it will be difficult to return the money, it will be necessary to provide a request with the application of documents substantiating the good reason for missing this period.
The satisfaction of this statement takes into account the factual circumstances of the case at the discretion of the court.
Should I contact a lawyer to protect my interests at the bank?
Most likely, attracting a specialist will be inappropriate when sending an application to the bank within 5 days.
If the indicated period is missed and the case is complicated by the signing of an insurance contract under the guise of providing additional services, then the need to attract a specialist in each case is determined individually.
Courts usually take the consumer’s position if all evidence of the imposition of an insurance policy on the borrower is presented under the guise of another service or in order to justify the need to conclude such an agreement in order to obtain a loan.
In cases where a citizen understood the significance of his actions, he was explained the consequences of concluding an agreement and paid for insurance services on his own, the result of the consideration of the case and his gain depend on the experience of the representative protecting the consumer's rights.
Important: a possible return of insurance payments has not been established in relation to all consumer credit agreements, the situation in each case is decided individually.
How to get back consumer insurance
The options for interacting with the bank when obtaining a loan for the purchase of household goods or appliances are the same as when issuing a credit card or obtaining a cash loan.
Three schemes are applicable in such cases:
- refusal of the insurance product in a simplified manner after 5 days after the conclusion of the contract;
- termination of the contract during the validity of the insurance policy;
- repayment after repayment of a loan agreement.
Information on refunds of commissions for insurance services is not included in the credit history, even if the procedure is carried out in court.
It should be noted that insurance can only be returned if the borrower has not used it. If payments were made upon the occurrence of an insured event, then a refund will be refused.
Is it possible to refuse credit insurance if they do not provide reimbursement?
If the insured event occurs, but compensation in connection with its occurrence is not charged to the insured, the borrower may have allowed the following circumstances:
- the deadline for submitting an application for insurance compensation has been missed, which is usually assigned within 1 month from the moment of the occurrence of an unforeseen event;
- in the application there is no indication of the details of the insurance contract, its validity period, data of the insured person and object of reimbursement upon the occurrence of risks;
- no documentation confirming the occurrence of the insured event is provided - an act of medical examination, a protocol on the accident that occurred, etc.
Is it possible to return the insurance commission in these cases? Most likely not, since material compensation was not received through the fault of the borrower - the insured.
Conclusion + video on the topic
A careful study of the terms of the contract before signing it will allow you to avoid problems with the return of the commission for insurance services.
If due to the financial condition it is possible to repay the debt ahead of schedule, then you should pay attention to the clause on the possibility of recalculating or refunding the commission of the insurance company.
It is not possible to return payments or withdraw from the contract in favor of the insurer if there is collateral: vehicles or real estate in a mortgage. Refunds for credit insurance in these cases are not provided for by contracts and the law unless the borrower has been misled about the nature of the loan agreement and the consequences of concluding it.
Actually, that’s all for me. Thank you all for your attention and see you soon.
Quite often, we repay the loan ahead of schedule. And the insurance remains with the bank or with the insurance. How to return it correctly - in our article.
Why do I need life and health insurance?
In the conditions of the modern lending market, it is almost impossible to get a loan without insurance of the loan itself, as well as the life and health of the borrower. After analyzing consumer reviews of credit products, we can conclude that insurance, in fact, is imposed by banks.
The bulk of bank borrowers do not know that the law prohibits lenders from requiring compulsory insurance of the life and health of the borrower. When signing a loan agreement with a borrower, a bank’s credit expert (manager) is obliged to explain to the latter that the life and health insurance service is exclusively voluntary and in no way affects the positive decision on granting a loan.
The usefulness of this type of insurance is highly controversial. This is the case when the borrower needs to carefully analyze all the risks and make an informed decision.
Paragraph one of Article 421 of the Civil Code of the Russian Federation states: Citizens and legal entities are free to enter into an agreement. Compulsion to conclude a contract is not allowed, except in cases where the obligation to conclude a contract is provided for by this Code, law or contract.
In the (credit) relationship of interest to us, between the borrower and the lender, the law establishes only one case of compulsory insurance. This is insurance of mortgaged property by the mortgagor (Article 31 of the Law of the Russian Federation of July 16, 1998 No. 102-ФЗ On Mortgage (Real Estate Mortgage))
If the insurance contract has already been signed, the insurance amount is regularly paid along with loan payments, or deducted from the loan amount at the same time upon receipt of funds from the lender, a logical question arises. How to recalculate the amount of insurance compensation or to return the already paid insurance premiums upon early repayment of the loan.
Insurance Return Algorithm
Step 1. We turn to the bank. Pre-trial settlement of the dispute.
It is necessary to apply (claim) for the recalculation of insurance payments or the refund of part of insurance premiums, in connection with the early repayment of the loan. You need to contact the bank (or insurance company), depending on where the insurance was issued. The application must be in writing, in duplicate. Insist that the bank employee register your application and put the appropriate mark on your copy.
If the bank is territorially removed, send the application by mail, registered letter with a notification and a list of investments. In the application, be sure to indicate the period during which you expect the bank to make a decision on this issue. Request a written response to your application. Without waiting for the bank's response to your claim, order a personal account statement. From this document you will see what amounts, for what insurance you have paid. Bank refused? Do not despair!
Step 2. Appeal to regulatory authorities.
In our case, the organization controlling the activities of the bank is the Rospotrebnadzor authority. The circulation scheme is similar to applying to the bank. The application to the supervising authorities must be accompanied by your application to the bank, the bank’s response (if any), a mail notification of delivery of your application to the addressee, an inventory of the investment in the letter to the bank.
Step 3. Appeal to the court.
You can go to court without going through the bodies of Rospotrebnadzor, but the borrower must be prepared for the fact that court proceedings can last more than one month. Claims with a claim amount of up to 50,000 rubles are considered by a magistrate's court. To apply to the court you will need the following package of documents:
- Statement of claim
- Loan agreement
- Insurance contract
- Payment documents confirming an early repayment of a loan
- Calculation of claim amount
- Bank statement
- Email notification of delivery to the addressee of your application
- List of attachments in a letter to the bank
- Bank response (if available)
Pay attention to the correct calculation of the amount of the claim. The amount of reimbursement of insurance premiums may be significantly less than the amount of legal costs. Of course, you can ask the court to recover court costs from the bank (insurer) in a statement of claim, but you cannot be 100% sure that this requirement will be satisfied.
Remember that the statute of limitations under the laws of the Russian Federation is three years. This applies to the recovery of all payments paid on illegal insurance, regardless of whether the loan is repaid or not.
Mortgage and car loan
As we mentioned above, insurance is mandatory in these cases. Moreover, upon the occurrence of an insured event, the beneficiary is the bank, not the borrower. If the loan is fully repaid, you have the right to notify the bank (insurer) about termination of the insurance contract, since after the loan has been paid in full, the property becomes your property and is no longer collateral.
The insurer is obliged to return the balance to you by recalculating the insurance compensation in accordance with the insurance period. If insurance premiums were paid by you every month, you can stop paying them. The termination of the contract, as a rule, occurs automatically. Before you take this step, carefully read the insurance contract. It may contain clauses providing for forfeits and penalties for such actions.