Currently, movable and immovable property, human health and life are insured against damage. Citizens can also protect themselves from accidents through insurance. A life insurance contract is most often used when taking out a loan. Thus, banking institutions want to protect themselves from non-payment of debt by the borrower in the event of an insured event, namely, death or disability of group I. How to terminate an insurance contract (similar to terminating a loan agreement) and in what cases this will be possible, we will consider in more detail.

Deadlines

According to civil law, a citizen who has executed an insurance contract has the opportunity to terminate the above agreement and return part of the unused funds in proportion to the remaining period if:

• the likelihood of an insured event has disappeared;
• the presence of the insured risk has disappeared according to factors that do not affect the insured event. The above factors are considered to be the loss of the insured property or the bankruptcy of the insurer.

You can terminate the insurance contract early, without waiting for its expiration. However, if this special opportunity is not provided for in the agreement itself, then it will be impossible to return funds for the unused period.

Many policyholders expressed dissatisfaction with the imposition of an insurance contract when taking out a loan, and in connection with this fact, the Central Bank introduced the concept of a “cooling off period”, starting in November 2015, when it is legally permitted to terminate the agreement.

Cooling period- this is a five-day period from which the calculation of the conclusion of an insurance contract begins and which is given to an individual (the policyholder) to terminate the existing agreement. The procedure is carried out unilaterally and with little or no financial losses if the insured event does not occur.

The insurer carries out partial refund to the policyholder who decides to terminate the agreement early if the insurance contract is valid for several months. The calculation of payments depends on the time that has passed since the conclusion of the document.

Something to remember! After the “cooling off period”, terminate the insurance contract The opportunity will only arise if the above document has the appropriate criterion.

How to terminate a life insurance contract?

Taking out a life insurance policy is most often an additional service when taking out a loan from a banking institution and is considered a voluntary procedure. You can terminate a contract with an insurance company by following the step-by-step algorithm of actions:

• collection and preparation of necessary documentation;
• contacting the insurance company with a written application;
• consideration of the application within a ten-day period by the insurance company;
• final termination of the insurance contract and calculation of payments.

Transfer of funds is made within a period not exceeding ten days. The following list of documents should be attached to the application:

• identification document of the applicant-insurant - original and photocopy;
• duplicate and original of the life insurance contract;
• papers confirming the legality of the reasons for canceling the agreement.

The existing agreement between the policyholder and the insurer can be terminated during the “cooling off period” or during another period if this condition is specified in the agreement.

By loan

When taking out a loan, employees of a banking institution are often imposed an additional obligation to draw up a life insurance contract. In case of early termination of a loan life insurance contract the credit institution must also be notified.

To terminate an agreement unilaterally, you should take into account the type of signing of the document. Employees at a banking institution offer their clients the following ways to obtain an insurance policy:

• registration of an individual insurance policy;
• joining a collective insurance program.

In the latter case, there is a signed agreement between the bank and the insurance company. The borrower is included in this document and is considered insured from that moment on. The insurance payment is the payment of the corresponding commission to the credit institution for carrying out the operation of joining the above program. In this case, it is not possible to terminate the agreement during the cooling-off period..

The main condition for the possibility of terminating the agreement is the presence of such a condition in the concluded agreement. The amount of funds returned may not be 100 percent, since the banking institution has the right to collect personal income tax from individuals.

Upon voluntary registration of insurance

According to generally accepted rules, you can terminate an agreement with an insurance company within a five-day period, which is called the “cooling off period.” Refunds are made in full if the insured event does not occur within a given period of time.

After 5 days, the policyholder should refer to the contents of the existing insurance contract. If the return of finances upon early termination is a stated clause, then the money can be returned, but not in full. To terminate the agreement, you must submit a written application to the insurance company.

Transfer of funds is carried out in proportion to unused time with deduction of business management costs. The above costs can range from 25 to 90%. Insurance rules sometimes provide that a deduction from the amount due after cancellation is equal to the amount of payments made.

We will consider below how an application is drawn up to terminate an insurance contract.

Statement

You can terminate an agreement with an insurance company by drawing up an application. The signed document is submitted in person to the company or sent by registered mail. A written appeal is drawn up in two copies - one remains with the applicant, the other with the insurance company.

The standard application form must contain the following information:

• recording the name of the insurance organization without abbreviations;
• information about the policyholder - full name, place of registration, passport details;
• indication of information about the life insurance contract - insurance policy number, date of signing and date of expiration of the document;
• a description of the reason why the policyholder wishes to terminate the agreement;
• expressing a request to terminate the agreement and return funds for the unused period;
• fixing the method of making financial payments - in cash or non-cash, by transfer to a bank account;
• date and signature.

You can download a sample application for termination of a life insurance contract link .

Refund

If the policyholder wants to refuse the life insurance service and terminate the contract, then he can use the so-called “cooling off period” for a period of five days from the moment of service registration. By law, the insurance organization is required to comply with the above regulations.

Something to remember!According to the order of the Central Bank, from January 1, 2018, the five-day period will be extended by two weeks.

If the decision to terminate the life insurance contract was made at the very beginning of its validity, then the refund is made in full. The main condition is that no insured event occurs during this period.

After the specified 5 days, the refund occurs in proportion to the unrealized insurance time. Consider the following situation:

An individual has signed a life insurance contract with a validity period of 20 years. After a five-year period, the citizen decides to terminate the agreement. 70% of paid fees are refundable.

The transfer is made within a maximum of 10 days after consideration of the application and a positive decision.

What to do if the insurance company refuses to terminate the contract?

Terminating an insurance contract is not easy. The insurance organization may refuse in the following cases:

• the application for termination of the agreement was drawn up with errors;
• the corresponding condition is not recorded in the document;
• an insured event occurred.

In some cases, the insurance company's refusal to terminate the agreement has no legal basis. In this case, you can file a corresponding claim with the Central Bank of Russia or resolve the problem in court.

The statement of claim is sent to the arbitration court with a formulated request to terminate the life insurance contract. If you take out a loan, after a month you can achieve a 100% return of funds. If more time has passed, then you can only achieve a 50% refund. Within a month after accepting the application for consideration, the court makes a positive decision to terminate the insurance contract and obliges the insurance organization to make a payment.

You can download a sample statement of claim for termination of a life insurance contract.

Often, after concluding an insurance contract, one of the parties, primarily the policyholder, for some reason tries to terminate this document before its expiration. How realistic is it to terminate the insurance contract and is it possible to get the money back for the insurance? This can be done, but in most cases with financial losses.

What does the legislation provide?

The Civil Code of the Russian Federation allows you to return part of the paid insurance premium.
This can be done in proportion to the unused period in the following cases:

• no longer possible occurrence of an insured event;
• termination of the existence of the insurance risk for reasons not related to the insured event - liquidation of the insurer or destruction of the insured property.

In this case, the law provides for the possibility of early termination of the insurance contract. The policyholder must take the initiative.

It should be borne in mind that if the insurance contract did not provide for such a possibility of early termination of obligations, then the paid insurance premium will not be returned.

Reasons and conditions for termination of the contract

In addition to the two main reasons, there are several additional ones. These include:

• impossibility of further insurance payments;
• desire to change the insurance company to another one offering more favorable conditions;
• violation of the law by the policyholder, unreliability of the data provided by him;
• the desire of the parties to change the original term of the concluded agreement.

Regardless of the intentions of the parties, the reason for terminating the insurance contract must be valid. If the insurer agreed with the policyholder’s arguments, then it will not be possible to return all the money. Any agreement is drawn up in such a way that the insurance company loses as little as possible.

Methods of termination

The law provides for several ways to terminate a life insurance contract and return funds. It all depends on who initiated the procedure.

This can be done by the insurer in the event of non-payment of premiums by the policyholder or failure to comply with other terms of the contract, as well as by the insured person by filing an application for termination of insurance.

Each of the options provided by law has its own special forms of appeal. In addition to the application for termination of the insurance contract, it will be necessary to prepare a copy of the policy and provide documents confirming the identity of the insured person.

How is insurance issued upon receipt of a loan terminated?

In most cases, individuals have a desire to terminate the life insurance contract that was imposed on them when concluding a loan agreement. The overpayment in this case can be quite large.

The insurance contract itself is terminated directly by the insurance company, but the bank must know about this fact. Otherwise, based on the agreement, the credit institution will continue to charge an overpayment for a service that no longer exists.

Cancellation of such a contract begins by submitting an application (a sample is given below) to the insurance company. In it, the policyholder indicates his personal passport data, address, details and name of the insurance company. The following is a request for the return of part of the premium. After submitting such an application, the contract is considered terminated. But for this, both parties are required to enter into a written agreement.

The money is returned to the bank account specified by the policyholder. During the days the insurance is valid under the loan agreement, it will be impossible to return the money. After early termination of the agreement, only part of the funds paid is returned.

How to terminate a voluntary insurance contract

If you want to terminate a life insurance contract, after which more than 5 days have passed, and return the money, you must follow the insurance rules. When concluding an agreement, most insurers try to include a condition that provides for the return of only part of the premium paid. Refunds are made in proportion to the unused period, taking into account the expenses used to conduct business. Such costs can range from 20% to 80%.

When concluding an insurance agreement, you need to make sure that there is a provision in it that if it is terminated, a deduction from the amount refunded is possible. If there is no such clause in the contract, then the paid contribution may not be received at all.

Upon termination of an investment or accumulative insurance agreement, the policyholder has the opportunity to return part of the money spent on insurance, but in fact this will not be a return of the insurance premium, but a return of the amount of the insurance reserve that was formed at the time of termination of the agreement. The amount of this reserve is established on the day the insurance contract is concluded and must be indicated in the documentation.

For mandatory insurance contracts, the termination procedure is specified in the law or regulations.

Unilateral termination

When concluding an insurance agreement, it may contain a clause allowing the insurer to terminate the life insurance agreement on a loan unilaterally. This is regulated by clause 3 of Art. 450 Civil Code of the Russian Federation.

In order to protect its interests, the insurer has the right, after a reminder of the need to pay the next installment, to terminate the contract with the policyholder. This is indicated in the information letter of the Presidium of the Supreme Arbitration Court of the Russian Federation “Review of the practice of considering disputes related to the execution of insurance contracts” No. 75 dated November 28, 2003.

In its own interests, the insurer may include in the agreement a condition on the possibility of canceling the contract in other cases. If the policyholder agreed to these conditions, then he does not have the right to appeal the insurer’s decision to unilaterally terminate the agreement. The policyholder has the right to unilaterally terminate the contract if such a possibility is provided for in the agreement itself or if the insurer grossly violates its obligations.

Termination by agreement of the parties

When concluding an insurance agreement, the parties may provide for its automatic termination upon the occurrence of certain circumstances. To do this, you will not need to sign additional documents.

Such conditions include, for example, the consequences of failure by the policyholder to pay the premium or next installment on time. It is also possible to terminate the relationship by agreement of the parties if the insurer has found more favorable conditions and is trying to terminate the life insurance contract under compulsory motor liability insurance. But the policyholder very rarely agrees to such conditions and does not want to include in the contract conditions that will be contrary to his interests.

Refund Features

Refund of the paid premium is possible in accordance with paragraph. 2 p. 3 art. 958 of the Civil Code of the Russian Federation in the event that this is provided for by the insurance rules or the life insurance contract.

After March 2, 2016, the insurance company had an obligation, within 90 days, to provide in the contract a condition for the return of the amount paid to the concluded voluntary insurance agreements. The document must provide for a mandatory condition regarding the return of the amount paid in case of cancellation of the contract within 5 working days from the date of its conclusion. The main thing is that an insured event does not occur during this period. These conditions are specified in paragraphs. 1, , Instructions of the Bank of Russia “On the minimum (standard) requirements for the conditions and procedure for implementing certain types of voluntary insurance” No. 3854-U dated November 20, 2015 (hereinafter referred to as Instructions No. 3854-U).

If the policyholder cancels the contract within this period, the premium is returned in full. If the policyholder renounces the concluded agreement within this period, but after the insurance conditions come into effect, the insurer has the right to withhold a portion of the amount paid in proportion to the duration of the agreement, as provided for in paragraphs. 5 and Instructions No. 3854-U.

The amount is refunded within 10 working days from the date of receipt from the policyholder of a written application to cancel the contract, in accordance with clause 8 of Instructions No. 3854-U.

Thus, there are several ways to terminate an insurance contract. The main thing is that this possibility is provided for by the document itself or legal norms.

The lawyers of our company can help you understand all these nuances and correctly terminate the insurance contract.

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.

Question “How to terminate a life insurance contract and get the money back?” is the most pressing issue on the agenda today. The imposition of insurers' services when issuing bank loans has simply gone beyond reasonable limits. They try to force the client to insure his life and health, even to the point of deception, citing the fact that otherwise the loan will not be issued.

Is it possible to refuse insurance at the stage of applying for a loan?

Unfortunately, due to the financial illiteracy of the population, such actions of bank employees are taken seriously. The client takes out insurance, and only later learns that this should be his voluntary decision and that he had a choice.

It is worth noting that in most cases the insurance premium is 1% of the loan amount. Over 1-3 years this will be a good amount. In case of early repayment, the insurance is not recalculated, since the insurance contract remains in force for the entire loan term. That is, if an insured event occurs, the client or his heirs will receive the loan amount. If the client did not have time to repay the debt and an insured event occurred, the insurance premium or part of it goes to the bank. Interest will have to be paid by the client or his heirs.

Not all cases are considered insurance. You must read the contract carefully. To a large extent, insurance is simply wasteful expenses for clients and fabulous profits for insurance companies. The latter are often subsidiaries of banking institutions. That is, the bank and the insurance company have the same owner, so the profit goes into his pocket.

Because of this, credit managers have an insurance plan. Therefore, they try in every possible way to convince or impose this additional service. You should not believe that the client’s heirs will have to pay the loan. The heir is not the guarantor who signed the loan agreement. Therefore, he does not owe the bank anything.

Is it possible to terminate a life insurance contract and return the money if the client has already received a loan? Next, we will try to understand this issue in more detail from the point of view of the current legislation of the Russian Federation.

Insurance according to the letter of the law

Article No. 958 of the Civil Code of the Russian Federation states that the client can return a certain, proportional to the unused period of time, part of the insurance costs in the event that the prerequisites for the occurrence of an insured event have disappeared due to circumstances different from its occurrence. They can be the complete loss of property left as collateral, the reason for which was any event (except for an insured event) or the liquidation of an insurance organization in accordance with current Russian legislation.

Also, this provision of the law provides for the termination of the insurance contract at the request of the client before the due date. In this situation, the client's insurance costs are not refunded. At least, if the insurance contract does not provide otherwise. These rules for refusing the services of insurance companies, in the absence of others, are fundamental when controversial issues arise.

What is a "cooling off period"

This definition appeared in the banking lexicon a couple of years ago. It was the response of the Central Bank of Russia to a large number of complaints from clients about the imposition of insurance services during loan processing. This term implies a period after signing the contract, during which the client has the right to apply for termination of the loan life insurance contract, incurring small monetary costs, and, under favorable circumstances, to do without them. The main thing is that no insured event occurs during this time. The duration of the period is five days.

If the client decides to terminate the contract during this time, but before the contract expires, then the insurance premium is returned to him in full. In the case where the termination was carried out during this period, but after the date of entry into force of the contract, the insurer may retain part of the amount. Its amount is calculated based on the period for which the insurance was issued.

A period of five days is not a single period. This is actually the minimum cooling period. The company can increase it at its own discretion by fixing it in the relevant rules. The client must receive the funds back within two working weeks after the insurer receives the application to terminate the insurance contract. As a rule, insurance is included in the body of the loan. Therefore, the borrower does not receive cash in hand, but simply the insurance premium is written off from the loan body, and the client’s debt to the bank is simply reduced.

How to use this period

The application for refusal of insurance is written in any form. It must be given to the insurer's representative office. If there is no such in the locality where the client lives, the application should be sent by registered mail, with mandatory notification and a list of attached documents, to the legal address of the organization.

It must be remembered that The list of documentation that must be attached to the letter is not regulated in any way. So, if the insurance rules do not stipulate it as a separate clause, then only an application will suffice. It should contain:

• information about the insurer;
• date of termination of insurance;
• number of the contract that is being terminated.

When separately mentioning the list of documents, you must provide the entire set listed.

How to terminate insurance when lending

The most common questions are questions like “How to terminate a life insurance contract on a loan?” To understand whether you can claim a refund of the full amount or only part of the insurance payment, you need to find out the type of contract. The bank, in this case, has the opportunity to act in two ways:

1. Issue a personal insurance policy to the borrower.
2. Connect the client to the collective program.

If, in principle, everything is clear with the first option, then the second has some differences from standard insurance. We are talking about concluding a contract for life insurance of clients between a credit institution and an insurer. Therefore, the banking institution simply adds the client's name to an existing document. Accordingly, a huge part of the client’s costs will not be the payment of insurance premiums, but the lender’s remuneration for connecting the client to the general program. In this situation, it becomes impossible to terminate the contract using the cooling-off period.

It is possible to return part of the paid amount by terminating the contract, when this situation is stipulated in the insurance rules. Some financial institutions provide a certain period when it is possible to fully return your payment. However, most often only a certain part of the payment is returned, proportional to the unused period, from which the financial institution’s commission is deducted. Some companies increase the share of commissions up to 90%. In those rare cases when a financial institution agrees to return the commission fee, it has the right to withhold personal income tax on this amount.

But the amount that was paid for connecting to an existing insurance contract is considered to be a fee for the service. By canceling the agreement, the client receives a free transfer from the bank of an amount equal to the commission paid. Such receipts are subject to personal income tax by law.

You can cancel your individual insurance until the cooling-off period has expired. The main thing in this case is to promptly submit a request to refuse the services of the insurance organization. This must be done no later than 5 working days after signing the cooperation agreement. This period is not affected by the date on which the insurance premium was paid. If you fail to meet this deadline, you can terminate the deal by returning some of the premium, provided that this is provided for in the documents.

This rule also works in case of refusal of the transaction due to the repayment of the loan ahead of schedule. In this case, the return of part of the premium upon termination of the transaction is also associated with the procedure by which the insured amount is determined in the document. If it is clearly tied to the balance of the debt, then there is a chance to return the premium to yourself. However, most often this has to be done with the help of the court.

If the amount of the insurance payment remains unchanged throughout the entire loan period, then it will be impossible to return part of the premium paid. The only exception may be the case when it can be proven that the transaction was imposed by the bank. It is almost impossible to do this.

Important nuances of refusing voluntary insurance

To terminate the contract within five days from the date of its conclusion, certain rules are the main guideline. Most insurance institutions indicate in their contracts conditions under which, if they refuse services, the client can receive a certain part of the insurance costs. The size of this part is proportional to the unused period, from which the costs of settling formalities are deducted. Such costs can reach 25-90%.

In addition, insurance rules often use language that implies a deduction from the amount paid to the client upon termination of the contract. If the insurance documents do not contain this provision, then insurance costs will not be refunded.

When to use a lawyer

Cancellation of the insurance contract within 5 days is the most acceptable scenario for the client. Then it is almost impossible to get your insurance premium back. This can only be done through the court. During litigation, it is worth considering the ratio of the costs of lawyers' services and your own profit as a result of winning the case. It is clear that the principle itself is important. It is necessary to achieve justice and punish those who deceived the client when applying for a loan. It is very difficult to establish the fact of deception. More often than not, loan officers simply don't mention insurance.

To avoid getting into trouble and not getting insurance, you should listen to the following recommendations:

1. Read the loan agreement carefully from “A” to “Z”. As cliché as it may sound, it's worth reading the fine print. But as a rule, the amount of the insurance premium is indicated in the payment schedule.
2. Calculate the amount of your own overpayment by performing simple arithmetic operations. It is necessary to multiply the number of months for which the loan is provided by the amount of the monthly payment. From the result obtained, it is necessary to subtract the amount of funds that the client receives in hand. Next, you should ask the credit manager why the overpayment is so large.
3. Ask about reviews from bank clients. You don’t need to read the reviews yourself on the lender’s website. There are independent online resources where clients of various banks share their impressions and give advice.

What does an application for early termination of an insurance contract look like?

There is another way. You can contact the bank directly. Managers are required to provide assistance in terminating insurance. They will also have to submit documents to the insurance company. It is important:

• do not give away your original insurance contract;
• make a copy of the application to refuse the insurer's services;
• do not listen to the advice of credit managers and do not think for a long time.

It is quite possible to terminate the insurance contract within five days. Then it is almost impossible to get your money back. However, as they say, it is better to be warned, so you should be extremely careful when signing a loan agreement and not take the word of bank employees, and you should also know your civil rights so as not to get into awkward situations.

Updated 10/25/2019

2019-10-05T18:34:56+03:00

Termination of an insurance contract: step-by-step instructions, grounds for termination, features of the return procedure during the cooling-off period and after the cooling-off period ends.

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Thanks to the innovations of the Bank of Russia, termination of a life insurance contract on a loan in certain situations is carried out quickly and in favor of the borrower. Promoting programs with low rates and compulsory insurance is a marketing move by banks. Higher interest without insurance is often the best deal. What to do if the client unknowingly or under duress agreed to additional services?

Legislation on loan insurance

The Civil Code of the Russian Federation defines the right of clients of insurance companies to return insurance if an insured event does not occur and the company’s risk has decreased. Article 958 also determines the possibility of canceling the contract at the request of the policyholder. In this case, the client will not be able to return the paid insurance premium unless it is specified in the agreement.

Amendments made to Law No. 353-FZ deprived credit companies of the ability to force borrowers to take out insurance. The restriction applies only to contracts concluded between an individual and an insurance organization. The new law, in addition to refusing the insurance procedure, allows you to disagree with various additional services of financial institutions.

Legal regulation of termination of a life insurance contract

There is no regulatory act regulating the return of funds upon early repayment of a mortgage. This situation is regulated by Chapter 958 of the Civil Code of the Russian Federation and other federal laws (such as the Law “On the Protection of Consumer Rights”), as well as general insurance regulations.

Banks, in their own interests, refer in this case to clause 3 of Art. 958 of the Civil Code of the Russian Federation. In accordance with it, the insurance premium paid to the company is non-refundable, unless otherwise specified in the insurance contract.

Borrowers can rely on Article 16 of the Law of the Russian Federation “On the Protection of Consumer Rights” in the latest edition, according to which:

• if the consumer has losses as a result of the execution of the contract, then such losses are subject to compensation by the bank in full;
• damages caused to the consumer as a result of violation of his right to free choice of goods and services are compensated. According to the law, banks cannot provide services that require the use of other services that the consumer does not need.

Grounds for termination of the contract

In order to be able to terminate the insurance contract, the client of the insurance company must have sufficient grounds for this. The legislation of our country (Article No. 958 of the Civil Code of the Russian Federation) provides for several such reasons. The most common reasons for filing an application are:

If one of these grounds exists, the process of terminating the contract occurs quite quickly and does not require costs. However, it is worth taking care to have written evidence. For example, if you repay a loan early, it will be enough to obtain a loan repayment certificate from the bank.

Important

Before starting the termination procedure, you should carefully study the text of the contract. If the contract contains references to the fact that it cannot be terminated early, contacting the insurance company is useless.

Termination of the contract during the cooling-off period

The cooling-off period is the period during which the borrower has the right to terminate the loan life insurance contract and return the premium. The terms and conditions must contain a clause that describes in detail all aspects of the software.

Features of the return procedure during the cooling period

Borrowers have the right to terminate the insurance agreement within 14 days without the assistance of a lawyer. According to the law, the bank or insurer must transfer funds no later than 10 days after receiving the request. To receive a refund during the cooling-off period you must:

• take into account the conditions specified in the contract;
• send an application to refuse the service to the insurer no later than 14 days (this period does not depend on the moment of payment of the insurance premium).

Example from practice. A citizen came to a financial institution to get a loan at 14% per annum. A bank representative explained that in order to set a lower rate, it is necessary to guarantee a refund in case the client gets sick or dies. If you refuse insurance, the percentage will be increased to 20%.

The borrower insured life and health for 20 thousand rubles. The next day I wrote a claim to the bank and sent it by email. The document indicated that if it is not considered or refused, it will send a claim to the Central Bank. A couple of days later he was invited to the office to receive money, which was immediately transferred to his account. At the bank, the client wrote an application for early repayment. The debt decreased by 20 thousand rubles.

You can contact not a bank, but an insurance organization, the details of which are given in the policy. If the policyholder does not wait for an answer or receives a refusal, it is necessary to prepare a lawsuit. In this case, the law will be on the side of the borrower. The client will be able to “sue” not only the insurance assigned by the policyholder or the bank, but also penalties and compensation for moral damage. The court will oblige the company to pay a fine and reimburse the costs of a lawyer.

Fact

Before signing a loan agreement, you should carefully read its contents and study the Insurance Rules. Many banks provide for an increase in rates after cancellation of insurance.

The meaning and duration of the cooling period

This condition has a 14 day time limit. The period may be extended by the UK. The innovation makes it possible to cancel the policy and return 100% of the premium.

On January 1, 2018, the Bank of Russia regulated all insurance companies to change the cooling period from 5 to 14 calendar days. This simplifies the process of applying for termination of the insurance contract.

Interesting! Some lenders are increasing the cooling period from 14 to 30 days to attract customers. Such structures include: Sberbank, Home Credit, VTB24.

What types of insurance products include software:

• life insurance;
• vehicle;
• civil liability;
• property;
• financial risks;
• accident insurance.

Which policies are not covered:

• VHI for non-residents employed in the Russian Federation;
• honey. agreement for travelers going abroad;
• insurance for employees assigned to the organization;
• OSAGO.

If the contract does not specify information about the cooling period or the terms are changed, this is a violation of the law. In case of refusal to return the premium, the borrower can apply to the court or other authorities (Central Bank, Rospotrebnadzor).

What documents are needed

Before collecting papers and submitting an application for termination of a life insurance contract, experts recommend analyzing the likelihood of a CV occurrence. The policy can be a solution if unforeseen circumstances arise.

But when the decision to terminate loan insurance is made, you should carefully collect the necessary documents for the insurance company. Since the company may refuse to return the funds if important paper is missing.

Documents required for submission to the insurance company for termination of life insurance on a loan:

An application for termination of an insurance contract must contain the following information:

• information about the person to whom the application is addressed;
• Full name of the applicant (in full);
• passport number and series;
• registration address (actual);
• phone number for feedback;
• policy number;
• loan agreement data;
• the date on which the transaction was concluded;
• the amount of the one-time bonus;
• personal account;
• date and signature.

If the decision on termination is positive, the insurer may deduct from the premium amount the interest for issuing a life insurance policy on the loan.

Where and how to submit

The applicant who has prepared a package of documents for termination must submit it to the insurance company. It is recommended to do this in person. The application will be registered by the office of the Investigative Committee. After the paper is signed and certified by the organization’s seal, the loan borrower will be given a duplicate.

If there is no insurance office in the locality, then the application is sent by express mail. Upon receipt, the IC administrator will sign the notification. It will be the main evidence that the client wished to terminate the life insurance contract on the loan during the cooling-off period.

Review period

After submitting the application, the company has 10 working days to make a decision. The response must come to the applicant in writing, certified by signature and seal.

Loan repayment period

If you missed the cooling-off period, you can cancel the life insurance contract at any time throughout the loan repayment period. This is voluntary insurance. The compulsory insurance contract cannot be terminated during the loan repayment period!

In case of early termination of a voluntary insurance contract, you can return the overpaid money if it is specified in the insurance contract!

In other words, according to the law, you can terminate the contract, but return the money only if the insurance company has good will!

However, if the bank did not inform you that life insurance is a voluntary service, and you actually took out insurance under pressure, then, based on legal norms, you can return the amount of the insurance premium by court decision.

Period after loan repayment

It is possible to talk about how to return the money after the end of loan payments only if it is repaid early. In this case, the rules are the same as when returning money during the loan repayment period:

• if the refund is provided for in the insurance contract;
• By the tribunal's decision.

If the payment period and the insurance period coincide, then it is impossible to return the money for insurance.

What types of insurance are refundable?

Insurance services provided in the lending sector may be voluntary or mandatory. Mandatory procedures include car insurance when taking out a car loan and real estate when applying for a mortgage.

The policyholder has the right to refuse additional services of the following types:

• health, life, property insurance;
• pension, investment, savings insurance;
• risk insurance, for example, a policy in case of layoffs, etc.

The client will be able to reimburse the costs of insurance assigned when applying for a credit card, cash loan, or consumer loan. The result of the return procedure depends not only on the type of lending, but also on the option for providing services.

Financial institutions offer borrowers two types of insurance:

1. obtaining an individual policy;
2. participation in a collective insurance program (substitution of concepts practiced by banks to circumvent legislative norms for the return of insurance).

Until 2018, companies voluntarily returned insurance premiums within 14 days only if they had an individual policy. Once the group insurance was received, the deal could not be canceled and the client could not return anything. In 2018, the Supreme Court of the Russian Federation recognized that insurance programs must provide conditions for refusal. In addition, the Supreme Court confirmed that a consumer has the right to benefit from a cooling-off period when enrolling in an insurance program.

Interesting

If the bank refuses to return the insurance payment within 14 days, citing the refusal by the fact that this is impossible after joining the insurance program, the service consumer has the right to file a lawsuit.

Refund of insurance on outstanding loan after expiration of cooling period

The new law does not apply to policies with a validity period of more than 14 days. In this case, it is recommended to follow the rules specified in the insurance contract. Large banks, for example, Sberbank, VTB 24, Home Credit, still allow borrowers who missed the cooling period to refuse life insurance.

Insurers provide in the documentation conditions for the return of funds paid, taking into account the period used. As a rule, costs ranging from 25 to 90% are deducted from the amount. If there is no such provision in the contract, the paid fee is non-refundable. Then it will be impossible to return the invested funds, since in fact the client voluntarily agreed to the service.

Life insurance does not apply to the cases prescribed in Art. 958 of the Civil Code of the Russian Federation, which provides for the return of the insurance premium upon termination of the insurance contract. You can refuse insurance at any time, but return the premium only if the insurer makes a positive decision. If the borrower missed the cooling period and does not plan to repay early, then you should not expect a refund of the insurance premium.

Waiver of insurance for early repayment

The insurance contract is concluded for the period of loan repayment. The consumer has the right to compensation for the amount paid for insurance services. Since the responsible borrower paid off the debt, the bank's risk decreased and the insured event did not occur.

Example. The couple took out a loan for 600 thousand rubles. A Sberbank employee ordered insurance for 50 thousand rubles. under the pretext: “If you don’t complete it, you will get a refusal.” The debt was repaid ahead of schedule; of course, they did not have time to submit a request during the cooling period. They brought a statement and insisted on their position. The head of the credit department accepted the request. Within 10 days, compensation in the amount of 30 thousand rubles arrived in the account.

An application for cancellation of insurance must be submitted:

1. after complete closure of the debt (as in the example presented);
2. together with an application for early repayment (the insurance amount can be used to pay the remaining debt).

Early termination of a life insurance contract allows the borrower to return the overpayment for insurance under the following conditions:

• in the contract (policy), in the Insurance Rules of the organization there is a clause on partial refund of the insurance premium;
• Insurance payments were made periodically along with regular loan payments.

If the above documents contain a clause on the return of insurance, the bank is obliged to pay it to the client. The insurer does not intend to transfer the money or has returned a small part - you can safely go to court. It is more difficult to return an insurance premium paid in a lump sum, but it is possible if there is a corresponding clause in the policy and the Rules.

Fact

When applying for a loan, the borrower confirmed with his signature that the bank familiarized him with the Insurance Rules, which means the court will take this into account. Everything written in this document will be used to make a judicial decision.

Termination of an insurance contract: step-by-step instructions

The consumer has the right to cancel the policy and demand compensation when contacting the insurance company or bank. A claim or statement must be made in writing, handed over personally to an employee of the organization, sent by mail or to an electronic mailbox. After an illegal refusal, you can write to the Central Bank or file a lawsuit.

Table - Stages of termination of an agreement with an insurer

Stage	Description of actions
1 step. Preparation of a package of documents	Write an application, make copies of your passport, insurance contract, receipts for payment of contributions (other papers to confirm the legality of the request). Sample applications are presented on banks' websites. You can draw up a document in any form or take a ready-made form from the department. The application must be prepared in two copies.
Step 2. Contacting an insurance company with a claim	If it is impossible to contact the insurer, the client has the right to submit a request to the bank. Credit managers should help carry out the termination procedure and submit documents to the insurer. To protect your rights when filing an application you must: ● ask the bank employee to mark acceptance on the second application, which will remain with the borrower; ● do not give managers and insurance agents a sample contract; it is better to present copies of the papers; ● send by mail only photocopies without originals, application by registered mail with notification and inventory.
Step 3. Waiting for the insurer's decision	The company is obliged to respond to the client’s request within 10-14 days. Having no debt increases the likelihood of a positive response. A written agreement is drawn up with the insurance company to cancel the contract. Payments are transferred or the debt is recalculated.
Step 4 Preparation of documents for court	After receiving an unfounded refusal, you can go to court. In addition to the already collected papers, filing a claim will require a written refusal from the bank. It is recommended to record negotiations with employees of a banking organization on a voice recorder. If the bank has not issued the policy in hand, it is worth noting this violation in the statement of claim.

Personal appeal speeds up the process of terminating the contract. If it is impossible to visit the insurer, you must send copies of documents by mail, fax, or email. Attach certified copies of documents to the application and send to the address of the main office of the insurance company. The day the request is submitted will be considered the day the letter is sent. The notification received may be used as evidence in court.

By agreement

The easiest way to terminate an insurance agreement is mutual consent. This principle, which terminates the document, is called “automatic”, since all possible conditions for its termination are spelled out in the contract and agreed upon by both parties. No additional agreements will be required for the contract to terminate. The demand for termination is based on the concluded contract itself. Despite, Although this method of terminating an insurance agreement is used quite often, it cannot be called problem-free, since it affects the basic principles of insurance:

• free will;
• rights of the insurer;
• interest of the policyholder.

The interest of either party is usually the most controversial, since the insured will always be at a disadvantage compared to the insurer.

At the initiative of the insurer

Termination of an insurance document at the initiative of the insurance company can be carried out for the following reasons:

• violation by the other party of essential terms;
• when the possibility of occurrence of an insurance risk changes;
• for other reasons.

The person who is the policyholder is obliged to strictly comply with all clauses of the agreement, one of which is the timely payment of the stipulated amount. Based on Article No. 940-Civil Code of the Russian Federation, the insurer has the right to terminate the insurance agreement early if payments of funds are not made within the agreed time frame or are made incompletely.

The insurance contract may be terminated if there are significant changes in risks.

An important reason for early termination of an insurance document is a change in the risk situation. In this case, the company has the right to demand changes to the contract and an increase in payment amounts. For example, an insured who concluded an insurance document for real estate brought a large amount of flammable liquid onto his territory, which sharply increased the risk of fire. This action led to a violation of the terms of the contract and the insurer has the right to insist on changing it.

In addition, early termination of the contract may occur in the event that the policyholder used dishonest data about the real value of the insurance item and underestimated it.

Often, when resolving controversial issues, both parties to the insurance agreement resort to a peaceful resolution of the situation, without bringing the matter to the courts. In this case, certain provisions of the document may be changed or supplemented due to new circumstances.

At the initiative of the policyholder

Termination of the document at the initiative of the policyholder implies the return to him of all amounts paid, with the exception of funds spent on organizational expenses. One of the main reasons for early termination of a document is the destruction of property for a reason that is not an insured event. Since the subject of insurance no longer exists, the contract becomes invalid.

A more complex issue in legal terms may be the reason when the policyholder became aware of facts of dishonesty of the insurance company. In this case, litigation is inevitable, especially when the company may lose large financial resources.

A common reason for the termination of an insurance document is when the insurance service is imposed on the client. This usually happens when receiving a bank loan. Employees may refuse to issue funds if the client refuses insurance services. Sometimes banks include an insurance payment without warning the borrower. In this case, after receiving the funds, you can contact the bank’s credit department with an application to terminate the agreement. If the bank refuses to cooperate, then all documents, including the bank’s written refusal, should be submitted to the courts. Cases regarding the termination of insurance documents are usually resolved in favor of the plaintiff.

How to make an application

An application for termination of a life insurance contract is written in free form. A standard sample can be found on the websites of banks or insurers.

The application must include the following information:

• full name of the financial or insurance company;
• information about the applicant (full name, passport details);
• information about the insurance contract - date of conclusion, expiration of its validity, details and policy number;
• indication of the reason for termination of insurance (for example, early repayment of debt);
• request to terminate the agreement and return money for the unused period. The document must indicate the method of refund, card number, account to which the client makes monthly payments.
• Date and signature.

After submitting a claim or application, it is recommended to periodically inquire by telephone about the insurer’s decision and about setting the date for the transfer of the refund. When the funds are transferred, you must prepare an application for partial repayment of the debt.

Termination of contracts on voluntary types of insurance

If there is a need to terminate an agreement on a voluntary type of insurance, more than 14 days have passed since the signing of which, you should be guided by the insurance rules. Many insurers specify a special condition according to which, upon cancellation of the agreement, the client can partially return previously paid money in proportion to the unused period. But business expenses will be deducted from this amount. In this case, costs can range from 25 to 90%.

With compulsory types of insurance it is easier, since the principle of refund in such cases is prescribed in the by-laws.

Losses for both parties to the contract

Voluntary termination of the contract does not require the intervention of third parties represented by representatives of the judiciary. All mutual financial claims are resolved taking into account the interests of each party. Early termination of the agreement initiated by the insurance company implies the return to the policyholder of the amounts paid, except for the financial costs of the insurer.

If the document is terminated by the policyholder, he is obliged to officially notify the insurance company about this one month before the moment of termination of the contract. In financial terms, such termination may have various controversial cases. If by the time of notification all insurance amounts have already been paid, then their return is possible only if there is good will of the insurer. In this case, the return of funds paid is possible only by mutual agreement.

Lawyers consider the beneficiary’s demand to change the clauses of the document, including its early termination, to be even more controversial. The third party is not a participant in the process, therefore, presenting any rights to them is considered incorrect and illegal.

In almost all cases of premature termination of an insurance agreement, the insurance company wins.

Judicial practice in case of refusal of termination

A borrower who decides to terminate obligations with the insurance company and return the money for life protection does this by contacting the company’s office. The pre-trial procedure for resolving disputes involves trying to reach an agreement between the parties independently. To do this, the applicant sets out his desire in writing and sends it to the insurance company.

When the decision of the Investigative Committee does not satisfy the borrower, he goes to court. Experts recommend studying the agreement with the insurance company and the bank in detail and analyzing the position of the defendant. If the applicant is convinced of the rightness and can provide evidence of their infringement, it is worth going to higher authorities.

To do this, you need to write a statement of claim in 2 copies. It should contain:

1. Name of the court.
2. Plaintiff's full name, address, contact telephone number.
3. Name of the defendant's organization.
4. Circumstances in connection with which the dispute arose.
5. Available evidence.
6. Applicant's requirements.
7. Cost of claim (if subject to assessment).
8. List of attached documents.

The following must be attached to the application:

• loan agreement;
• life insurance policy;
• official decision of the Investigative Committee.

The application is registered by the office. Then the citizen waits for a call from the secretariat to schedule a preliminary meeting.

After the court hearing, unless the judge requires additional documentary explanations, a decision will be made. It will take effect after 30 days.

In addition to the court, you can achieve justice by sending a claim to Rospotrebnadzor. This body protects consumers and treats the life insurance contract as a product sold to the user.

The complaint must contain the following information:

1. Information about the applicant (full name, address, contact phone number).
2. Insurance company name (address, phone number).
3. The essence of the complaint.
4. Requirements.
5. Life insurance contract number.
6. List of attached documents.

The Central Bank is another structure that can resolve the issue of terminating a life insurance contract and returning the premium paid. This government organization handles any financial disputes. The insurance company cannot ignore the decision of the Central Bank of Russia, otherwise the company risks losing its license. You can file a complaint with the Central Bank online.

It is possible to terminate an imposed life insurance contract on a loan. There are several solutions for this. Many companies are loyal to their customers and return the unclaimed portion of the premium.

New title

Why it is impossible to sue overpayments under “imposed insurance”

In the judicial practice of 2010-2015, there were often cases where the policyholder did not have time to formalize the refusal of insurance, and went to court with a demand to return the overpayment under the imposed insurance contract.

Example. The borrower took out 300 thousand rubles on credit for 4 years. Insurance was taken out for the entire period for 60 thousand rubles. The credit manager did not inform the client that a significant amount was spent on life insurance. In addition to the loan agreement, the citizen was given papers to sign, in which insurance conditions were printed in small print.

A month later, the borrower learned that he had the right to refuse insurance. He wrote a claim to the bank and received a written refusal. The citizen filed a claim and demanded:

• invalidate the loan agreement;
• recover the amount of the insurance premium from the bank;
• recover penalties and compensation for causing moral damage.

The court recognized the fairness of the requirements.

Many similar cases in the courts a few years ago were successful, since consumer rights were clearly violated. But loan and insurance agreements have been reworked over the years. In 2019, the chances of canceling the imposed insurance and returning the overpayment are practically reduced to zero. Insurance is now offered openly.

What to do if you receive a refusal from both the insurance company and the regulatory authority

As lawyers advise, you will have to prove in court the invalidity of the voluntary insurance contract. To do this, you need to appeal with arguments that you were not properly informed or pressure was put on you. You may not have realized that when you took out a loan, you also signed a veiled life insurance agreement.

The result of a judicial review directly depends on how competently the arguments in favor of the invalidity of the contract are selected and the claim is drawn up. Jurisprudence in your area of ​​residence is also important.

What does widespread judicial practice show? Does it make sense to defend your rights if the insurance company categorically refuses to pay?

Having analyzed the reviews of court cases in 2018, the following conclusions can be drawn:

1. The courts always side with the borrower if insurance companies refuse to return money during the cooling-off period. In this case, the law is on your side, you can safely act. In addition to the amount of the insurance premium, the plaintiffs were able to receive compensation for moral damage, and the insurance companies were punished with a fine.
2. The courts are very reluctant to side with the borrower if the loan has not yet been repaid.
3. If the loan is repaid and the borrower manages to prove that insurance was imposed, then there are cases where the dispute is resolved in favor of the borrower.

But even in the latter case, there is a risk that payments to the plaintiff will be meager. The fact is that insurance companies often include in the actual expenses incurred the services of agents, who estimate up to 98% of the insurance premium paid by the borrower. Legal literacy and perseverance of the plaintiff are also important here.

Thus, even after winning the trial, a person may receive pennies that are not worth such hassle.

Conclusion: the situation with imposed voluntary insurance is easier to prevent than to correct. Ideally, you should be attentive to any papers, and before signing agreements, including credit agreements, give them to lawyers for analysis.

If you decide to purchase life and health insurance, be sure to check the contract for a clause on the return of funds in case of possible early termination. If the company does not provide a refund, look for another insurer.

If a credit institution also insists on obtaining insurance from a certain company, then it is better to choose another bank. Such measures will help save a very substantial amount, which is greater the longer the loan term and the loan amount.

What to do if the company refuses to terminate the contract early and is it possible to terminate it unilaterally?

There may always be a case when the insurance document must be terminated early. Car owners often encounter such situations when they need to terminate a civil liability contract. First of all, you should collect all the necessary documents and contact the insurance company with a corresponding application. This applies not only to motorists. The reasons for termination of the contract must be reasoned and supported by documents. In case of refusal, you must request a written explanation from the company of the reason. Next, you can consult an experienced lawyer and submit documents for consideration by the courts.

If the policyholder has correctly explained his motives and submitted the necessary documents, the relevant authority will take his side and the agreement will be terminated by a court decision.

Early termination of the MTPL agreement

The vehicle owner has the right to terminate the current MTPL policy early, before the expiration of its validity period.

This right of the car owner is not limited in any way by law.

However, if the termination occurs simply at the will of the car owner, insurance companies have the legal right not to issue a refund of the unused portion of the insurance premium.

To this case we should add a number of situations when a refund of part of the payment under compulsory motor liability insurance is not made. These include:

• The MTPL agreement is terminated at the initiative of the insurance company on the basis of identified and confirmed information that the client, at the time of registration of the MTPL, provided false information affecting the cost of the policy.

For example, he slightly “improved” the experience of one of the drivers, adding a few extra years to him, or “made a mistake” in the engine power. As a result, the insurer incorrectly assessed the degree of risk and calculated a lower cost for the compulsory motor liability insurance policy.

By the way! You may find it useful: Entrepreneur Fedorov entered into an agreement with entrepreneur Sidorov

• Cancellation of the MTPL policy due to a long period of non-use of the car.

For example, a car owner is planning a six-month business trip to the North and will not drive a car during this period. As a rule, the policyholder’s application for a refund of part of the insurance premium in such a situation is refused.

• Another situation is related to cases of liquidation of an insurance company. The practice here is that if a company has filed for bankruptcy or its license to carry out compulsory civil liability insurance has been revoked, then the probability of getting back part of the funds paid for the compulsory motor liability insurance policy tends to zero.

Conclusion

Terminating the life insurance contract within the first 14 days or upon early repayment of the loan is the most convenient option for the borrower. After the cooling-off period, the insurance premium will most likely have to be returned through legal action.

Don't be afraid of ships. Insurers and banks rarely pay out money voluntarily upon application. Out of 10 clients dissatisfied with insurance, only 2-3 people bring the matter to court. Therefore, it is profitable for credit companies to return money not to everyone, but only to the most persistent borrowers.

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