Insurance when applying for a mortgage loan is perhaps the main condition for obtaining a loan for a client of a banking organization. Sometimes banks offer one type of insurance - mortgage, life and health or title, and sometimes a comprehensive option. When concluding an insurance contract, individual citizens are given the opportunity to obtain a refund of mortgage insurance, however, the availability of this right depends on the insurance organization and the banking institution with which the borrower is registered.

Mortgage lending involves concluding an insurance agreement in case of unforeseen circumstances to immediately repay the insured person's debt to the bank, but sometimes it is possible to return the money for insurance in full or in part.

When concluding a mortgage agreement, several types of insurance are assumed:

1. Voluntary, which includes life insurance for the borrower, as well as title insurance against loss of rights to the purchased property.
2. Mandatory, which implies full repayment of the loan to the bank upon the occurrence of insured circumstances related to the loss of property.
3. Complex, which is not mandatory, but is often imposed by banks on pain of refusal to issue a loan for the purchase of housing.

The possibility of returning money transfers must be indicated in the mortgage and insurance agreements, so the absence of this clause actually deprives citizens of the right to demand the return of their own funds for services not provided.

Refund of mortgage insurance is possible upon concluding the following type of agreements:

Name	Item	Reason for awarding compensation	Possibilities	How is the refund amount determined?
Property	Property purchased as collateral, however, compensation is taken into account only for actual damage to the housing structure or for its destruction. Causing damage to finishes and repairs is not expected.	Destruction of a home due to floods, natural disasters, fire, explosion, etc.	It is possible to return the money paid, but only if you repay the loan early or refuse the services provided, if they were imposed.	It is set individually, but in case of early repayment it is no more than 50%, and in case of complete refusal after the conclusion of the agreement in full.
			In accordance with the Federal Law "On Mortgage", this insurance program may be mandatory for the conclusion of an agreement, and then the return of insurance on a mortgage loan is not possible if the loan is not repaid ahead of schedule.
Life and health	The life and health of the borrower in case of unforeseen death or disability.	The intentional murder of the borrower, death in an accident, death by negligence, etc., or getting a disability as a result of work, an accident, etc., is assumed, but only if the disability was not obtained as a result of a crime or offense.	Can be returned at any time using the guarantee.	Returned in proportion to the action - in full or in part.
Title	The right to acquired real estate in the event of its loss.	The emergence of third parties' rights to real estate.	It can be carried out at any time during the term of the agreement, but it is recommended to use it until the loan is fully repaid or within three years from the date of registration of the loan if the apartment was purchased on the secondary market from an heir or donee.	Depending on the period of use.

Banking and insurance organizations do not have the right to impose one or another package of services, with the exception of issuing a loan with compulsory property insurance. It is noted that the borrower has the right to involve a lawyer on his part and change some of the terms of the contract, but this practice practically does not occur.

How to get your mortgage insurance back

When taking out a mortgage for an apartment, the housing remains as collateral for the bank, backed by insurance contracts, but, as a rule, neither the bank nor the insurance organization will tell you whether the insurance can be returned.

The procedure for returning mortgage insurance completely depends on the type of contract drawn up, so if such questions arise, the first thing to do is to familiarize yourself with the terms of the agreement and the possibility of demanding the paid funds back.

In case of early or planned repayment of the mortgage

Insurance for mortgage repayment is not returned as planned, so it is possible to return insurance after repayment of the mortgage only if the payment was made ahead of schedule. The absence of the occurrence of insured circumstances does not mean the absence of fulfillment of obligations by insurers, so you can forget about the money paid.

If you repay the loan before the expiration date of the mortgage agreement, then the borrower will receive a portion of the insurance back upon early repayment of the mortgage. The amount of deductions depends on how early all debts were paid.

If a housing loan was issued for 20 years and paid off within 10, while the contribution to the insurance company amounted to 150,000 rubles, then the borrower has the right to count on half of the amount paid, i.e. – 75,000, since the company’s services have been provided over the past decade.

To process the return of funds, it is enough to contact the insurance organization with a corresponding application and attach documents from the bank about full repayment of the loan.

After the death of the borrower

Upon the death of the debtor, his relatives are obliged to inform the banking organization and the insurance company about this. If death is recognized as an insured event, with life and health insurance taken out, then the debt to the bank will be closed. Returns are not allowed.

In the absence of life and health insurance of the mortgagee, all responsibilities for making payments to pay for the mortgage pass to the heirs, as well as receiving the policy, the funds paid by the borrower to repay the loan are taken into account in full. The period for assigning payments and the validity of guarantees are suspended until the entry into inheritance rights.

You can get a refund for insurance if for some reason it is not suitable for the new owners - the amount returned is proportional to the unused period of the guarantee.

To receive a partial refund you must:

1. Report the death of the borrower to interested organizations.
2. After entering into inheritance rights, re-register the mortgage agreement in the name of the new owner.
3. The insurance company refuses to renew the contract and submits an application for the return of part of the funds.

Within a specified time, the money will be transferred to the account of the borrower's heir.

When refinancing

When refinancing, it is important to understand not only the process of re-signing the contract, but also how to return insurance on a mortgage loan taken out earlier.

There are several options for borrowers:

• extend the policy if the company is accredited with the banking organization in which the new loan is issued. Funds paid are credited in full;
• terminate the contract and return part of the funds, and then transfer obligations to an insurer that is accredited by a banking organization. The basis for termination of the agreement is the lack of accreditation of the insurer with the new bank.

Refinancing without property insurance is impossible, since the property remains pledged to the bank as a guarantor of payments, and insurance is a way to receive funds issued to the borrower in case of unforeseen circumstances and loss of property.

To process a return you must:

1. Contact the banking organization and announce your desire to refinance to another institution.
2. Inform the insurance company of your desire to terminate the contract and return part of the funds paid.
3. Carry out the refinancing procedure with re-conclusion of the insurance agreement.

The repayment can be made in parallel with the registration of a new mortgage loan.

Unilaterally, if a service has been imposed

Unilateral refusal of the insurer's services is possible if the services were specifically imposed on the client.

Funds can be returned in full or in part depending on the circumstances.

• The full amount of money can only be returned before the start of the mortgage. Until the established provisions come into force, a citizen can terminate the insurance contract without any damage.
• Partial money is returned depending on the period of use of insurance services, so the earlier the application is submitted, the greater the amount will be returned.

To refuse an imposed service, a citizen must:

1. Submit an application for refusal to the insurance company, indicating the reason for this decision.
2. Wait for a response from the insurance company.
3. In case of refusal, appeal the decision in court; if the answer is positive, receive funds within a specified time.

Imposed services within the framework of Russian legislation are recognized as invalid, but it is almost impossible to determine the degree of their imposition, so part of the amount will most likely go to the insurance company.

Borrower's actions in case of insurer's refusal

If the insurance contract contains a clause on the possible return of funds paid to the organization, then usually no questions arise. At the same time, there are situations when an unmotivated and unfounded refusal comes.

In this case, the citizen must:

• contact the insurance company with an application for clarification of the refusal with a request to provide a document in writing;
• attach a copy of the application and the response thereto;
• attach all supporting documents.

You can also indicate the reason why it is necessary to make a return; sometimes companies accommodate customers and return money, even if there is no such clause in the contract.

Accompanying documents that must be attached when applying for a refund for insurance include:

• passport of the insured person;
• mortgage agreement;
• agreed payment schedule;
• certificate of fully repaid debt, if any;
• policy;
• housing documents;
• details of the account to which the money will be transferred if the decision is positive.

Refund of Sberbank mortgage loan insurance step by step

Sberbank is the largest banking organization in the country, so it is best to consider ways to return funds using this example.

There are some features of returns depending on the timing of the application:

Refund of insurance after paying off the mortgage ahead of schedule is carried out as follows:

1. A corresponding application is drawn up in the name of Sberbank and the insurance company.
2. All necessary documents are attached to the application.
3. A package of documents is submitted to Sberbank and the insurance company.
4. It is imperative to ensure that the bank employee marks the application and its acceptance; the package of documents can be sent by mail with acknowledgment of receipt.
5. The last stage is waiting for a decision.

In case of an unreasonable refusal, you must contact Sberbank and the insurance company for clarification. After receiving a written response from the institutions, you can contact the court, the prosecutor's office and Rospotrebnadzor if the terms of the contract are truly violated.

Recovering money for insurance is a long and complicated process, as most interested parties prevent it. No insurance company and no bank are interested in returning funds to the borrower without good reason.

If you need help getting your mortgage insurance money back or are interested in getting insurance, we recommend that you sign up for a free consultation with our lawyer using a special form. We will definitely help.

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During the loan issuance procedure, banking organizations may resort to various methods to include a package of additional services in the insurance. As a result of these actions, when repaying loans early, borrowers face many problems associated with the inability to return insurance funds.

Often, a refusal to pay an insurance premium that has been paid for the entire period of validity of the loan agreement is unlawful, as a result of which the borrower has to defend his rights directly in court.

What is loan insurance?

The insurance agreement provides for the bank's protection in cases where the borrower is unable to repay the borrowed funds. Thus, loan insurance protects, first of all, the interests of the bank, which is why this service may be included in a package of additional services that are stated as mandatory when applying for a loan.

Insurance under the contract is a service that is concluded at the stage of processing the main cash loan. In this case, the insurance policy involves the payment of certain funds, which can be made together with the main monthly payments, as well as repayment of the main payment.

Conditions for early termination of the insurance contract

After the loan is terminated, you must try to recover at least part of the premium paid directly to the insurer. If you repay the loan early, you must contact the main insurance company with the following package of documents:

• a copy of the main loan agreement;
• borrower's passport;
• a certificate confirming repayment of the entire loan amount in full;
• a statement providing for the possibility of early termination of the main insurance contract and a partial refund of the amount of money.

In this case, you must contact the insurance company directly with this documentation.

How to return part of the insurance premium?

To receive a partial refund of insurance funds, borrowers can use two methods:

1. Direct contact to the bank where the loan was issued. But this option is only possible if the insurance policy was purchased during the procedure of taking out a loan along with a basic package of services. In this case, it is better to submit the application immediately after repaying the loan. In any case, before visiting the bank, you need to re-read the loan agreement and make sure whether there is a possibility of returning the insurance.
2. The client contacts the insurance company with a certain package of documents. The insurer must provide documentation, which includes a passport, contract, certificate of absence of debt, as well as account details for transferring the insurance portion of the premium. It is also necessary to attach all receipts confirming all payments made for this service.

Where to contact?

In case of early repayment of the loan, in order to terminate the main insurance contract, you must contact the bank or directly to the insurance company. At the same time, it is necessary to keep all the documentation, including the refusals of banks and the insurance company - all this can be useful for the implementation of a positive decision in court.

Required documents

The insurance return process involves the preliminary collection of important documents that will be needed to complete the application for copies. To contact the insurance company you will need the following package of documents:

• Passport;
• existing loan agreement;
• original insurance policy;
• bank statements confirming the availability of all payments.

What to do if insurance is included in the package of additional services?

Sometimes banks inform you during the loan application process that there is a special loan insurance program provided by the credit institution itself. That is, when applying for insurance, the insurance company is not involved, and the service is officially considered a commission payment directly to the bank.

Thus, the borrower most likely will not be able to appeal in court for the return of the insurance, because he himself voluntarily, according to the contract, agreed to additional commission deductions to the bank, which were called loan insurance premiums when registering. But in any case, you can try to solve the problem in court, as well as seek help from various legal organizations and solve the problem of at least a partial return of the commission.

Help from non-profit advocacy organizations

You can always get a portion of your insurance premiums back by contacting highly qualified specialists in this field. There are non-profit institutions that can protect the rights of credit consumers who find themselves forced to impose mandatory insurance services.

These institutions can provide a wide range of services and are official representatives in resolving various issues of obtaining compensation for full repayment of the loan.

Judicial practice on the return of funds

When you contact a banking organization on your own, some difficulties arise in which the bank refuses to pay the insurance portion of the premium. At the same time, today there are free organizations that provide legal services for the return of insurance payments when repaying a loan.

Qualified specialists of these institutions have quite a significant regular practice, which confirms their experience in resolving various situations in a banking organization. Assistance to borrowers is provided in each region, and often the court decision remains on the side of the borrower and he receives part of the premium on the insurance premium.

At the same time, all payments imposed by the bank are returned under the terms of the loan agreement, the clauses of which contain the possibility of returning funds for insurance.

Highly qualified lawyers will advise the client in collecting the necessary list of documentation required at each stage of the money return procedure. Reliable specialists allow you to prepare high-quality claims that are submitted directly to financial institutions. Specialists will advise the client on drawing up a statement of claim, which will help resolve the issue of insurance return. In this case, the client can be freed from direct participation in the judicial resolution process if he writes the appropriate power of attorney to a legal entity that has the right to represent the interests of the borrower at the meeting.

Features of the return of insurance upon early repayment in VTB 24 and Renaissance Credit

VTB 24 uses its own insurance program. This program includes certain rules, thanks to which the borrower can terminate the contract at any time, while the return of insurance funds paid is impossible.

The insurance company allows you to return the amount paid to customers only if you apply within 5 working days after the direct execution of the insurance contract. Also, since 2016, a law has come into force, which provides for the possibility to refuse all insurance imposed by the bank.

This provision applies directly to all concluded VTB24 contracts. But the bank provided for some nuances - if the client signs an agreement for participation in collective insurance, the insurance may not be returned.

The conditions for the return of funds under the insurance procedure of the Renaissance banking organization are almost identical. An application for termination of an insurance contract can be submitted if there are no risks of occurrence of insured events. The insurance premium can be partially refunded in accordance with the contract, while the program is also valid for early repayment of the loan. Any refusal of the bank can be challenged in court, referring to the loan agreement, if it contains the appropriate wording.

Today it is almost impossible to get a loan from a bank without purchasing an insurance policy.

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However, according to, only insurance of property, which is transferred to the bank as collateral, is mandatory. The bank has the right to offer other types of insurance to the borrower only on a voluntary basis.

Therefore, in order not to break the law, bankers try to stimulate the purchase of a policy with more attractive loan rates or the inclusion of insurance costs in additional banking services. As a result, borrowers are faced with the big problem of returning insurance money when repaying the loan ahead of schedule.

Grounds for early termination of the contract

If the loan is repaid ahead of schedule, the borrower has the right to demand the return of the insurance amount for the unused period of the contract. The basis for this is the norm of clause 3, the content of which is presented below:

Based on paragraph 1 of Art. 958, by repaying the loan before the term specified in the contract, the insurance risk also becomes insignificant. And according to paragraph 3 of this article, the insurer in this case can receive only part of the insured amount, but the rest must be returned to the insured person.

Clause 7 “On the organization of insurance business in the Russian Federation” also confirms the borrower’s right to receive funds for the balance of unused insurance days.

And finally, a letter from the Ministry of Finance of the Russian Federation from the insurer requires:

1. Return to the borrower the balance of the unused portion of the insurance amount, reduced by the actual insurance period.
2. Exempt the borrower from paying any taxes on this amount.

Will this fact affect your credit history?

The norm “On Credit Histories” provides for a specific template for the borrower’s credit history. It consists of several parts, one of which is informational.

The information part of the story includes the following information:

• information about all requests from the borrower to banks;
• refusals and approvals for issuing loans, indicating the reasons;
• Failure to make payments more than two times in a row.

The title and main sections of the credit history contain:

• personal data of the borrower;
• data on loans taken;
• amount of loans;
• percent;
• repayment terms, etc.

Only the borrower himself can familiarize himself with the additional part of the history; this section is closed to other persons. As you can see, there is no information in the credit history about the exercise of the borrower’s right to demand the return of the insured amount.

Therefore, there is no need to be afraid of spoiling it. Credit histories are stored in the BKI and the borrower has the right to review the document free of charge once a year and check the correctness of its completion.

Reasons for bank refusal to pay

If the bank’s additional services include loan insurance or the client’s health and life, then such an agreement is not drawn up directly with the client. The issuance of an insurance policy takes place between insurance and credit organizations, i.e. between legal entities.

With bank loan insurance, the return of insurance is very problematic.

After all, the wording here is completely different; it can be formalized in the form of a bank commission, organizational expenses, etc. And even by filing a claim in court, the borrower does not have the right to refer to the insurance law. In some cases, in order not to lose customers, banks make some concessions.

If the borrower writes a free-form application addressed to the manager demanding the return of paid additional services due to the early termination of the contract, then the bank may be loyal to this and pay some part of the money. But the decision on payment remains only with the bank.

Even if you file a lawsuit, you still will not be able to change the situation in your favor. The law does not prohibit banks from establishing commissions, bonuses, and reimbursement of organizational expenses.

Some banks still return a certain part of the money to their clients, which is stipulated in a separate clause.

For example, Sberbank’s “Collective Insurance Program for Individual Borrowers” ​​provides for full early repayment of the loan. Based on clause 4.3 of the Program, the borrower has the right to receive an insurance amount calculated depending on the remaining loan term (see below).

If the client writes a written refusal of this Program to the bank within 14 days after the start of the agreement, then the entire amount taken for connecting to this service will be returned to him.

Who can help me get my money back?

And yet, how to return the loan insurance fee? If you have received a refusal by submitting a corresponding application to a creditor or an insurance organization, referring to clause 3 of Article 958 of the Civil Code of the Russian Federation, then it will be very difficult to receive the overpaid money for insurance.

However, by contacting an experienced lawyer, you can use two options to solve the problem:

1. For the bank. The loan agreement contains a provision stipulating insurance for the entire period of the transaction. But if the contractual relationship is terminated, then, accordingly, the insurance contract must also be terminated.
2. For an insurance company. The subject of insurance was the risk of non-payment of the loan. If the loan is repaid ahead of schedule, the insurance risk automatically disappears. This is stated by the norm of the Law in accordance with paragraph 3 of Article 958 (paragraph I):
   

   

   Therefore, the insurer is obligated to recalculate and return the remaining insurance amount.

   What to do if this service is included in an additional package

   If the borrower has issued a credit line that includes a special insurance program, then the bank itself is the insured.

   And since the borrower did not enter into any contract with the insurance company, then, accordingly, he cannot appeal to it regarding early termination.

   The bank included the insurance amount in the loan servicing as a commission fee. Another trick of the bank is the so-called “Package Services”, which the lender sells when applying for a loan. This includes, in addition to insurance, a whole range of additional services. This includes SMS sending of information, issuing debit cards and much more.

   In this case, it is impossible to refuse only the insurance from this Service Package. And if you refuse the entire Service Package, the bank will most likely refuse to issue a loan.

   For the consumer of banking services, there is one way out of this situation - to appoint himself as a beneficiary. This means that the insurance premium will be paid to the borrower.

   Based on the norm in clause 2, the borrower, when taking out insurance, has the right to determine the beneficiary and this should be done before concluding a loan agreement.

   Before signing the documents, carefully read all points of the document. Pay special attention to the list of paid additional services and whether you are connected to an insurance program.

   If you do not see the need to provide any of the services, refuse immediately.

   To do this, you should submit an application in any form to the bank for refusal of additional services, as well as for the return of an equivalent part of the funds. Submit the application either by registered mail or in your own hand to the bank with a note indicating its receipt.

   If the bank makes a negative decision on your application and refuses to return part of the amount, feel free to contact the court and Rospotrebnadzor.

   To take part in the trial of a representative of Rospotrebnadzor, you can, in accordance with, submit a corresponding application to the court. The supervisory authority’s specialist will give his opinion on the legality of the bank’s decision, which will significantly influence a positive court decision in your favor.

   Refund of part of the insurance

   How to return life insurance on a loan if the contract provides for the case of early repayment of the loan? There are certain time frames, as well as conditions for the return of insurance money specified in the contract.

   So, if the client submitted an application to the insurance agency or the bank (provided that the bank is the policyholder) no later than 1 month from the date of conclusion of the contract and the defendant’s issue was resolved positively, then the funds are transferred to the specified bank account of the borrower. But services for drawing up the contract will be deducted from the refund amount.

   If a month has passed and the client has asked to return the money due to him, the amount will be reduced in proportion to real time.

   The defendant's decision is usually made within 1 month. If the decision is positive, the money is transferred to the client’s account, and if it is negative, the client has the right to appeal to the courts. The period for consideration of a claim is regulated by the legislation of the Russian Federation.

   The conclusion is this: a refund of insurance money is possible if it is stipulated by the contract. Otherwise, the decision is made by the policyholder and the decision he makes depends only on his loyalty. Going to court does not always bring results.

   This leads to the following conclusion:

   • carefully study the contract;
   • balance possible benefits with inevitable risks;
   • only then sign the contract.

   Where to go

   When claiming overpaid insurance money, borrowers must contact Rospotrebnadzor and the court.

   Immediately after closing the credit line, you must collect copies of the following documents:

   • loan agreements;
   • passports;
   • certificate issued by the bank stating that you have fully repaid the loan (sample below):

   

   
   In addition to these documents, you should write an application addressed to the insurer requesting that you terminate the insurance contract early and return part of the insured amount (see below for a sample application).
   

   

   It is worth paying attention to the fact that, based on practice, borrowers often make a typical mistake. Even if the insurance was issued by an insurance agency, the borrower still requests a refund from the bank.

   This step is justified only if the bank acted as an insurer. But in other cases, you should only contact the insurance company.

   Application to the bank. Pre-trial settlement of the dispute

   To resolve the issue of returning the insured amount, the borrower must contact the bank (if the bank was the insured) with an application or claim, a sample of which is presented in the file below.

   The application must be submitted in two copies, one of which must have a bank employee’s mark on acceptance. If it is not possible to bring the application in person, you can send it by registered mail with a prepaid notification of receipt by the addressee.

   Additionally, an inventory of attached documents should be made. In parallel with filing a claim with the bank, you need to submit an application to provide complete information on the movement of funds in your personal account. In case of refusal - contact Rospotrebnadzor.

   Appeal to regulatory authorities

   The activities of financial and credit organizations are controlled by Rospotrebnadzor. Therefore, a similar application that you submitted to the bank should be sent to Rospotrebnadzor, a sample of which is presented below.

   A copy of the claim to the bank with its response should be attached to the application.

   Lawsuit

   The borrower can apply to the courts without submitting an application to Rospotrebnadzor. To have your case considered in court, you must submit a statement of claim, which is presented in the file below.

   One type of mortgage insurance is required by law, others are taken out on a voluntary basis, but both the first and second types can, in some cases, be refunded in full or in part. Mandatory insurance of mortgage products includes protection of the loaned property from damage and loss, voluntary insurance includes title insurance, comprehensive services, protection of the borrower’s life, health, insurance against job loss, etc.

   Insurance return table:

   There are two options for returning mortgage insurance:

   • full return;
   • partial.

   It is possible to return the funds in full during the so-called “cooling period”, when the borrower retains the right to refuse insurance services (but only if the contract has not entered into force). A partial refund occurs in case of early repayment of the loan, termination of the contract for certain reasons, or when the client exercised the right of refusal during the cooling-off period, but after the contract came into force (i.e. when the insurance service has already begun to be provided).

   The return rules are described in the insurance contract, so you should study it very carefully before signing. It is also necessary to pay attention to whether they conclude an individual contract with you or offer to join a collective one. You can refuse insurance when receiving a loan, during its validity and after closing by submitting an appropriate application and providing justification for the return.

   Waiver of insurance when obtaining a mortgage loan

   As mentioned, purchasing property damage and loss insurance is mandatory. By law, the issuance of other policies does not serve as a condition for issuing a loan, but managers working with clients often keep silent about this, imposing additional services - health protection, life protection, title insurance, etc. This requirement is illegal, and the client has the right to refuse to sign such documents immediately at the time of registration of mortgage papers. You can simply not sign.

   If you refuse before the loan is approved, there is a chance that the bank will refuse a mortgage loan, although this is illegal. Therefore, it makes sense to take this action after receiving approval.

   In addition, the client has a “cooling off period” of 14 days, during which he has the right to refuse the already purchased voluntary insurance and receive a refund for the services imposed.

   If the service is already being provided (i.e. the request for a refund occurs after the start date of the insurance under the contract, but before the expiration of the 14 days established by law), the insurance company will return the money minus an amount proportional to the number of days that have elapsed from the start of the validity. Otherwise, the money will be returned in full.

   If the borrower has not entered into a personal insurance agreement, but a collective one, returning the money will be difficult, since a collective agreement is a tripartite agreement between the client, the bank and the insurance company. It is not subject to the “cooling off period” legislation.

   Refunds for such insurance may not be provided at all, so you should carefully study all the documents when signing them and ask the manager for a copy of the insurance rules under the collective agreement (they are usually not issued in person).

   Is it possible to get money back during the contract and with early repayment?

   If the client repays the debt as planned, the paid insurance premium - no matter whether compulsory or voluntary - will not be returned. A different situation arises with early repayment: a portion proportional to the unused days of insurance is usually returned to the client’s account. For example:

   • insurance premium – 20 thousand per year;
   • the loan is repaid in half the period, i.e. six months after making the annual contribution;
   • the borrower has the right to count on a return of 10 thousand - the insurance premium for the “unused” months.

   In this case, you should contact the office of the insurance company (or bank) with:

   • passport;
   • insurance policy;
   • loan agreement;
   • payment schedule;
   • certificates of debt repayment;
   • return application.

   You can act in a similar way when refinancing, since the debt to the original bank has already been repaid (if you plan to switch to another insurance company.). If refinancing occurs within one bank (switching to a lower rate in the same institution), then in the vast majority of cases the insurance is recalculated, in which the amount required for return is simply used to pay for the new contract.

   You can refuse voluntary insurance by submitting the appropriate application, passport and policy. At the same time, some companies stipulate in the contract the return not of part of the premium in proportion to the unused period, but of some portion of it, most often half. So in the case of the above example, 10 thousand must also be divided by 2, i.e. There will be 5000 rubles for return.

   If the borrower stops paying insurance premiums during the term of the contract, the bank or insurance company from a certain point onwards regards this as a unilateral desire to sever the relationship. Unless otherwise provided by the clauses of the agreement, funds already paid to the mortgage client are not returned. In addition, the insurance company may charge fines and penalties for unpaid premiums to a client who is late in payment, and even refer the case to court or a collection agency. In parallel, the bank reserves the right to raise the interest rate.

   The latter will also happen if the borrower refuses to pay for the renewal of an already purchased policy. The money paid will not be returned, and the rate will increase by a certain number of percentage points.

   The main recommendation to all mortgage borrowers is to carefully study the documents before signing them. The loan agreement may contain clauses regarding insurance, and the insurance agreement itself necessarily provides for a listing of the rules for the return of funds and the procedure for such.

   Perhaps waiving insurance will help save on payments, but in response the bank will raise the interest rate. In addition, insurance is a guarantee of protection against unforeseen situations for both the bank and the client, so you should evaluate the pros and cons before deciding to sign or refuse additional services.

   It should be remembered that the return of money under mortgage insurance is possible only before the occurrence of the insured event. If this occurs, the service is considered provided in full and money is not refundable.

   If the insurance is concluded under a collective agreement, then even if other rules are observed, it may be difficult to return what was paid; you must definitely ask the manager for the terms of the collective agreement and read them or contact the company that enters into an individual agreement. True, in some banks, for attracting a third-party organization, the interest rate on the loan may rise.

   Possible difficulties may include the insurance company refusing to refund. If all the documents are in order and there is a basis for payment, you will have to prove your case in court.

   Housing loans are in great demand today. The economic situation in the country has stabilized, so people are willing to take on mortgage obligations. However, the relationship with the creditor, especially such a long one, has a number of features.

   Many mortgage payers are interested in the question of whether mortgage insurance can be returned, and if so, what is the best way to do this. To understand all aspects of this issue, let's consider the situation from different points of view: on behalf of the bank, on behalf of the insurer and from the position of the borrower.

   For a bank, a housing loan contains many risks:

   • a long loan term increases the risk of non-payment;
   • the interest rate on a mortgage is lower than on a consumer loan, and the bank is looking for ways to make money;
   • a client who refuses to purchase a policy is considered unreliable.

   In order to get as much money as possible from the borrower and protect themselves from losses, bankers sell comprehensive policies to everyone.

   Bankers sell comprehensive insurance packages to all mortgage holders.

   For a mortgage, you may be offered different types of insurance services:

   • insurance of the property itself against damage or destruction;
   • life, disability and health insurance of the borrower (sometimes co-borrowers);
   • title (relevant for secondary market objects for a period of 3 years from the date of purchase and sale);
   • comprehensive insurance (includes all three types mentioned above).

   Only insurance of real estate, which is the subject of collateral, is mandatory under Russian law. Before you sign a contract with an insurance company, remember the following points:

   • the banker promotes the services of his insurer and receives a percentage of each policy sold;
   • you have the right to choose another insurer;
   • even if you have already purchased a policy, you can switch to another insurance company if the conditions are more favorable and the payments are lower;
   • standard policy protects only the interests of the bank. If you want to insure your own investments (for example, the amount of the down payment), the cost of insurance will increase.

   Often, in order for a client to agree to purchase a policy from a bank partner, he is offered a lower interest rate, or other tricks are used, including psychological pressure. Before you make a decision, you should make a calculation of how much you will pay with a reduced rate and how much with the waiver of imposed insurance services.

   Note that even Sberbank cannot refuse you a mortgage, citing the fact that you have not purchased comprehensive insurance. However, the refusal can be explained by any other reason, so that you do not have a reason to file a complaint with the Central Bank or Rospotrebnadzor.

   Pressure from bankers acting as agents for insurance companies is contrary to the right of every consumer to freely choose between different service providers. As a result, the Central Bank took note of numerous complaints from mortgage holders and introduced a 5-day cooling-off period, during which the borrower can freely refuse the insurance imposed on him. This measure seems to be correct, but our compatriots use it infrequently.

   What to expect from an insurer

   An insurance company is a third party that will pay the client’s debt to the bank upon the occurrence of an insured event. For this, the insurer charges a certain amount, the return of which is possible under certain circumstances. Never forget that the insurer is a commercial organization protecting its interests. The policy for which you will pay your hard-earned money must contain clearly defined responsibilities of the parties and a detailed list of situations that are insured events. The insurance company wants to make money from you, not spend money. In order to get a home loan, people have to agree to the terms and conditions of insurers.

   But this does not negate your legal right to hire your own lawyer and add a few additional clauses to the policy.

   Repayment of mortgage insurance can be made either in a lump sum or annually in an amount depending on the amount of the principal debt. If the validity of the insurance contract is limited to one year and it needs to be concluded again or extended, you can always choose another insurer in the new year.

   
   There are two types of insurance contracts: individual and collective.

   In the first case, the contract is concluded between you and the insurance company. The policy is kept with you, and if you decide to return part of the insurance or even all of it, it will be quite possible to do so. With a collective insurance agreement, things are much more complicated. It is concluded between three parties: the client, the bank and the insurer. You do not receive the policy itself, but the insurance conditions are stated in a document to which public access is provided (on the website, in the insurer’s office).

   According to the standard, the possibility of returning the amount paid for insurance at the request of the insured client is not provided for in collective insurance contracts.

   Even if the insured event never occurred and you paid off your mortgage early, you will not be able to get anything from the insurance company.

   Refund of money under an insurance contract

   Conventionally, all cases when a client wants to return money for insurance on a home loan can be divided into situations where a person decided to change the insurer (because a mortgage is impossible without paying for risks at all), and returns due to early repayment of the loan.

   For those who thoughtlessly signed an insurance contract and then wanted to change everything, there is a cooling-off period, which we have already mentioned.

   Within 5 days from the date of signing the policy, you have the right to fully return the amount paid.

   To do this, you need to fill out the appropriate application and submit it to the bank, and receive documentary evidence of the transfer of this document. The application can be sent by mail with notification.

   Here are a few points enshrined in law that every owner of a mortgage insurance policy should know:

   • from the moment of signing the contract you have a month to return the insurance amount minus the cost of insurance for the past days;
   • within 1 to 3 months from the date of signing the contract, you can return about half of its cost;
   • If you repay the loan early, you can return the cost of the policy for the remaining period.

   All this is true if the insured event never occurred. To obtain a refund for mortgage insurance, you will need to remove the encumbrance from the collateral property. For those who have chosen to repay the loan early, this should not be a problem. After receiving the last payment, the bank is obliged to remove the encumbrance from the collateral, since you have fully fulfilled your obligations.

   If your insurance contract provides for a refund and the insured event did not occur, and the insurance company refuses to return the money, you will find a step-by-step action plan for going to court useful:

   • write a standard application in two copies and deliver it to the office of the insurer;
   • If you are rejected, get written confirmation. If the amount is less than you expected, ask for a detailed estimate;
   • drawing up and submitting a claim to the insurer in accordance with the Civil Code of the Russian Federation;
   • filing a lawsuit

   Judges in most cases decide such cases in favor of the plaintiff, who wants to return the unused portion of the insurance premium.

   We are looking for optimal ways to solve the problem
   

   
   Any step related to a planned or existing mortgage must be balanced and deliberate.

   Banks and insurance companies use the services of qualified lawyers who draw up an agreement in such a way that the creditor wins in any situation.

   Therefore, in order not to waste extra time, nerves and money when returning money for insurance, use the services of professionals. The Mortgage Agency has been operating in St. Petersburg for a long time, whose employees successfully and promptly resolve these and other issues related to housing lending. Extensive connections in banking circles, extensive practice, impeccable reputation and an individual approach with work for results - these are the main aspects of the work of “Mortgage”. In addition, when applying, you will not be required to pay in advance - money for services at Mortgage is usually paid after completing the task.

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