"Protect yourself and your loved ones from unforeseen life situations by applying for insurance coverage in our bank on attractive terms!" - this quote, which, unfortunately, has been heard more than once by all clients who have at least once applied to banks and commercial companies in order to obtain a consumer loan. Let's see if it is legal to impose insurance services.
In addition to the classic "script", which the employee pronounces obtrusively and with a smile, many banks by hook or by crook try to "slip" a mysterious document in small handwriting "for a mandatory signature!" Inattentive or careless borrowers, without looking, often create problems for themselves in the form of additional overpayment, voluntarily putting their signature under the insurance protection column.
How to protect yourself from the arbitrariness of financial giants and avoid imposing those services that are not needed? Firstly, do not forget that, no matter what the sales managers say, loan insurance is a purely voluntary desire of the client, and more than one specialist has no right to force it to issue. Many employees may be cunning, claiming that, they say, “we don’t issue loans without insurance!”, But this is not true.
Secondly, insurance and credit are two different icebergs in a sea of financial intrigue, and they can collide with the ship in the person of the client, but only if he wants to. In other words, banks do not have the right to impose insurance - they can only ask to arrange it, since this is a direct profit of a subsidiary or a friendly company that “lives” by issuing insurance policies. And if the borrower, who initially did not intend to issue a loan without insurance, nevertheless decided to do it after the manager's persuasion, then this only speaks of the professionalism of the seller who knows how to convince the client.
Banks do not have the right to make them insure, but, however, such protection would be very useful for many clients - for example, if the father of the family, who is the only breadwinner, decides to get large amounts of borrowed funds for a long time. In this case, it would be more logical to protect relatives and friends from the need to pay off the loan and interest on it in the event of his death or incapacity. And if, after registering insurance in some banks, you can refuse it by bringing a package of documents in the near future after the loan is issued, then it will be impossible to get insurance after submitting the application. That is, an uninsured borrower, in the event of his premature loss of solvency, introduces his family into debt, since the bank will impose all obligations on payments on the next of kin.
