When applying for a loan, banks often require borrowers to insure property, transport, and their own lives. But in what cases are banks ready to return such insurance?
Credit insurance is a service designed to insure against risks that may arise in the process of debt repayment and affect the ability of the borrower to pay regular installments. Insured events are situations when either the financial situation or the health of the borrower changes for the worse due to sudden illnesses, accidents, natural disasters, etc.
Loan insurance is offered to the borrower at the stage of registration, however, even if the service is initiated by the bank, the contract is concluded with the insurance company, where the client is issued a policy for the period specified for the repayment of the loan. Insurance premiums are paid either in conjunction with regular loan payments or in a lump sum.
Depending on the type of loan, the subject of insurance also changes:
- when a mortgage is issued, the borrower is offered to insure not only the object of the pledge, but also his own life;
- when a car loan is issued, the bank offers to insure the vehicle purchased with borrowed money;
- when a loan is issued secured by securities, those risks are insured as a result of which the value of financial securities may change.
The cost of insurance services is also estimated differently, depending on the object of insurance. But usually the price of insurance varies within 10-35% of the total loan amount.
Under what conditions does the bank return the insurance after the loan is repaid?
Borrowers in these cases reason something like this: if the calculation of the insurance premium is tied to the loan repayment period, then with a decrease in the term, the insurance premium should also decrease, which means that with early repayment of the debt, the bank will have to return part of the insurance.
In fact, the situation looks somewhat different. The conditions, indeed, include early repayment of the loan, but the main thing here is that the very possibility of repayment is specified in the insurance contract.
If there is no clause on the return of the insurance premium in the contract, then, according to Art. 958 of the Civil Code of the Russian Federation, the insurance company has the right to draw up a reasoned refusal to the client's claims to pay the remaining part of the insurance. In addition, this article mentions that the policyholder is deprived of the right to return the insurance premium if, at his own request, withdraws from the contract.
Of course, in the event that the borrower makes insurance payments together with regular loan payments, he may stop paying insurance when he repays the debt ahead of schedule. His right. But before doing this, you need to carefully study the insurance contract in order to avoid possible additional charges or other kinds of sanctions from the insurance company.
What should you pay attention to in an insurance contract?
The most important points are:
- validity period of the document;
- calculation of insurance premium;
- the procedure for the payment of the amounts of compensation;
- the procedure for paying the insurance premium;
- conditions for the occurrence of the insured event;
- availability of a condition for the return of insurance in case of early repayment of the debt.
The last point gives a 100% money-back guarantee, it is a legal basis, which neither the bank nor the insurance company can bypass. If this item is not there, then there is no point in trying to return the insurance either - even the court in such a case will make a decision negative for the borrower.
What documents are required to return insurance?
If there is a corresponding clause on the return in the insurance contract, then before going to the insurance company, you need to collect the following package of documents:
- insurance policy;
- loan agreement;
- passport;
- payment papers that confirm full payment of the loan;
- checks confirming payment of the insurance premium in full.
If the insurance company still does not return the money, the client will need to demand a written refusal, and with it go to the court or Rospotrebnadzor. It is important to remember that all costs incurred during the trial are covered by the plaintiff. And the client needs to consider whether the return of insurance is worth such costs.
If there were collateral items (a car or an apartment) when applying for a loan, then when the insurance is returned, you can change the beneficiary - this is a fairly effective measure. The fact is that initially the bank was indicated as the beneficiary in the contract, but, according to Art. 956 of the Civil Code of the Russian Federation, the insured can independently change it to himself or a relative.
And in order to make such a replacement, you will need to send a notification to the insurance company: written or telegram.
What if the bank refuses to return the insurance?
If, despite a written statement from the borrower, the bank refuses to recalculate the paid insurance premium, you need to make sure that such a return is specified in the contract, and then contact the insurance company.
If the borrower was ignored by the insurers, it is necessary to submit an application to Rospotrebnadzor, which will check the actions of the insurance company - do they violate regulations?
If this does not help, the client will only have to go to court and file a claim against the insurance company. But before that, it is advisable to consult with a competent lawyer.
