What does credit insurance mean? Do I need to take out life insurance with a loan? What types of insurance are refundable

Recently, most consumers perceive insurance as an imposed service. However, banks everywhere continue to promote both their own insurance products and those owned by partners. Of course, now the schemes have changed significantly. They are usually used in relation to legally weak borrowers who consider an insurance contract necessary and are forced to make a choice - to take what they give, or to leave without money at all. Every borrower should know how to apply for a waiver of insurance.

However, there is another important factor that makes people agree to insurance. The fact is that bank loan conditions are often formed in such a way that products with the inclusion of insurance seem more favorable to the client in terms of interest rate, loan duration and amount. The borrower thinks he made the right decision, but in reality the total amount of bank money, together with interest and insurance, turns out to be larger than that of debt with higher interest, but without insurance, which is a typical marketing ploy that works very effectively. We have to find out whether it is possible to cancel insurance after receiving a loan, and if so, how.

insurance law

More recently, when applying for a loan and signing an application for insurance, a person could hardly back out. Further appeals to the bank and the relevant companies were rejected with a categorical refusal: since the application was signed by the borrower himself, his action was deliberate and voluntary. Such a problem was solved through the court, but only if a person could prove the fact of imposing a service.

Only a small number of financial institutions, as an exception, made it possible to issue a waiver of bank insurance and return money for it within a few days.

On June 1, 2016, the Bank of Russia, which also regulates the insurance market, made an announcement that citizens who bought a policy can return it and collect the money paid. For this, a so-called cooling period (five days) was introduced. During this period, the client could change his mind and contact the insurer, who is obliged to return the money to him. The legal return of insurance is carried out very quickly, the money is transferred to the applicant within ten days.

In addition to refusing insurance, the new law allows customers to disagree with all sorts of additional services that are imposed by the relevant organizations. However, in this case, the risk of a financial institution increases significantly. That is why banks increase interest rates or reserve the right to change them if the client refuses. And this way is prescribed in the loan agreement. This often stops borrowers from taking action. If the client does not agree to take out insurance, banks are reluctant to return the money to him. However, this is still realistic, even if the whole process will be accompanied by a long debate with the financial institution.

A sample loan insurance waiver is presented in the article.

What types of insurance are refundable?

In the field of lending, there are both voluntary and compulsory types of insurance services, which include policies such as:

• Real estate insurance, relevant for real estate loans, mortgages, where the collateral must be protected.
• CASCO, when, when taking a car loan, the bank obliges the client to insure the purchased car - transport as collateral gives the bank financial protection. So how do you apply for a waiver of insurance after receiving a loan? More on this later.

All other types of services accompanying the conclusion of a loan agreement are voluntary.

Insurance can be refunded for cash, commodity loans, credit cards, etc., which are accompanied by:

• customer life insurance;
• title insurance;
• a policy in case of layoffs at work;
• financial risk protection;
• borrower's property insurance.

Insurance is legal in any case, as it is an additional service offered to the client when concluding a loan agreement. If it is not included in the list of mandatory, the borrower can legally refuse it. True, such a choice will lead to a negative decision in issuing money. When a bank offers insurance, the law is not violated in any way.

Can I opt out of insurance?

Cancellation of insurance can be done, but it is not easy to do. For their right to this action, some borrowers even sue creditors, but this option is not suitable for everyone, and the probability of losing is not canceled, since bank employees can easily turn the situation in their favor. At the same time, the client can find out from his lender whether it is possible to write an application for waiver of loan insurance a few months after the execution of the contract and timely payments. But such a procedure can be carried out only when a simple consumer loan is taken.

Subtleties in the law of the cooling period

The recently released law does not affect collective agreements. It is valid only in case of conclusion of an agreement between an individual and an insurance company. That is why banks often sell additional services as part of a collective agreement (in fact, the bank acts as an insured), and the return of insurance during the cooling period becomes impossible.

Available ways to cancel insurance

Many people think that insurance is a mandatory procedure when taking a loan. However, Russian legislation approves the voluntary nature of the insurance contract. The catch is that a financial institution can refuse a loan even without giving a reason.

Most often, clients are given this alternative:

• Program with a low interest rate and compulsory insurance.
• Higher interest and no insurance.

Many are afraid that option #2 is unprofitable. And therefore they themselves agree to additional services they do not need. But it often happens that increased interest is cheaper than insurance policy payments, which can be up to 30% of the total amount.

If the client chose the first path, he has the right to receive a loan, and then legally issue a waiver of insurance (sample application below). When the application is approved by the bank and the contract is signed, the borrower may consider the payment for additional services unjustified and cancel.

Ways

There are two ways to cancel an insurance policy:

• by contacting the bank with a written request;
• through the court.

Also, a refusal can be issued if the loan was paid regularly within six months. To do this, you need to perform the following steps:

• Contact the credit department of the bank.
• Prepare a written request to terminate the insurance contract.
• Wait for the bank's response.

In many cases, financial institutions respond positively to such requests from customers, if there are no delays in payments for the entire time and there are no insured events. Then the bank recalculates interest rates and increases them to compensate for the risks.

A financial institution can only make a recalculation if this is provided for in the contract. Otherwise, the client's request will be denied.

Documents for going to court

If the bank did not meet the borrower, it is possible to refuse credit insurance through the court. In order to file a claim, the following documents are required:

• credit agreement;
• insurance policy;
• Bank refusal in writing.

It is imperative to provide evidence of the imposition of insurance services, so it is better if all conversations with bank employees are recorded on a voice recorder. To increase your chances of winning, it is advisable to enlist the support of a professional lawyer if the client is not competent enough in legal intricacies.

The chances of winning the court are quite high: you only need to prove that the insurance policy was fraudulently imposed by the bank (for example, by including it in the monthly premium without warning). If the program with low interest and insurance was chosen voluntarily, it will be much more difficult to refuse.

Features of the return of funds deposited under insurance

The new legislation provides that the refusal of insurance on a loan during the cooling period guarantees the return by the bank of the funds spent on the purchase of an insurance policy within ten days.

It is also possible to satisfy the client's request in the absence of an insurance case during the cooling period. Since the policy does not always take effect immediately after the signing of the contract, the amount of the returned funds may be full or partial. If the insurance contract has not yet entered into force, the premium amount is returned in full. Otherwise, the amount for the elapsed time is deducted from the funds, and the company has every right to do so, since the service was provided.

Features of the return of insurance after a cooling period with an outstanding loan

If the cooling period has already passed, the service is not subject to the new law. There is no need to rush to file a lawsuit to waive insurance (many people download a sample application on the Internet). It's best to try contacting your bank. Many organizations are now very loyal to customers and give them the opportunity to refuse additional services even later than five days. This is how banks VTB 24 (under agreements that are executed before February 1, 2017), Home Credit, Sberbank (30 days) operate.

If you send a claim to the organization, it will almost completely be refused, justified by the fact that the client himself signed the application. In this case, the borrower, confident in his rightness, can only go to court, and it is better to do this through lawyers who can suggest some loopholes. However, in reality, it is very difficult to return the money, because the person himself agreed to the service and even paid for it.

Early repayment and return of insurance

Is it possible to return the insurance if the loan is repaid ahead of schedule? Since the policy is issued for the period of repayment of the loan, the person who repaid it in full ahead of schedule is entitled to receive part of the payment for insurance services. If the loan was taken for two years, and 60,000 rubles were paid for insurance, then if it is paid out in a year, 30,000 rubles are supposed to be returned. In general, this issue should be addressed to the bank.

An application for a refund is made either when an application for early repayment is written, or immediately after the loan is closed. To resolve this issue, the bank can refer the client directly to the insurance company. In the same place, he can request a sample application for refusal of insurance.

Do it yourself or contact a lawyer?

If you return the insurance within the five days prescribed by law, you will not need the help of a lawyer. But after this period, the process will become difficult and in some cases impossible. If the bank refuses, it is still worth seeking qualified legal assistance, as the specialist will be more competent in this matter.

To avoid such delays and unplanned expenses for covert insurance, you need to carefully study each clause of the loan agreement, as some banks may take on the deduction of insurance premiums. Therefore, it is worth spending time studying the contract in order to avoid financial problems and litigation.

Then a sample loan insurance waiver application will not be needed.

Credit insurance is a measure to protect the bank from non-repayment of funds by the borrower. The insurance company reimburses loan payments if the insured person is unable to bear financial responsibility due to the occurrence of an insured event.

80% of Russian banks are interested in the fact that when applying for large consumer loans, mortgages and car loans, customers take out insurance.

Statistics for 2016 showed that 61.5% of borrowers have life insurance, 19.3% have accident insurance, 5.9% have property insurance, 5.6% of policies are car loans, and 7.7% are other types of insurance .

What does bank loan insurance provide?

Reduces the risk of loan default. By issuing a policy, a citizen protects himself from various force majeure. Among them:

Job loss;
Loss of health;
Damage to property and decrease in its cost.

In the event of an insured event, the company undertakes to compensate for the damage - in part or in full.

What does insurance give when obtaining a loan to a borrower?

Does it guarantee loan repayment in case of force majeure?
Reduces the rate;
Increases the size of the loan and the term of the loan.

If, when receiving a loan, the borrower takes out life or disability insurance, then in case of loss of work or health, he may not worry about repaying the loan. The insurance company will cover the debt. The main thing is to submit an application and prove the fact of the occurrence of an insured event.

About 60% of Russian banks, when calculating the amount of overpayment, take into account:

Loan amount;

client status;

Availability of insurance.

The rate automatically increases by 2-5 points if the borrower refuses insurance. Upon receipt of the policy, the rate is reduced by 2-3 points.

In 40% of cases, life insurance for loans is an additional condition. To issue life insurance or not - the borrower decides for himself. However, without it, it is impossible to get a loan for a large amount.

Consent to insurance also increases the loan term. A prime example is mortgages. This is a risky type of loan, as it is issued for a large amount and for a long time. If the borrower takes out life insurance, the bank offers the maximum term for using the loan - up to 30-50 years.

Types of insurance

An insurance policy for lending is issued:

For the life and health of the borrower;

For property.

Features of life and health insurance

Life and health insurance is a voluntary decision of the applicant. Banks do not force you to issue a policy, but they do their best to facilitate this. How? Limit the terms of loans.

Life and health insurance allows you to avoid problems with the payment of a loan in the event of an insured event. If the borrower becomes unable to work due to an accident or illness, the company will take over the loan obligations.

Taking out life and health insurance is a time-consuming process. The insurance company will require a certificate from the client from the place of work, about the state of health and hobbies.

If the profession or hobby of a citizen is associated with risks, and the health certificate contains marks of serious illnesses, then insurance will be denied. Insurers do not provide social assistance to persons at risk.

Features of property insurance

The bank requires property insurance when issuing a mortgage or secured loan. Insurance protects real estate and vehicles from loss of liquidity. If the property is damaged, the company undertakes to compensate for it.

How to get insurance in the event of an insured event?

Theoretically, the execution of an insurance policy is beneficial for both banks and borrowers, the procedure for obtaining a policy is simple and understandable. In practice, things are somewhat different.

In 60% of cases, insurance companies refuse to fulfill their obligations. To receive payment for damages, borrowers resort to the help of lawyers, banks and even courts.

In order to avoid problems with the payment of funds in the event of an insured event, you need to:

Contact the insurance company with an application and documents that confirm the occurrence of an insured event;

Notify the bank to prevent problems arising from delays.

If the insurer refuses to pay, a lawyer and a bank can be involved in the proceedings. In 90% of cases, banks contribute to the return of insurance funds, as they are interested in repaying the loan.

In extreme cases, you can resort to the court. 80% of cases against insurance companies are resolved in favor of borrowers.

3 rules of competent registration of insurance:

Contact reliable companies;

Check the correctness of the contract of life and health insurance of the borrower with a loan;

Insist on a refund clause for insurance if it has not been used.

An integrated approach to obtaining an insurance policy will save you from misunderstandings and protect you from problems associated with paying a loan.

Quite often, the main condition for concluding a loan agreement with a bank is the purchase of an insurance product along with the loan. This can be life and health insurance for a person entering into a loan agreement, insurance against job loss or property insurance for mortgage lending and car loans. The insurance procedure for the period of full repayment of the loan is necessary and beneficial for banks. In this way, they reduce their risks from non-payment of funds by borrowers.

Payment procedure: options for the development of events

In case of voluntary consent of the client for the period of loan repayment, the beneficiary in the event of an insured event is the creditor bank. In any case, the client is not obliged to take out insurance from the insurer specified by the bank. The client is entitled.

Other insurance products, for example, housing with, - when obtaining a car loan, are mandatory (Article No. 343 of the Civil Code) and may even be beneficial to the borrower. If suddenly there is a destruction (full or partial) of a building taken on a mortgage, or a car bought on credit, then insurance will fully cover the debt to the bank.

According to the current legislation of the Russian Federation, a bank client is not required to insure his life and health! This is a purely voluntary action. This right is fixed in article No. 935 of the Civil Code of the Russian Federation.

When drawing up a loan agreement, an insurance agreement is also concluded.
There are two options:

• the client is forced (under the threat of refusal to lend) buy any insurance product.
• the client purchases the policy voluntarily and knowingly. But in any case, if the client wants after some time, then he can submit a corresponding written application to the bank (or insurance company).

In a written application (pre-trial claim), a desire to terminate the insurance contract and a claim for the return of the insurance premium must be expressed. The claim must be made in the amount of 2 copies and one handed over to the bank (or insurance company) against signature on the client's copy. If the branch of the creditor bank (or insurance company) is located in another locality, then the claim must be sent by Russian Post by registered or valuable mail with a description of the attachment and a return receipt.

There are 2 types of consumer loans:

• loan without collateral
• loan secured by property.

A loan secured by property is most often concluded with this property. It can be real estate, a car, jewelry, etc. This measure is fully justified and is spelled out in the loan agreement. Banks try to “burden” consumer loans without collateral with other types of insurance: health and life, against job loss, etc. The client can refuse these types of insurance, or he can use them.

By law, the borrower can refuse an already concluded insurance contract. If this decision is made no later than a month after the signing of the contract, then the amount paid under this contract must be returned to him in 100% of the amount. If the decision is made later than this period, then the return will be made in accordance with the conditions specified in the insurance contract.

Return on early repayment of the loan

If the loan is repaid ahead of schedule, and the expiration date of the insurance contract has not yet arrived, the client must submit and return the balance of funds. An application should be submitted to the bank if the insurance was included in a set of lending services, or directly to the insurance company - in other cases. The insurer, having considered the application, must make a calculation: from the total amount paid earlier, deduct the funds attributable to the time of the payment, for servicing the insurance contract. The insurer must pay the rest of the money to the client.

For more information on the early termination of the insurance contract, see Article No. 958 of the Civil Code of the Russian Federation. Here, in addition to the borrower's right to early termination of the contract, the insurer's right not to return the rest of the sum insured is also spelled out. In this case, only the help of an experienced lawyer can help solve the problem in favor of the client. The specialist can refer to the standard wording in all loan agreements that the insurance agreement covers the entire term of the loan repayment. In case of early repayment of the loan, the term of the loan agreement also ends. Accordingly, the deadline must also end.

Documents that must be provided to the insurer for the payment of the balance of funds in case of early repayment of the loan:

• passport;
• a copy of the loan agreement;
• a certificate from the bank on the full repayment of the loan;
• notice of termination of the contract and payment of due funds.

An alternative option for early repayment of the loan is to change the beneficiary of the insurance, i.e. re-register documents for yourself or relatives. In this case, the insurance contract continues until the end of the previously planned period.

It happens that an insurance contract concluded to obtain a bank loan, and then repaid ahead of schedule, does not provide for a one-time payment of the insurance amount, but periodically (for example, monthly). In this case, as an option, you can consider the deliberate non-payment of monthly insurance premiums. In this case, the insurer will terminate the contract automatically. But before you decide to take such a step, you must carefully re-read the insurance contract. After all, it may include fines and penalties for late or non-payment of contributions. Therefore, the best option is to apply for an insurance company. From the day following the day of application submission, monthly fees may not be paid legally.

If the client wants to make a refund of the paid sums insured, regardless of the type of loan and, you should contact a lawyer for advice on a specific situation. He will evaluate all possible risks and potential benefits from the planned activities. And only then it is possible to deal with the pre-trial settlement of the disputed issue, and in the absence of a result, the trial by the method of judicial proceedings.

Termination of an insurance contract for a loan, video consultation of a specialist

Many borrowers are sure that the insurance that the bank issues when issuing a loan is a waste of money. But how can one say with certainty that nothing will happen to a person during the period of lending? The bank just wants to reduce risks, and this desire is quite understandable. In the article, we will figure out what insurance provides for a loan to the bank and the borrower himself, and whether it is necessary to refuse it.

About insurance

Insurance is required by the borrower in the event of an insured event.

The product offered by the insurance company to the borrower becomes necessary when an insured event occurs. The company will undertake to help the borrower repay the loan. The following situations are understood as an insured event:

1. Loss of ability to work (permanent or temporary) due to poor health.
2. The emergence of risks to the life of the client, death.
3. Job loss.
4. Deprivation of the right to property.
5. Natural disasters, natural disasters.

There are insurance:

1. Efficiency and workplace. With the loss of a permanent source of income, the company helps to cover the costs of paying the loan.
2. Possible non-payment. The insurance company covers the debt to the bank, and then claims it from the client.
3. Collateral insurance. If there is trouble with the apartment or car, the company will compensate for the damage.

The amount of insurance is approximately 30% of the value of the "body" of the loan. It is divided into equal parts and is included in the monthly payment. For example, if the loan amount is 10,000, in this case the insurance is 3,000. The total amount is 13,000. If we divide it by 12 months, we get 1083 rubles a monthly payment. The overpayment will be approximately 300 rubles per month. And if you take into account a large amount?

Appointment of insurance

On the one hand, this is a very advantageous offer for the client - you can protect yourself from unforeseen situations. But on the other hand, you will have to pay more for the loan than planned. And it is this fact that makes borrowers refuse to sign an insurance contract.

For the bank, the benefit is obvious - it seeks to protect itself as much as possible. In this case, all possible risks are prescribed in the text of the loan agreement. Before signing, you should carefully study all documents. The contract usually discusses insurance:

1. an unsecured loan (the insurer is a bank);
2. the borrower's liability for an unclosed loan (a contract is concluded between the client and the insurance company).

Both types insure the borrower's liability for the timely and full repayment of the loan. If the client fails to repay the loan, the insurer reimburses the bank from 50% to 90% of the outstanding debt, together with interest.

What does insurance give

First, it is necessary to clarify that it is necessary to conclude a normal insurance contract. If the client signs a standard contract just to calm his conscience, he will thus give the insurance company a chance to avoid paying the loan. For example, there are some illnesses that do not apply to an insured event. If the client dies as a result of such a disease, the insurer will not assume the obligation to repay the loan.

What exactly does a person wishing to take out a loan insure himself against, and what does credit insurance provide?

1. When insuring property, this is a case of damage to which the borrower is not related. For example, if there was a fire in the apartment. In the event that the borrower is to blame for the fire, the insurance will not be paid. But if neighbors or strangers are guilty, this case is a real insurance case.
2. When insuring life and health, the main thing is to tell as much as possible about yourself. List all existing diseases, occupational risks, hobbies (especially if they include extreme sports). In this case, the insurance company will not have a chance to avoid obligations.

However, it must be remembered that in the event of an insured event, the company will find out all the circumstances of the incident. And if it turns out that the cause of harm to health was a hobby that the borrower did not mention, the insurer will not make payments on the loan.

The question arises, why hide such facts. The answer is clear - the more risks the insurer has, the higher the amount of insurance will be. And no one wants to pay.

Legality of cancellation of insurance

All types of loans are subject to insurance, including consumer loans for a small amount. This is the option when the solvency and working capacity of the borrower is insured. According to the legislation of the Russian Federation, a citizen may refuse such insurance, because. not required to insure their health and life.

However, it is no longer possible to refuse insurance for a pledge. The law provides for mandatory property insurance at the expense of the owner in full value, taking into account all damages.

But in fact, it is very problematic to refuse insurance. The bank will either raise the rate, or even refuse to issue a loan.

Loans provide an opportunity for each company or individual to receive funds for various purposes. When applying for a small loan amount, banks or microfinance organizations usually do not require collateral, the presence of guarantors or the need to draw up an insurance policy. However, when obtaining a car loan or mortgage, as well as impressive or business development funds, credit insurance is usually a prerequisite for cooperation with a bank.

When people usually plan a certain purchase, and this indicates that there is no money in the family budget for the goals set. Therefore, various additional payments or commissions are considered a burden on the borrower. As a result, when bank employees begin to insist on buying a policy, natural questions arise in this situation, what is credit insurance, is it possible to refuse it and why is it purchased.

The costs associated with buying a policy are quite high. The life and health of the borrower, as well as purchased expensive property, such as an apartment or a car, can be insured.

Credit insurance is a service of various insurance companies. It is with such an organization that an appropriate agreement is signed, on the basis of which contributions are paid by the insured person, so he receives a policy in his hands. Through this procedure, the insurance company guarantees that in the event of any unforeseen circumstances in which the borrower can no longer repay the loan, it provides assistance in paying off the borrowed funds.

The following conditions are most often covered by the insurance policy:

• deterioration of health, in connection with which it is impossible to continue to carry out work activities at the same level;
• the life of a citizen;
• loss or constructive destruction of the purchased goods for reasons beyond the control of the client;
• dismissal or reduction at the main place of earnings;
• material loss or damage to the body as a result of numerous emergencies, which include fire or flood.

Credit insurance is considered important not only for the bank itself, but also for each borrower, since it is impossible to predict what a person can expect in the future, so refusing to complete this procedure is considered inappropriate. This is especially true for long-term mortgages.

Consumer credit insurance, like other types of loans, is not mandatory, so banks do not have the right to require borrowers to purchase a policy, but often such a condition is required to obtain approval. Otherwise, the bank simply will not issue a loan.

Cons of buying insurance

For most borrowers, it is important that such an acquisition has numerous disadvantages:

• if you take out insurance directly at the bank where the borrowed funds are taken, then it is included in monthly payments, so they increase, which leads to a more serious credit burden on the borrower;
• if the policy is bought from a third-party insurance company, you will have to pay for its renewal annually, which leads to an increase in the cost of maintaining a loan;
• insurance upon receipt of a loan is paid not for one year, but for the entire period of payment of funds, evenly distributed over all monthly payments;
• if you refuse to purchase a policy already in the process of repaying the loan, the interest rate may increase, which is certainly indicated in the loan agreement.

Loan insurance is perceived negatively by many borrowers, although it is with the help of the policy that it is possible to repay the loan at the expense of the insurance company in the event that the borrower, for good reasons, cannot cope with this on his own.

How can I buy insurance

Consumer credit insurance, as well as other loans, can be implemented in the following ways:

• a policy is bought directly from the bank where the borrowed funds are issued, and in this case, the cost of insurance will usually be higher, but payments for it are distributed evenly over monthly payments, so the expenses will not be very noticeable;
• credit insurance in a specialized company accredited by a banking institution. Here it is important to immediately pay the full amount for the year, and the cost of the policy will be lower than in the bank.

Features of insurance of different types of loans

Lending with compulsory insurance is usually offered only for large and complex loans. Each loan has its own insurance policy. Borrowers are most indignant at the need to pay for insurance when applying for a small consumer loan. This loan usually does not differ in a large amount, and is also issued for a small amount of time, so why insurance is needed, some bank customers cannot understand.

The fact is that both the client and the bank need credit insurance, since both parties are equally interested in repaying the debt. Unfortunately, no one is immune from the onset of unforeseen circumstances that can occur at any time, even in the short period for which a small consumer loan is taken. Insurance is a kind of safety cushion, thanks to which a client who finds himself in a difficult life situation will not have to think about repaying the debt to the bank: the insurer will take care of this, removing the burden of payments from the client.

In the process of applying for a loan, every citizen has the right to refuse to purchase a policy that is purchased to insure their own life and health. However, he cannot refuse insurance on property provided by him as collateral. The pledge is certainly insured by the citizen at his expense, and it protects the policy from damage or loss of property.

Is it possible to cancel insurance?

Knowing what insurance gives, many borrowers still try to find an opportunity to refuse to purchase it. If you simply refuse to purchase insurance during the process of drawing up a loan agreement, the bank may refuse to issue borrowed funds without explaining the reason. Other lending options may be offered that are not as beneficial to the borrower. And also often in case of refusal of insurance, banks set a high interest rate on the loan.

If you take out a loan for several years with the purchase of a policy for one year, and do not purchase it next year, then banks can usually increase the interest rate on borrowed funds for such a decision. This condition must be specified in the loan agreement. Often the percentage rises so high that insurance is considered more profitable.

One of the reasons for refusing the policy is considered to be the situation when the bank violates any clauses of the contract after the issuance of credit funds. For example, without notifying the client increases the interest rate. In this case, the refusal of insurance is considered a reasonable decision of the borrower, which should not be challenged by the bank's employees. If the loan agreement itself does not indicate the consequences for the absence of a policy, then it can not be renewed, since the bank does not have the right to use any methods of influencing the client in such a situation.

In addition, life and health insurance cannot be issued to certain categories of borrowers, for example, those with disabilities or serious chronic diseases. As a rule, a complete list of all conditions under which insurance is prohibited is indicated in the annexes to the main insurance contract.

How to cancel insurance with the help of the court

Security in the form of a policy can be challenged in court. This decision is usually made by borrowers who are already making loan payments but who do not want to spend a lot of money on insurance every year. The bank will insist that the borrower buy the policy, so problems will begin in relations with employees of the credit institution. Often this leads to the need to resolve issues in court.

To apply to the court, it is necessary to prepare a package of documents, among which a claim is especially carefully drawn up and a request to return the money paid earlier for insurance.

How to return insurance in case of early repayment of a loan

Many borrowers often repay loans in advance, so they think about whether it is possible to return the insurance. Citizens do not have to pay for those periods when there is no longer a formalized loan. The fact is that often in the process of obtaining a loan, insurance is paid for the entire term of the loan. Often the cost exceeds even 20% of the loan amount, so the amount is considered really significant.

If the debt was repaid in advance, then some amount paid for the purchase of insurance will certainly be reimbursed. Often, the insurance company refuses to issue these funds to the insured person. If this condition is not spelled out in the insurance contract, you will have to go to court, and it is advisable to use the services of a lawyer. It is necessary to choose a specialist in resolving various conflict situations that arise in the process of credit insurance.

To return part of the money for the policy, you must contact the insurance company with a special application, which indicates the rationale for the return of money. In accordance with this document, this organization is obliged to return the funds. To do this, after obtaining consent from the employees of the insurance company, you will have to terminate the contract. After that, recalculation is carried out, and the balance of funds is issued to the client.

How are insurance funds refunded?

This procedure can be carried out both through the insurance company and through the bank in which the loan was issued. To do this, an application is written in which it is necessary to ask for the recalculation and return of part of the cost of insurance.

This application is sent both by mail, for which a registered letter with notification is used, and by personal delivery to an insurance company or bank branch.

If even in this case it is not possible to return the money, then you will have to file a complaint with Rospotrebnadzor, and at the same time you need to file an application with the court. However, the costs of the court in case of loss will have to be covered independently, so it is important to determine the appropriateness of this action.

Of course, it often happens that banks impose insurance on borrowers, but without it, there is a high probability of being denied a loan. When pledging property, the purchase of a policy is mandatory, and in other situations, borrowers may refuse to purchase it. In case of early repayment of the loan, you can return a certain part of the funds paid for insurance.