Credit organizations that seek to get the most out of risk often require the client to receive a life insurance policy.
Buyers have the right not to conclude an agreement on unfavorable conditions for them. Moreover, they are not required to sign an agreement on the provision of any insurance services. You just need to inform the manager that this option is not of interest. And you need to do this even at the stage of paperwork, but after a positive decision from the bank is received.
How can I refuse a registered policy?
In the event that the agreement was nevertheless signed or the clause on the policy was included in the loan agreement by default, is it possible to return life insurance for a car loan? It should be noted that in no case should you delay the termination of such an agreement. The chances of getting your money back every day will be less.
You need to contact the insurers directly. To do this, they write an application for the return of life insurance for a car loan, collect the necessary papers and wait for an answer. If the company does not meet, then you can go to Rospotrebnadzor, RSA, the Central Bank or to the court.
It is important to note that if more than six months have passed since the conclusion of the agreement, then the insurers may refuse to satisfy the client’s claim, referring to the fact that the financial resources were spent on all kinds of administrative expenses.
With an insurance premium of more than fifty thousand rubles, you can request a report on how exactly the funds were spent. If the cost of the policy was included in the loan amount, you still have to contact the bank. After parting with insurers, it will be necessary to revise the terms of the agreement in terms of recalculating the loan amount and the size of monthly payments.
Procedure
How to return life insurance for a car loan? The procedure in this case will be as follows:
- Draw up a written claim to the insurance organization and to the bank. It must indicate the reasons why a person wishes to refuse this service.
- Within ten days after the submission of the corresponding complaint, the banking organization together with the insurer must give an answer. In practice, there are many cases in which lenders made concessions to their customers, offering to settle everything in peace.
- If they do not agree to concessions, then they will have to go to court with a lawsuit. You should not hope for a very quick and at the same time positive outcome, since any large company has its own legal department that deals with such issues.
During consideration by the court all circumstances of the case will be established. In the event that the bank actually exceeded its authority and forced the client to conclude an unnecessary agreement at an overestimated rate (insurance was included in the loan amount), a decision may be made regarding the return of life insurance on a car loan. True, this is not always the case, since it is usually difficult to prove that a person did not know about unfavorable conditions for himself. Typically, all items are prescribed in documents under which borrowers put their signature, often without reading them. Only then they learn that a fairly large amount is added to the cost of the car, which will also be charged interest.
Thus, repaying funds for life insurance on car loans can be quite problematic, and borrowers will have a lengthy lawsuit. Even if such a thing gives a positive outcome, further problems may still arise. For example, banks may increase the interest rate on the loan for the remaining period, if such an item was provided in the contract. As a result, borrowers will have to pay more, and the benefits of the process will not be so significant. When the increase in insurance is not provided unilaterally, then the credit institution may terminate the contract.
Amount calculation
It is worth paying attention to the fact that customers have only five calendar days from the date of signing the agreement to return life insurance for a car loan. It was such a term that was legalized in June 2016, and borrowers who do not want to use certain imposed services should fit into it. If a citizen succeeds during this period, then the insurer is obliged to return the paid sum to him, and quickly enough, namely within ten working days. Basically, this money is transferred to a loan.
But what can be done if this deadline has already passed? Then you need to carefully read the terms of your contract with the insurance company, see how it is terminated and find out whether the payment can be returned.
Most often, this is possible only with the condition of early settlements by the buyer with a credit institution. To return life insurance for early repayment of a car loan, you must provide a certificate of lack of debt. They take her at the bank. After receiving it, the client also contacts the insurer or the financial institution in order to receive part of their money.
It is no coincidence that the phrase “part of the money” is mentioned, since the return of life insurance for a car loan in full is possible only when applying no later than two days after signing the documentation. After that, they will consider that the service was provided to the client, which means that they can return to him much less, that is, the amount minus certain costs. About how to return life insurance for a car loan, we talked about. Next, we describe the required paper for this.
Required documents
So, as already noted, in case of missing deadlines, the return of life insurance for a car loan is allowed only if the loan is repaid ahead of schedule. At the same time, it’s worth trying to return at least some of your contribution. For this, they turn to an insurance company, and not to a banking organization. The bottom line is that you need to write an application, submit documents and wait for an answer.
Together with the application, the company should provide:
- Client's passport along with a copy of the car loan agreement.
- A policy with a certificate taken from the bank on the full repayment of existing debt.
- Receipt of payment of insurance premium.
- Details of the account where you want to return the funds.
Under the terms of the agreement, it may be prescribed that insurance is not returned in case of premature settlement with the bank, then the client, unfortunately, will not receive any money back.
How to return life insurance for a car loan at VTB?
In insurance practice, there is a concept of a cooling period during which customers can refuse the company’s services and return their funds if there was no corresponding event. This measure is considered very beneficial for borrowers. Now consider how to return life insurance for a car loan at VTB.
So, termination of contracts during the cooling periods is as follows. After receiving a loan, customers collect a specific set of documents. For example, a passport along with an insurance contract, receipt of payment of a premium, and if the amount is included in the cost of the loan, then a loan agreement with a repayment schedule. Among other things, you will need the details of the account where the funds will be returned.
In addition, you need to prepare an application for exclusion of the client from the number of participants in the voluntary insurance program. Its form is not established by law. The form can be taken from the appropriate organization or found on the Internet. The application must indicate the name of the applicant along with passport details, the name of the creditor, a link to the contract, as well as the insured risks. An application shall be accompanied by an inventory of all documents.
He is served in the company with which the contract was concluded. It must be written in duplicate, on one of which the employee of the organization puts the registration number and date. It is allowed to send this paper with notification by registered mail through the Russian Post. The terms of consideration are ten days from the date of registration. At the end of this period, funds must be transferred at the specified details. In the event that the financial transfer is delayed without explanation, the applicants have the right to file a demand for return to the judicial authority.
How does this procedure take place at UniCredit Bank CJSC?
The question regarding the return of life insurance for a car loan to UniCredit Bank and termination of the contract may arise at different stages: immediately after receiving a loan, in case of early repayment or after full payment according to the schedule:
- After paying the loan. In this case, you can return your funds to the financial institution in question only if you can prove that the policy was imposed. This is quite difficult to do. Therefore, it is better to enlist the support of a competent lawyer who is able to carefully study the provisions of the contract. He will certainly help the preparation of the statement, as well as during the judicial settlements of the issue.
- During registration and immediately after issuing a car loan. This is the most reasonable way to refuse a policy. Since June 2016, amendments to the insurance law came into force. One of them provides for the so-called cooling period. During this time, as you know, borrowers have every right to terminate the voluntary insurance contract concluded when applying for a loan.
- As part of prepayment. The repayment of life insurance upon repayment of a car loan ahead of schedule in UniCredit Bank is also possible. Borrowers have the right to early terminate the contract, citing the fact that after repayment of the loan they no longer need a policy. And since the size of the premium is determined taking into account the terms of the contract, an overpayment appears. Customers can rely on the return of an unused share of the funds that were paid for insurance.
LLC Rusfinance Bank
In this institution, to return life insurance when paying off a car loan, you will need the following documents:
- Submission of a disclaimer.
- Confirmation of the fact of payment of the premium (we are talking about a check, warrant, etc.).
- Copy of passport from client.
- Among other things, you may also need a loan agreement.
This documentation can be handed in person at the office or sent using a registered letter with a list. It is advisable to make a personal visit, as this will significantly help to accelerate the receipt of money by increasing the amount of return. According to the law, the policy ceases to be effective immediately upon delivery of the application to the insurer. Further, financial funds are credited to the account after no more than ten business days.
Consequences of failure
Car loan life insurance is returned to Rusfinance Bank by writing a refusal to provide the service. Such an action should not be for a citizen any penalties and consequences. But we must remember that the agreement on the program "life and health" can help a person in case of force majeure circumstances. In this case, with an active agreement, all obligations will be assumed by the insurance company.
Life Insurance Benefits
It is worth noting that this service is beneficial to customers. Moreover, it is fair to say for all three parties (customers, a bank, a company issuing a policy). What is the advantage?
For the company itself, it is about receiving bonus payments, the amount of which is calculated individually or depends on many different factors (objects / subjects of insurance, gender, age, lifestyle, work, etc.), or it is fixed and is formed by multiplying the contribution by certain odds (usually around two percent). In banks, as a rule, the second option is used.
For a financial institution, risk minimization with guaranteed return of funds due to the agreement is noted, and an increase in the size of the loan is observed (therefore, an increase in interest income). In addition, receiving a commission from the company is not excluded.
For a client in the event of an insurance situation and there is no opportunity to return money to the bank, the borrower will not become a debtor, since the insurance office will directly return the money for it. A solid financial compensation can not only repay the debt, but also provide material borrowers for a sufficiently long period.
Conclusion
Thus, many people fail to accumulate a decent amount for the purpose of buying a car, but buying a car on credit is quite common today. Banks currently provide various car loan programs. Moreover, to give a loan in the first place they put those who not only issued a policy for a car, but also their lives. In this regard, you must be careful. If such a service is not interesting, do not lose sight of it and, in the case of imposition, immediately refuse. If such insurance was issued, then after reading the article on how to return life insurance for a car loan, there should not be.