Loan insurance return application: sample, registration rules, deadlines

In the process of obtaining a loan, banks offer potential borrowers to conclude an insurance contract. If the client is unable to pay the debt, the obligation to close it before the bank rests with the insurance company. But in practice, the opposite situation often arises, and bona fide payers are wondering about the possibility of repaying loan insurance for early repayment. But how much will be received? And who should give the money - an insurer or a bank?

Loan insurance concept

Before returning the insurance premium for a loan, you should study the essence of such insurance. The Bank proposes execution of an insurance contract to a client who applied for credit money in order to reduce his risks associated with non-repayment of debt. Before agreeing to such an offer, the client should distinguish between compulsory and voluntary insurance accompanying consumer loans, since each such policy is quite expensive.

Compulsory insurance

According to the legislation, insurance, which accompanies the receipt of credit funds, is not necessary for the borrower, it can issue only on a voluntary basis. But this rule has an exception. If a loan provides property as collateral, then it is subject to insurance under the following types of loan agreements:

1. Mortgage credit lending. Collateral when issuing loans secured by immovable objects and obtaining a mortgage loan must be insured.
2. Car loans. A credit institution has the right to oblige the borrower to issue a CASCO for the purchased transport if a car loan is issued.

Voluntary insurance

All other varieties accompanying the conclusion of a consumer credit agreement are voluntary for a bank customer. In order to figure out whether it is possible to return insurance on a paid loan, you should carefully study the contract. You can return this overpayment on a loan if the contract provides for it. It is such insurance that credit organizations impose most often:

1. Financial risk.
2. Home Mortgage Insurance.
3. Job loss.
4. Health, life of the borrower (disability, disability, death).
5. Other property of the client, except for an immovable object and a car.

Legal regulation

On 01.06.2016, changes in legislation relating to voluntary insurance came into force. These changes work in favor of the borrower, in accordance with them, bank customers have the opportunity to return money by terminating the imposed insurance after payment of the debt. To do this, you need to make an application for the return of insurance on a loan, a sample of which can be obtained from a company or bank. At the legislative level, such a right is enshrined in the following regulations:

1. The fourth paragraph of Article 3 4015-1-FZ.
2. Article 31 102-FZ.
3. The tenth part of Article 7 353-FZ.
4. Article 343 of the Civil Code of the Russian Federation.
5. 3854-U CBR.
   

Return option

In accordance with the new rules of credit law, the bank does not have the right to impose the execution of additional services on the client. But there are two different situations: when the client refuses to conclude an insurance contract before receiving a loan, and termination of the loan agreement after the client has returned the debt. In each of these cases, the client has the right to refuse the service, including after the contract is concluded. So will insurance be returned if you close the loan ahead of schedule? Unfortunately, many banking organizations are in no hurry to return the premium on a loan obligation.

Cases in which no refund is possible

According to the rules of credit law, a client has a legal right to return insurance after a loan has been paid. However, despite important legislative changes for insured customers of the bank, there are certain situations when the issue of repaying an overpayment after repaying a loan amount remains a problem and must be resolved in court:

1. The term for concluding loan and insurance contracts. Legislation that entered into force on 1.06.2016 applies only to new contracts. It is not possible to return insurance under agreements concluded before the specified date.
2. Collective insurance. Legislation applies to contracts that are concluded directly by the citizen with the insurer. If a credit institution provides insurance under a collective agreement, then it is impossible to return insurance within the established 5 days.
3. Choosing a loan option. In cases where a banking organization offers a potential borrower a choice of two credit models - for a larger percentage without insurance or for a lower percentage, but with insurance, and the client chooses the latter option, the situation is considered as a voluntary decision of the borrower to take out insurance.
4. Terms of the insurance contract. If the return of the unused insurance premium upon termination of the contract before the deadline is not provided for by the insurance conditions specified in the agreement, the client has the right to repay the loan ahead of schedule, but in this case the balance of insurance funds is not refundable.

Documents to be provided to the insurer in order to return insurance

If the bank, upon drawing up a loan, imposed the execution of an insurance contract, then to terminate it, you should contact the insurer directly by providing a package of the following documents:

1. Original and copy of the loan agreement.
2. Passport.
3. Application for the repayment of credit insurance (sample is presented below) or a desire to refuse a voluntary insurance contract.
   
   In this case, the document should indicate the desired method of obtaining money. If the contract is terminated ahead of schedule, then the application is drawn up for the return of the remaining part of the insurance.
4. Bank statement confirming early closure of the debt.

You can familiarize yourself with the rules for processing an application for the repayment of loan insurance at the bank that provided the funds, or at the office of the company with which the contract was drawn up.

Refund of insurance within 5 days from the date of signing the loan agreement

The Bank of Russia, which regulates the credit and insurance markets of the country, has designated a period of time representing a cooling period during which it is possible to withdraw from a contract. The deadline for submitting an application for the repayment of loan insurance is 14 working days. It is worth noting that if an insured event occurs within the specified 14 days and the document begins to work, then not the entire amount of the premium can be returned. If the client falls within the indicated period, but the insurance did not start, then the whole process of refund should occur in the following order:

1. Within 14 working days from the moment of conclusion of the contract, the citizen should apply to the insurance organization and submit a statement of his desire to refuse the concluded voluntary insurance contract, indicating at the same time the details for which the funds should be directed.
2. The insurer must necessarily affix a visa confirming that it has accepted the application for consideration on the applicant’s copy, or send it to the applicant by registered mail with a return notification and inventory.
3. The insurer is obliged to return the money to the borrower within 10 days.
   

Features of the return of insurance premiums under a collective agreement

The new legislation does not apply to collective insurance. This type of insurance has a peculiarity, and it consists in the fact that the insurer is a bank, and not an individual who just joins the contract. In this case, you should study the contract and insurance rules to familiarize yourself with other conditions that allow you to refuse insurance. Insurers and banking organizations independently develop the conditions under which termination of collective insurance upon repayment of the loan is provided. That is, the contract may not provide for the possibility of a refund in case of early repayment of the debt.

The procedure for repaying insurance premiums for early repayment of a loan

It makes sense to initiate the insurance return procedure if the insurance premium has been paid in advance. The life insurance of the borrower is necessary with an unpaid loan. The same applies to collateral. This means that the borrower has the right to repay the loan insurance for early repayment of the loan. In this case, it is possible to return the remainder of the premium paid. In such a situation, you should first contact a banking organization that can redirect the borrower to the insurer in order to resolve the issue. The application for a refund should be made together with the application for early closure of the loan. Or right after that. A loan insurance return application form can be obtained both at the bank’s office and at the insurance company.

Premium Refund After Cooling Period

If the provided 14 days have expired, you should first contact the bank. The extended terms for the return of the insurance premium are provided by the following credit organizations: Home Credit, VTB24, Sberbank. However, not all banks are so loyal. Often, financial institutions send a refusal in response to a claim, citing the fact that the borrower has signed an insurance contract voluntarily. In this case, the issue can only be resolved in court. Moreover, when drawing up an application for the return of insurance on a loan, it is better to coordinate the sample with lawyers. Otherwise, you can make a lot of mistakes.

Application Form

Typically, banks and insurers have their own samples for filling out documents. Before you make an application for the return of insurance on a loan, you should make sure that it contains the following information:

1. Document's name.
2. Customer data - his name, passport information, address.
3. Date of signing the insurance agreement.
4. Place of registration of the contract.
5. Signature.
6. Information about the loan agreement (its number, validity period, cost) and early repayment (date when the loan was actually closed).
7. Details to which the organization should direct funds.

A sample application for a refund of credit insurance will help to do everything right.

Return in court

This option is not suitable for all citizens. Statistics show that in many cases, court decisions regarding imposed insurance are negative. However, decisions on the same cases differ in Moscow and the Russian regions. Such claims relate to the field of consumer rights protection, which means that a citizen has the right to choose the place for filing a claim (at the place of registration of the contract, or at the residence of the beneficiary). This means that you can file a lawsuit in the region of the country where similar cases end in favor of the plaintiff, that is, positively.