Is it possible to return insurance for a loan? Refund money for loan insurance: is it possible and how. What is insurance and why is it needed?

Borrowers know that when applying for a loan, the bank additionally offers to take out insurance. This is a voluntary matter, and no one has the right to force the client. However, if you immediately refuse insurance, the bank may increase the interest rate or even refuse to issue a loan. Therefore, it is more advisable to agree to insurance, thereby protecting yourself from possible risks. But is it possible to return the insurance after paying off the loan? We will answer this question in the article.

Credit insurance

According to the law of the Russian Federation, only insurance of collateral is mandatory.

Banks take out insurance to protect themselves first. But the borrower should know that according to the law of the Russian Federation:

Life and health insurance is carried out only at the request of the client (you can agree if the funds are taken for a long period, and there is a risk of losing your job, or there are health problems).
Collateral is insured without fail (it is beneficial for the borrower to insure real estate or a car).

Drawing up an insurance contract

If the client wishes to obtain insurance for the loan, the bank must draw up an insurance agreement. It should state:

Insurance policy amount.
Insurance return options.
Conditions for termination of the contract.
Subject of the agreement (life, health, collateral, etc.).
Insurance premium calculation.
Insurance return conditions.

There are cases when the bank imposes insurance and does not inform the borrower. In this case, there is also no insurance contract. In this case, you need to contact the bank to get the money back. If you receive a refusal, you can safely go to court.

Is it possible to return the insurance?

In case of early full repayment of the loan, the insurance policy continues to be valid. This means that you can get your money back for the insurance period that has not yet occurred. To do this, you need to contact the insurance company with a written application. In the best case scenario, the organization will return the remaining money. At worst, he will refuse, and then you need to go to court.

For a loan paid on time, you can also try to get the insurance back. At the same time, it makes no sense to write applications to a bank or insurance company. You need to immediately go to court, assessing the possible outcome of the case. The following options may be available:

Recognize the insurance contract as invalid. The court will analyze the contract itself, the circumstances under which it was concluded and determine the grounds for declaring it invalid.
Invalidate certain clauses of the agreement.

Another option to return the money is to change the beneficiary. Initially it is a bank, but you can change it to yourself or one of your relatives. This opportunity is provided by the law of the Russian Federation. This opportunity is especially relevant for mortgage loans or car loans.

Documentation

To obtain insurance after repaying the loan, you need to contact the insurance company with the following documents:

passport;
insurance policy;
loan agreement;
payment documents confirming payment of the loan and insurance premium.

When will my insurance claim be denied?

The insurer may justify the refusal by the following factors:

The application deadline has passed. If an insured event occurs, the borrower must contact the company no later than a month later.
The application is incorrect and some information is missing.
There are no documents confirming the occurrence of an insured event.

Insurance in different banks

Banks themselves determine the terms of insurance, and also choose the insurer themselves - a company that undertakes to repay the client’s debt upon the occurrence of an insured event.

Russian Standard Bank"

The bank offers several programs to protect against risk:

accident;
fraud;
occurrence of health problems;
job loss;
loss of property.

Insurance premiums are included in the monthly payment. If necessary, you can write an application for the return of insurance to the bank or directly to the insurance company.

VTB 24

The subject of insurance under the bank's programs is:

life;
job loss;
property.

The insurance premium may be included in payments, but may be collected as a lump sum. All conditions are specified in the contract. Refund of insurance on a VTB loan is possible if this condition is specified in the contract. You must apply for a refund to your insurer.

Home Credit Bank"

The organization issues insurance policies in case of loss of work, property and goods, and health problems. The bank cooperates with:

IC "Renaissance Insurance";
SK "Alliance"

The entire insurance amount must be paid by the client in a lump sum upon receipt of the loan. To return insurance, the bank invites clients to write a claim to the insurance company. In case of refusal, go to court.

Sberbank

When receiving a consumer loan, taking out insurance is voluntary. Sberbank clients can return the loan insurance within 30 days after receiving the loan. In this case, the money will be returned in full.

The subsidiary Sberbank Insurance provides life insurance in the following cases:

Disability leading to loss of ability to work.
Death of a client.

If you are taking out a mortgage loan, insurance may be required. The policy includes additional items:

Temporary loss of ability to work;
Change in financial condition;
Involuntary job loss.

You can return the insurance after repaying the loan under the following circumstances.

Is it possible to return the loan insurance after repayment of the debt and in case of early repayment, how to return the money in cases of termination of the insurance contract. How much money can you get? What documents are required to return insurance? Sample application for refund of loan insurance.

Not everyone knows whether it is possible to return the loan insurance upon early repayment and after repayment. The procedure has features that bank clients need to take into account. You should not enter into a conflict right away, because there are effective ways to get money back for loan insurance. A sample application for refund of loan insurance in case of early repayment is in the article.

(click to open)

Why do you need credit insurance?

Is it possible? When customers borrow money from a bank, they are asked to take out liability and life insurance. Thanks to such a policy, relatives will not have to pay money for him if, for example, he loses his job, health or dies.

What will they offer to insure against when applying for a loan:

disability;
dismissal from work;
serious disease;
deterioration in financial status;
death.

If a client takes out a consumer loan, he insures his liability to the bank and his life. Clients taking out a mortgage additionally insure the collateral against damage.

Fact
According to Russian civil law, it is not necessary to insure consumer loans, although banks create the opposite impression for their clients. If you take out a mortgage, you also have the right to refuse liability insurance, but collateral insurance will be mandatory.

Is it possible to return loan insurance?

An insurance contract with a bank is concluded on conditions under which there is usually a chance to get money back for insurance. According to the law on the return of loan insurance, the borrower has the right to terminate the contract when there is no need for further provision of the services specified in it.

In this case, insurers claim to pay for the insurance period that has already passed. If the debt was repaid exactly on time, then it becomes impossible to return the money for insurance. You can get back part of your funds in case of early repayment of the loan and in case of termination of the agreement.

How to return loan insurance

Compensation for the insurance policy is possible in the following options:

cancellation of the policy within 30 days from the date of conclusion of the contract;
refusal after more than 30 days is possible, but in this case no more than 50% is refundable;
return of insurance after repayment of the loan ahead of schedule.

How to receive the money:

make an application;
attach the required package of documents (it will be discussed below);
send documents to the insurer's office;
make sure that the acceptance mark is marked on the application;
wait for the insurers to act.

If insurers refuse to accept an application or do nothing to satisfy it, then it is necessary to file a complaint against the insurer’s actions with the Central Bank of the Russian Federation, since it is the one that licenses such companies in Moscow and the regions, as well as with the Prosecutor’s Office and Rospotrebnadzor.

Is it possible to return the insurance after repaying the loan?

The answer to the question is it possible return of loan insurance after loan repayment depends on how long the loan was repaid. It is impossible to return money for the insurance service after repaying the debt exactly on time set by the bank.

Refund of loan insurance upon early repayment

But the return of loan insurance upon early repayment is quite likely. In this case, the contract has not yet expired, but the service is no longer provided, that is, the overpayment for the policy must be compensated.

Necessary actions:

You need to read the loan agreement. Some banks compose it in such a way that it will not be possible to return part of the policy fee even by going to court. Therefore, it is necessary to read the contract before concluding it.
If the terms of the contract provide for the return of loan insurance after repayment, then find out which company is the insurer.
Address an application for the return of insurance on a loan from Sberbank and other banks to the name of the insurance company (a sample application for the return of insurance will be given below).
Attach all the necessary documents to the application.
Submit documents to insurers. This is done in person or by mail.
Upon receipt of the application, the company employee must put the appropriate mark.
If the insurers do not want to satisfy your application, then you must file a complaint addressed to the manager.
When the manager does not take measures to return your money, then you need to write a complaint to the Prosecutor's Office or Rospotrebnadzor, as well as to the Central Bank of the Russian Federation.

Sample application for refund of loan insurance

To the Director of the Bank "Name"

Perm st. Svobody 17

from Semenov Ivan Ivanovich

Perm st. Lenina 10, apt. 1

tel. 12-34-56

Statement

On March 1, 2013, I entered into a loan agreement No. 123 with your bank. At the same moment, insurance contract No. 456 was concluded. The contract amount was 150,000 (one hundred and fifty thousand) rubles, but I received 125,000 rubles. 25,000 rubles were sent to the insurance company as a contribution. The loan and policy were for 36 months.

On September 2, 2014, I fully returned to the bank the funds taken out on the loan - 150,000 rubles and all interest under the agreement. In connection with the early termination of the loan agreement, and, accordingly, the insurance agreement, I ask you to compensate me for the overpayment under the insurance agreement in the amount of 12,500 rubles.

I ask you to make a decision on my request within no more than 10 days. If there is no response and my demands are not satisfied, I will be forced to apply for reimbursement to the court and demand a percentage for the exploitation of finances that do not belong to you under Art. 395 of the Civil Code of the Russian Federation.

Required documents

When submitting an application to return loan insurance, you must confirm the facts of receipt of the policy and loan.

To return a policy cancellation and early repayment, the following documents are required:

a copy of the loan agreement;
certificate of absence of debts to the bank;
copy of the passport;
application for insurance reimbursement.

How much money can you get?

In case of early cancellation of insurance, the following results should be expected:

cancellation of the insurance contract within 30 days - the full amount;
refusal within 1-3 months – 50% of the amount;
refusal after more than three months - an amount proportional to the period remaining until the end of the contract.

While waiting for the consumer credit insurance refund procedure, do not forget that 13% income tax will be withheld from the amount due to you.

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You can refuse insurance based on instructions Bank of Russia N 3854-U, which applies to all lending agreements starting from June 1, 2016. It only applies to individuals.

Important! According to this decree you can completely cancel the insurance policy within 5 days after the date of conclusion of the contract(cooling period). In some cases, the insurance amount on the loan is returned within the period stipulated by the agreement itself.

Is it possible to return the insured amount for an already paid loan?

The law provides for the option of returning money if the debt was repaid ahead of schedule and the payment schedule was followed. In this case, you will be able to receive the insurance amount for the remaining period. For example, if the loan was issued for a year, and the full repayment of the debt was made after 6 months, you can return 50% of the insurance.

A refund cannot be made if there has been an insured event, which includes late payment, even if the corresponding fines have been paid. Insurance is also not refundable on completed loans paid under the payment schedule.

Which policies fall under the instructions of the Bank of Russia

The current insurance return law does not affect all types of policies. By law, you can safely refuse the following types of insurance:

in case of death or reaching a specified age;
from accidents;
additional medical insurance;
damage and loss of property;
damage or theft of land vehicles;
damage or theft of water transport (boats, boats);
OSAGO;
financial risk insurance.

What types of policies are mandatory:

medical policies for foreigners working in the Russian Federation;
medical policy for citizens of the Russian Federation located outside the country;
mandatory policies for admission to hazardous activities;
civil liability of drivers of international insurance programs.

How banks and insurance companies can circumvent the law

To assess your chances of getting your money back, you need to carefully study the loan and insurance agreements. Knowing about the possibility of claiming a refund, lawyers of banks and insurance companies often resort to tricks that do not allow borrowers to take advantage of their legal right. This includes the following points:

The bank may impose a ban on early repayment of the loan.
The banking organization itself acts as an insurance agent. In this case, a collective agreement is signed, to which the current instructions of the Bank of Russia, alas, do not apply.
Insurance is included in the basic package of banking services. This practice is typical for non-targeted consumer loans provided in the credit card format. When you issue a refusal, the bank may deprive you of other important package options or reduce the credit limit.
If in the loan agreement you have noted a clause stating that you have read the document and fully agree with its terms, it will be difficult to prove the imposition of services in court.
Because the law applies only to insurance policies, the company can set the cost of the policy itself low and the fees and commissions high.

If possible, show the documents to a lawyer who can tell you exactly what payments you can expect.

Both banks and, of course, insurance companies will drag their feet. This is especially true for accepting documents. In this case, when you apply in person, you must receive a receipt or a corresponding mark on the transfer of papers on your copy of the copies. Bypassing the system, you can send the collected documents by a valuable letter with an inventory of all enclosed papers, as well as with a mandatory return notification of receipt. In this situation, the bank or insurance company will not be able to refuse to accept the application.

In some cases, bank or insurance company employees may confiscate the original contracts from you in order to subsequently adjust them in circumvention of the law. So, if you hand over the original with your signature, it may not accidentally be lost and you will be asked to sign another (corrected) copy.

Insurance return procedure

If you want to return the loan insurance, you can contact the insurance company directly or act through the bank (if the policy is included in banking services). The procedure itself depends on who issued the current insurance contract and what are the reasons for its suspension.

Refund of loan insurance upon early repayment

If consumer credit insurance was paid in one payment and immediately after registration, if you make an early repayment, you have a chance to return the remaining amount. This right applies to all types of policies relating to credit. The basis for a refund is the fact that insurance services have been paid for, but will not be provided.

After repaying the loan, you must obtain the appropriate debt payment document from the bank. It is attached to the application. A copy of the insurance contract and a copy of the passport are also attached.

The contract with the insurance company itself should not be terminated before receiving the money, since in this case it can completely refuse on legal grounds. An exception will be situations where the current agreement stipulates the obligation to return part of the insurance money in the event of early termination of the contract with the bank due to full payment of the debt.

The insurance company reviews the application within 10 days, after which you must return the money or provide compelling reasons for refusal.

How can you refuse imposed insurance?

To comply with the procedure, claims for the return of loan insurance are sent to the bank and insurance company. This is necessary to provide an opportunity for a pre-trial resolution of the issue. This must be done within the legally prescribed cooling-off period.

It is allowed to terminate the insurance contract for a general consumer loan within 5 days from the moment it comes into force. For a car loan, this period is legally extended to 30 days, which applies to MTPL policies.

In some cases, the cooling period may be set by a specific bank. For example, when considering the question “is it possible to return insurance for a loan from Sberbank”, it is worth taking into account the individual conditions of credit programs, which allow you to fully return the insurance premium within 30 days from the date of conclusion of the contract or in the amount of 50% if the period exceeds 30 days. Along with the refusal application, you need to submit to the bank copies of loan and insurance agreements, as well as your passport.

If the insurance contract was signed separately from the loan agreement (the insurance conditions are not specified in the loan agreement), you must immediately contact your insurance company. In this case, in addition to the above documents, bank details for refund are provided. If the contract has already entered into force, you are required to return the amount minus payments for the past period; if not, the full amount.

Sample application for refund of loan insurance

An application for a refund of insurance can be in a standard form provided by the bank or written by the borrower himself. An example sample looks like this:

To: Head of the insurance company or bank Full name
Organization address.
From whom full name
Registration (residence) address and telephone number.

Statement

(Contract signing date) between me and ( Name of the bank) a loan agreement was concluded ( Document Number), and also simultaneously with the company ( name of the insurance company) an insurance contract has been concluded ( Document Number). The loan amount under the agreement was ( total amount in rubles in numbers and words) rubles, whereas in fact I was provided with ( amount of the loan body in numbers and words) rubles, and ( insurance amount in numbers and words) rubles was transferred to the company ( name of insurance company) as an insurance premium. Loan and insurance period according to paragraphs ( numbers of clauses of the agreement where the loan terms are indicated) the contract was made ( loan term in months).

(Early loan repayment date) I have fully fulfilled my loan obligations to the bank ( Name of the bank), returning the amount of debt ( total loan amount with insurance in figures and words) rubles and corresponding interest. In connection with the early closure of the loan, I ask you to return to me the insurance premiums paid in excess of the required amount in the amount of ( 50% of the insurance premium amount) rubles.

I request that the decision on my application be considered within 10 days from the date of its receipt. If there is no response from you or the above requirements are not met, on this issue I will file a corresponding statement of claim with the court demanding payment of the declared amount and interest payments for the use of funds in accordance with Article 395 of the Civil Code of the Russian Federation.

What to do if you receive a refusal

First of all, you can file a complaint against a banking organization or insurance company with Rospotrebnadzor due to the imposition of a service. This can be done within 1 year from the date of signing the agreement. You must submit a complaint to the Rospotrebnadzor office in your city. This can be done in person, by mail or by e-mail. If your complaint is confirmed and justified, an administrative case will be opened.

It is worth understanding that this will not actually return the money, but the response from Rospotrebnadzor will help you in the upcoming trial. By the way, if you missed the deadline for filing a complaint, still send it to the service. In this case, the opening of a case will be refused and the bank or insurance company will not incur administrative punishment. On the other hand, an answer will be provided in your case explaining exactly where and how your rights were violated, which is also a strong argument in court.

You can send an application to the court if within 10 days after submitting the application to the Investigative Committee you have not received a response (payment) or you have been given an unfounded refusal.

When planning a strategy for how to recover consumer credit insurance, you should start legal proceedings only if you are entitled to a fairly large amount. If you only want to reimburse a few thousand rubles, you are unlikely to cover the costs of bringing the case to completion.

Today, most people, due to a lack of funds, purchase goods on credit. These are not only telephones and household appliances, but also housing, cars, travel packages and jewelry. From the banking sector, of course, there are more and more lending programs.

But the bank not only issues a loan, but also imposes “necessary” insurance on it, obliging you to fork out a certain amount. Do you need this very service? Is it possible to refuse it or is it possible to return the insurance after repaying the loan and how to return the money paid? This will be discussed further.

Opinion of the law on the return of loan insurance

It is the law that regulates all relationships between the bank and the direct client.

How long does it take to get the loan insurance back?

On November 20, 2015, the Central Bank of Russia issued decree N3854-U, in which, in brief, the bank obliged insurance companies to provide for the right to refuse voluntary insurance within 5 working days from the moment the parties signed the contract. The period was increased to 14 days from 2018. This decree also applies to the insurance that the bank tries to impose when applying for a loan. To prepare for such innovations, the Central Bank gave all insurers time to prepare until April 4, 2016; it was from this date that the decree came into full force.

Please note that you have the right to terminate the insurance contract within 5 working days from the date of signing, i.e. when the loan is taken out, regardless of the day of payment. For example, if you went to pay on the 3rd working day, that means you have 2 working days left to cancel.

Representatives of insurance companies, in turn, were legally obliged to pay in such cases the policy amount in 100%, minus the days of use of the service, as well as within a 10-day period. If you submitted an application form for termination of the contract on the fourth day, then the insurer undertakes to return the amount, calculating % for 4 days of use, no later than 10 working days. Knowing the law on the return of loan insurance, and most importantly, being guided by it, no insurer will be able to mislead you when applying for a banking product.

But what to do if an insurance policy is signed and how to get the money back? We will talk about this further.

Imposing insurance and controversy

If, when issuing a loan, you were assured that insurance is a mandatory part of the loan agreement, this means one thing: gross violations of the rules “On the Protection of Consumer Rights” were committed during registration. This is also a violation of Art. 11 “On protection of competition”.

In such cases of registration, the contract has a clause according to which you are obliged to pay a certain fee for joining the “insurance program”, including compensation to the banking structure for expenses incurred and payment of insurance premiums to the guarantor. Such a maneuver by the bank contradicts Art. 927, 421, 422 of the Civil Code of the Russian Federation.

If you go to court, the bank will have to pay 100% of the full amount of insurance imposed on you.

Return instructions in 2019

Many, when applying for a loan, for example, a long-awaited 40-inch plasma TV, being so close to realizing their life’s dreams, do not read the documents offered by the bank manager very carefully and, of course, fall for the insurance bait. The majority of bank employees begin to assure that without this policy they will refuse to issue a loan and you, of course, without knowing the law, agree for the sake of the desired product.

When you wake up a few days later, you realize that you don’t want to pay the extra money and want to return the money, but what to do and what to do, because you’ve already paid. The main thing is that the money can and should be returned!

In this case, within the regulated 5 working days from the day of signing the contract, you need to come to the main branch in the city and submit some documents to the manager:

Application for waiver of loan insurance, filled out at the branch according to the sample;
A copy of the signed policy agreement;
A copy of the applicant's passport;
Receipt or check for payment of loan insurance.

When filling out the application form, you must provide the following information:

Passport details.
Complete and accurate contract information.
Reason for termination. It can be anything, even banality: “I’m not interested in insurance,” or simply refer to the law.
Signature and date.

Insurers must provide a sample application; if not available, you can write it in free form.

Sample application

Sample application to Sberbank

Sample application (claim) for refusal of insurance

If there is no branch of the lender's bank in your city, then you should send documents for the return of loan insurance by mail, in the form of a registered letter. If you are going to use the latter, then do not forget to make an inventory of the documents being sent. Also, when submitting an application in person at the department, you should make a certified note on your copy of the refusal that it has been accepted.

After receiving the documents, the insurance company is obliged to pay the amount within the 10-day period established by law. In practice, they try to delay compensation until the last minute, but it is still paid in full. In case of violation of the terms of payment of the required payment, you can first call the hotline, informing that a claim will be sent to the bank on your part. As is observed in such cases, the money comes within 24 hours.

Is it possible to return the insurance after repaying the loan?

Having read the above information, many people have a question: “Is it possible to return insurance on a loan that has already been closed?”

This is practiced only if the loan is closed and the insurance contract is still valid. Although the procedure is not easy, it is still possible, by adhering to some rules, to return some of the money.

It is not uncommon for a loan to be repaid prematurely in order to save money on interest payments. But in such cases, the bank is silent about the possibility of paying insurance back for unused contract periods.

Refund of insurance upon early repayment of loan

If you nevertheless closed the loan ahead of schedule and are thinking: “How to collect the unused insurance amount?” follows:

Contact the insurance company with an application for the return of part of the amount with justification, for example, they were able to repay the loan ahead of schedule. In this case, the insurer is obliged to recalculate the total amount of payment for the policy and return the unused difference;
Terminate the contract and, starting from the next day, no longer pay insurance premiums.

If you were not aware of whether it is possible to refuse insurance on a loan after receiving it, then there is a chance to return at least part of the money after its closure.

For which types of loans can insurance be returned in 2019, and for which not?

The bank, represented by a competent manager, certainly takes a risk when issuing a loan. Imposing insurance on a client is like a guarantee of payment of an accepted order. After all, if we are talking about large bank investments, then insurance is definitely needed, because it is well-reasoned. Let's look at which products you can get a refund of loan insurance for:

Cash loans;
Credit cards;
For consumer lending.

The policy of such products is voluntary and mainly insures the client who received the loan:

Borrower's life;
Cases of loss of main job, including layoffs;
Financial risk protection;
Property insurance, etc.

“Voluntary” insurance policies, when issuing the listed loans, are disguised as “mandatory” in the example. This of course violates the law. The client can refuse insurance, which will not affect the financial decision in any way. institutions for issuing a loan. You can also refuse insurance after receiving a loan.

There are also banking products for which an insurance policy is truly mandatory and if you refuse to purchase it, the bank has every right to refuse to issue the product, namely:

Casco – for car loans, the purchased movable property is necessarily insured and remains documented as collateral with the bank;
Mortgage - just like the previous loan, this product requires insurance and collateral.

When issuing this type of product, the bank does not violate anything, and if refused, has the right to refuse issuance.

Do you need the help of a lawyer?

When you signed the loan agreement, you did not read it carefully and now you are wondering: “Is it possible to refuse insurance on the loan after receiving it?” This is a fairly common phenomenon, and yet there is always a way out.

If 5 business days have not yet elapsed from the date of signing, then you do not need the help of a lawyer. Also, after the expiration of the period, you can contact the financial institution with a claim for the return of loan insurance. Many banks are expanding their “customer loyalty program” and can make concessions by issuing a waiver of insurance after receiving a loan, even up to 30 business days from the date of insurance. But of course, not everyone values their “breadwinners” so much and they definitely refuse their claims.

In such cases, you need to consult with a lawyer and prepare documents for the court, of course, if this is appropriate.

Undoubtedly, the Central Bank of Russia has provided great assistance to borrowers in resolving the question: “how to refuse loan insurance after receiving a loan?” Now all the trump cards are in your hands. The main thing to remember is that insurance is not required and any document should be carefully studied before signing, so as not to knock down office thresholds later, dealing with paperwork.

Granting a loan is almost always a risky endeavor for both banks and borrowers. In this regard, many banking organizations sell insurance products to their clients when drawing up a loan agreement. This procedure is extremely important for financial institutions, since it reduces the risk of the borrower not repaying the issued funds. How to return insurance for a loan? In what situations can this be done?

Is credit insurance legal?

If a bank provides one service to a client, it does not have the right to impose another on him. Thus, it is illegal to impose insurance when applying for a loan. Therefore, if the bank forcibly sold another service to the client, the client has the right to demand the return of loan insurance and compensation for losses.

Some financial institutions are beginning to argue that the agreement was entered into by the insurance company and not by them. However, if the agreement with the borrower was concluded by both the bank and the insurance company, it is not considered legal. Insurance is imposed and has nothing to do with the loan agreement. According to the Law “On Consumer Loans”, banks do not have the right to force potential borrowers to enter into insurance contracts.

Is it possible to return the insurance?

Often, out of ignorance, borrowers purchase an insurance product. This already means that they agree with all the provisions of the concluded agreement. Quite often, in one of the paragraphs of the document there is a line stating that the borrower has no claims against the bank. Therefore, financial institutions in most cases insist that borrowers purchase insurance of their own free will. And when a refund of loan insurance is issued, the client is not credited with all the funds paid. Banks can only return an amount that is proportional to the period of validity of the agreement.

If a court is involved in the consideration of the complaint, a decision may be made in favor of the client or the financial organization. It all depends on the essence of the contract, evidence, arguments. It is impossible to receive paid funds when the contract was concluded more than 3 years ago. It is also impossible to return money in situations where the agreement contains a clause stating the impossibility of a return if it is terminated early.

Types of insurance events

Before considering the question of how to return insurance for a loan, you should look at the types of products that are issued by banks. They may offer loan, collateral, or life and health insurance for the client. It is important for a financial institution that the loan is insured, since this way it will be able to return the funds issued in any situation.

Collateral insurance must be provided. If the property that serves as collateral becomes unusable, the debt will be repaid by the insurance company. It is advisable to insure life and health when the client will repay the loan over a long period of time.

Mortgage and car loan

How to return insurance for a loan taken out to buy a home or car? It is practically impossible to do this. The fact is that specifically in these cases, insurance is carried out on the collateral, namely the property. However, the insurance contract cannot be terminated until the loan is fully repaid. The only exceptions may be situations when the borrower repays the loan in full ahead of schedule or pays insurance premiums in full.

Consumer loan

How to return insurance for a loan for a product? This is much easier to do than in the above cases. In this case, two return schemes are possible. The first is to refuse the insurance product. The second way is to terminate the contract with the insurance company during the validity period of the policy. The above procedures are relevant for cases where the debt has not yet been repaid.

How to get back insurance for early loan repayment?

Quite often, one of the loan conditions is the annual payment of an insurance policy fee. Therefore, in case of early repayment, borrowers can demand from the bank a return of the money that was paid after this point. To return the funds paid, you must contact the bank and write a corresponding application there. In this case, the financial institution may compensate the amount paid in excess of the required amount or refuse to return it. If the bank refuses, the borrower has the right to go to court and demand recovery of unjust enrichment from the financial institution.

If the loan is repaid

Some insurance contracts contain clauses according to which the borrower has the right to partially return the funds paid upon full repayment of the loan. How to return insurance for a paid loan? Such situations often occur when the bank simultaneously performs the function of an insurer. However, in most cases, loan agreements do not contain this condition. Therefore, the borrower can restore justice only by going to court.

If the loan agreement is still valid

How to return insurance for a bank loan that is still being repaid by the borrower? This can only be done within one calendar month from the date of receipt of funds. The borrower needs to contact the bank and cancel the insurance product in writing. This development of events is only possible in the case of consumer loans.

How to return insurance for a loan from Sberbank?

If you contact Sberbank within 30 days after receiving the loan funds, the insurance money will be reimbursed in full. However, if the client applies at the end of this period, then the bank can only partially refund the insurance premium. To reimburse funds for the imposed insurance, the borrower must contact the Sberbank branch where he took out the loan and write a corresponding application.

You need to have your passport with you. The case will be considered for a maximum of one calendar month. If Sberbank’s decision is positive, the funds will be credited to the borrower’s card or account, which he indicated when writing the application. When the bank refuses to return the funds and the borrower has not violated the terms of the loan agreement, he has the right to go to court. The same procedure will apply to insurance reimbursement from other financial institutions. It is important to remember that the borrower must pay attorney fees and other legal costs.

If the bank cheated from the very beginning

Often, clients are not warned by bank employees that they are signing a loan agreement and at the same time taking out insurance. This information is often kept silent by contact center employees who fill out loan applications over the phone. And when the borrower signs an agreement for which the application has been pre-approved, he is given a smaller amount than specified in the agreement. The remaining funds go to pay for the services of the insurance company. Therefore, the loan agreement must be read very carefully, because it will probably contain information about insurance.

How to return the imposed insurance for a loan if such a situation has already occurred? This can be done by contacting the bank or in court. However, it is unlikely that the funds will be returned, since the borrower has already signed the agreement. This means that he has read and agrees to the terms of the agreement. This is exactly the argument that banks give. But, based on judicial practice, we can say that the courts often side with debtors. First, you should file a claim with the bank, and then go to court.

What to do if the bank refuses to return the funds?

The natural reaction of any bank to such a request from the borrower is reluctance to return the funds. Therefore, financial organizations often try to reduce the amount requested by the client, arguing that there are additional costs for the insurance period. This problem can be solved by requiring the bank to calculate actual expenses. The only cost item may be servicing the contract, when the insurance agent is paid a commission.

The borrower needs to insist on returning the full amount, and if necessary, write a complaint to the bank management. A refusal can be obtained if the 30-day period has expired or if the client has provided little information about the loan issued. There is no point in delaying time; if the bank refuses to return the money, you should immediately go to court.

The impact of a refund on your credit history

The borrower's credit history does not contain information about insurance payments. In this regard, the credit file will not be updated with information about the return of funds for imposed insurance, even if there has been a trial.

How to return insurance for a loan? This can only be done in cases of consumer loans. To receive a refund, you must contact the bank with a corresponding application within 1 month. If the financial institution refuses to return the funds, the borrower can go to court. He will take the borrower’s side if he has not violated the terms of the loan agreement.