One of the additional services was paid to Russians when using the loan – insurance. The risk of the baseline is reduced. If certain circumstances occur during the term of the contract, the bank will receive money from the insurance company (IC).
However, loans, especially consumer loans, are most often repaid early. It turns out that the need for additional service will disappear. In this case, will the insurance return after the loan is repaid to the debtor? Yes, but not quite.
A little history
The Bureau of the Supreme Arbitration Court adopted a decision according to which bank credit commissions referred to measures that violate consumer rights. In the coming years, hundreds of cases concerning the recovery of illegal amounts were considered. Banks were forced to cancel the commission, which was an important source of their income. But then quickly found an alternative – increased rates using funds.
After the entry into force of the Federal Consumer Credit Act, a new problem arose – the imposition of insurance contracts when issuing a loan. Clients started filing complaints and complained:
- the fact that the banks that frightened them by refusing to lend imposed unnecessary contracts;
- the high cost of insurance services;
- the fact that the refusal to reimburse ancillary services was originally provided for in the credit agreement.
On the one hand, banks increase commissions and the other is that customers are not aware of their rights. Afraid of refusing to get a loan, they make more contracts and then think about how to return the insurance after paying the loan.
Who needs it
There is still a need for insurance. Banks receive additional collateral to refund money in unforeseen situations. If an insured event occurs, the company transfers the specific amount to the credit institution to repay the loan. If it exceeds the balance of the debt, the difference is paid to the debtor (theoretically).
If the amount of compensation is not sufficient to cover the debt, the bank is looking for ways to withhold funds from the client.
Most often insured risk of death, getting disability groups 1, 2. If we are talking about a real estate object, will be paid compensation in the event of the unlawful conduct of other persons, water damage, fire due to natural disaster, natural phenomena, vehicle theft, accidents.
Pursuant to Article 421 of the Civil Code of the Russian Federation, natural and legal persons may enter into contracts. This means that the bank has no right to impose any service on its customers as a prerequisite for obtaining a loan. At the same time, the law specifies the case where the loan is not provided without the client’s life insurance.
We are talking about registering a mortgage and buying a car. If the contract is signed, payments are regularly accepted, and the logical question arises: do I have the right to return the insurance after I have paid the loan?
The beneficiary of such transactions is the Bank. In the case of full repayment of the loan, the client has the right to terminate the insurance contract because the property becomes its property. The Bank is obliged to recalculate and transfer the balance of funds.
The insurer is entitled to a part of the remuneration. The amount is proportional to the duration of the contract. The person who has paid the loan has the right to a refund of the insurance. But provided that the loan was repaid in advance.
This means that it will not work to refund the insurance after repaying the loan on time. The procedure depends on which credit was issued: the consumer or collateral. In the first case, the client’s life is insured and in the second case – reinsurance.
Ways to Save
Banks are therefore not entitled to deposit insurance when applying for a loan unless the law provides otherwise. If this still happens, try not to include the service cost in the total loan amount. Otherwise, interest will be charged. The person who has paid the loan has the right to a refund of the insurance. This can be achieved in such situations.
A positive decision can be reached in case of early repayment of the loan. This option will be described in detail below. It should be noted that money is not returned automatically. You will need to contact your bank branch, write a statement, collect copies of documents, and then wait for the decision.
Still how to return credit insurance? The client may have a disease for which an agreement is prohibited by law. The exceptions are listed in the contract itself. But no one signs a medical examination before signing. The client simply does not need to know about such an exception and pay the cost of the service. You can order a conversion and request compensation for the money paid. But even in this case, the client will not receive the full amount, but 87% (including 13% tax).