How to return life insurance on a car loan: procedure, necessary documents and calculation of the amount of payments

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Lending institutions that seek to get rid of the risk as much as possible, often require the client to obtain a life insurance policy.

Buyers have the right not to conclude a contract on unfavorable terms 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 this needs to be done at the stage of paperwork, but after a positive decision from the bank is received.

How can I cancel a issued policy?

In the event that the contract was nevertheless signed or the policy clause was included in the loan agreement by default, is it possible to return the life insurance on 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 will become less every day of delay.

You must contact the insurers directly. To do this, they write an application for the return of life insurance on a car loan, collect the necessary papers and wait for an answer. If the company does not go forward, then you can go to Rospotrebnadzor, RSA, the Central Bank or go to court.

It is important to note that if more than six months have passed since the conclusion of the agreement, then insurers may refuse to satisfy the client's claim, referring to the fact that the funds were spent on various administrative expenses.

If the amount of the insurance premium is more than fifty thousand rubles, you can demand 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 monthly payments.

Procedure of actions

How to return the life insurance on a car loan? The procedure in this case will be as follows:

• Fill out a written claim to the insurance organization and the bank. It must indicate the reasons why a person wants to refuse this service.
• Within ten days after the filing of the relevant complaint, the banking organization, together with the insurer, must respond. In practice, there are many cases in which creditors made concessions to their clients, offering to settle everything peacefully.
• Ifbut 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 the trial, all the circumstances of the case will be established. In the event that the bank actually exceeded its authority and forced the client to enter into an unnecessary agreement at an inflated rate (insurance was included in the loan amount), then 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. Usually, all items are written in documents under which borrowers put their signature, often without reading them. Only later do they find out that a rather large amount is added to the cost of the car, on which interest will also be charged.

Thus, it can be quite problematic to return funds for life insurance on car loans, and borrowers will face a lengthy trial. Even if such a case gives a positive outcome, further problems may still arise. For example, banks can increase the loan rate for the remaining period, if such a clause was provided for 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.

Calculate the amount

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 on a car loan. It was this period that was legalized in June 2016, and it is precisely this period that borrowers who do not want to use certain imposed services should fit into. If the citizen managed during this period, then the insurer undertakes to return the amount paid to him, and rather quickly, 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 organization, see how it is terminated in general and find out if it is possible to return the payment.

Most often, this is possible only if the buyer makes early payments with a credit institution. To return life insurance in case of early repayment of a car loan, you must present a certificate of no debts. They take it from the bank. After receiving it, the client in the same way applies to the insurer or to the address of the financial institution in order to receive part of his money.

It is no coincidence that the phrase “part of the money” is mentioned here, since the return of life insurance on a car loan in full is possible only if you apply no later than two days after the signing of the documentation. After that, they will consider that the service was provided to the client, which means that they will be able to return much less to him, that is, the amount minus certaincosts. We talked about how to return life insurance on a car loan. Next, we describe the papers required for this.

Required documents

So, as already noted, in case of missed deadlines, the return of life insurance on a car loan is allowed only if the loan is repaid early. At the same time, it is worth trying to return at least some of your contribution. To do this, contact the insurance company, and not the banking organization. The bottom line is that you need to write an application, submit documents and wait for an answer.

Together with the application to the company, you should provide:

• Customer's passport along with a copy of the car loan agreement.
• Policy with a certificate taken from the bank on the full repayment of the existing debt.
• Receipt for payment of the premium on the insurance policy.
• Details of the account where you need to return the funds.

The terms of the agreement may state that insurance is not returned in case of premature settlement with the bank, then, unfortunately, the client will not receive money back.

How to return life insurance on a car loan to 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 let's look at how to return life insurance on a car loan to VTB.

So, termination of contracts incooling periods are produced as follows. After receiving a loan, clients collect a certain package of documents. For example, a passport along with an insurance contract, a receipt for paying the 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.

Additionally, 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 obtained from the relevant organization or found on the Internet. The application must indicate the name of the applicant along with passport data, the name of the creditor, a link to the contract, as well as insured risks. An inventory of all documents is attached to the application.

It is served to the company with which the contract was concluded. It must be written in two copies, 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 Russian Post. The terms of consideration are ten days from the date of registration. At the end of this period, funds must be transferred to the specified details. In the event that a financial transfer is delayed without explanation, applicants have the right to file a claim for return to the judicial authority.

How does this procedure take place in UniCredit Bank CJSC?

Question aboutreturn of life insurance on a car loan at UniCredit Bank and termination of the contract may occur at different stages: immediately after receiving a loan, in case of its 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. It is rather difficult to do this. 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 with the preparation of the application, as well as in the course of judicial settlements of the issue.
• During registration and immediately after the issuance of a car loan. This is the most reasonable way to cancel the policy. Since June 2016, amendments to the law on insurance have come into effect. One of them is 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 early repayment. Return of life insurance when repaying a car loan ahead of schedule at UniCredit Bank is also possible. Borrowers have the right to terminate the contract ahead of schedule, arguing that after the loan is repaid, they no longer need the policy. And since the size of the premium is determined taking into account the terms of the contract, an overpayment appears. Customers can expect to receive a refund of the unused portion of the funds that were paid for insurance.

Rusfinance Bank LLC

In this establishmentto return life insurance when repaying a car loan, you will need the following documents:

• Granting a waiver.
• Confirmation of the fact of payment for the premium (we are talking about a check, warrant, etc.).
• Copy of passport from customer.
• Among other things, you may also need a loan agreement.

This documentation can be delivered in person at the office or sent by registered letter with an inventory. It is advisable to make a personal visit, as this will significantly help speed up the receipt of money, increasing the amount of return. According to the law, the policy terminates immediately from the moment the application is delivered to the insurer. Further, funds are credited to the account no more than ten business days later.

Consequences of failure

The return of life insurance on a car loan at Rusfinance Bank occurs by writing a refusal to provide the service. Such an action should not incur any pen alties and consequences for a citizen. But we must remember that an agreement under the “life and he alth” program can help a person in the event of a force majeure event. 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 for customers. Moreover, this is true for all three parties (customers, bank, policy issuing company). What is the benefit?

For the firm itself, it is aboutreceiving premium payments, the amount of which is calculated on an individual basis 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 premium by certain coefficients (usually about two percent). Banks usually use the second option.

For a financial institution, there is a minimization of risk with a guaranteed return of funds due to the agreement, and an increase in the size of the loan (hence, an increase in interest income). Among other things, it is possible to receive a commission from the company.

For the client, in the event of an insurance situation and the inability to return money to the bank in connection with this, the borrower will not become a debtor, since the insurance office will return this money for him directly. A solid financial compensation can not only repay the debt, but also provide material borrowers for a sufficiently long period.

Conclusion

Thus, it is not possible for many people to accumulate a decent amount in order to buy a car, but buying a car on credit is quite a common practice today. Banks currently provide various car loan programs. Moreover, for issuing a loan, they put in the first place those who not only issued a policy for a car, but also their lives. In this regard, you need to be careful. If such a service is not interesting, do notlose sight of it and, in case of imposition, immediately refuse. If such insurance has been issued, then after reading the article, there should be no questions left on how to return life insurance on a car loan.