Cancellation of insurance after receiving a loan: grounds, reasons and documents

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

Each time applying for a loan, the borrower is faced with the need to purchase an insurance policy, and sometimes more than one. The bank, as a credit institution, seeks to minimize its risks, and the borrower does not want to overpay for a service he does not need. Let's try to figure out when it is better to be insured and how to cancel insurance after receiving a loan.

What is insurance and who needs it

Choosing from the loan offers offered by the bank, the borrower tries to choose the best option for himself: convenient in terms of annual interest and monthly payments. And very often he asks in bewilderment later why the bank employee is so persistently trying to “protect” him from various insurance situations? Why do credit managers constantly advise you to check the box “Agree to be insured”, otherwise predicting a negative bank response? Of course, the contract does not explicitly state thatthe borrower is required to purchase an insurance policy, but in reality…

Insurance is…

So, insurance is one of the banking programs with which he tries to protect himself from a possible default on credit funds. And today insurance is an application for all types of loans issued by banking institutions. When a client, experiencing financial troubles, can no longer pay his loan, the insurance company begins to perform this function for him.

What cases - insurance

Insurance is activated upon the occurrence of certain cases recognized as insurance:

• the occurrence of a situation in which the borrower loses his ability to work and receives a disability group (II or III);
• borrower loses his job against his will (layoff);
• he cannot fulfill his obligations due to natural disasters that have occurred (for example, a natural disaster);
• death of borrower.

The amount that must be paid for insurance is a certain percentage of the body of the loan (principal) and it is precisely because of the not always justified overpayment that most people try to cancel insurance after receiving a loan. By the way, the approximate amount of payments for it ranges from 25-30%. Insurance is added to each monthly payment, spread evenly over the entire loan term.

Of course, there are positive moments in insurance, but it is not always possible for an insured event to occur, and, consequently, compensation payments. For example, if the borrower's financial situation begins to change for the worse after applying for a loan (he quit his job and has no funds to pay off the debt), you should contact the insurance company with a statement about this as soon as possible. The terms in which you need to notify your insurer are prescribed in the contract, but usually they do not exceed 3 days.

How to reduce insurance payments

If the borrower refuses to insure, then in most cases he will have to wait for the bank to refuse a loan. This is due to the unwillingness of the bank to lose their money. But, if, nevertheless, the borrower allowed himself to be insured, there are several questions, the answers to which will help reduce payments:

1. If the loan is repaid in a short time, will the insurance amount also be reduced? Yes. And this is the most profitable way that will allow you to save on insurance as much as possible.
2. Are the funds returned for the purchased insurance if the insured event does not occur? The answer to this question is only in the loan agreement and is fixed in the form of a period during which this can be done. But the borrower must be prepared that the insurer will make every effort to prevent this from happening.
3. What threatens to refuse insurance if the loan has already been approved: a fine or changes in the loan agreement? There are two possible answers here. First: the bank ahead of schedule, within two weeks obligesthe borrower to return the loan funds to him and at the same time pay the pen alty stipulated by the agreement. Second, the bank will not require early repayment, instead it will raise the annual percentage for the use of borrowed funds by several points. How much the annual percentage will be increased is stated in the loan agreement, and in each case individually. Thus, the bank is trying to protect itself as much as possible from borrowers who issue a refusal of insurance after receiving a loan.

Obligation of the borrower or voluntary agreement?

There are not so many cases when insurance can be mandatory:

1. When applying for a mortgage loan: in accordance with Article 31 of the Federal Law "On Mortgage", the housing purchased by the borrower is pledged from the bank and, in accordance with the terms of the contract, must be subject to insurance.
2. By types of credit products issued by the bank. When the property acquired by the borrower is pledged in the bank, under the terms of the contract (for example, a car). In this case, an obligation is imposed on the borrower in the form of car insurance against damage or loss.
3. When issuing any consumer loan, the bank has the right to oblige the borrower to purchase he alth or life insurance policies, that is, to protect himself in every possible way for the proper performance of his obligations under the contract.

By the way, the Federal Law "On Consumer Credit" pleases with innovations. So, if, when applying for a loan, the bank insists on the purchase by the borrowerinsurance policy, for example, life, then today the borrower may not agree with this. This type of insurance is not required by law. In this case, the bank is obliged to offer the borrower an alternative solution: get a loan with insurance or get a loan without insurance, but with comparable conditions (for example, an increased interest rate). The bank is also obliged to offer the borrower to choose the insurance company himself, but from a specific list.

How to resolve the issue in Sberbank

The solution to the question - how to refuse credit insurance after receipt - is perceived by banking institutions in different ways. So, to return consumer loan insurance at Sberbank, there are 2 ways:

1. If 30 days have not passed from the date of conclusion of the contract, the borrower applies to the bank branch where he received the loan. Further, in a free form, an application is written for the return of unused insurance funds, addressed to the head of the unit. Here the insurance amount will be fully refunded.
2. If more than 30 days have passed since the signing of the contract, a similar statement is written. But the amount that will be returned will be 50% of the insurance amount.

You can return mortgage and car loan insurance using similar schemes for consumer loans. But there is a caveat: if the loan was repaid ahead of schedule, and the insurance was paid for the entire loan period, then it will be impossible to cancel the insurance after receivingloan. Sberbank will not return it.

Cetelem Bank

It is possible to return the insurance premium to the "Cetelem" bank, but what matters here is which policy was purchased. If there was a purchase of a life and he alth policy, then within 21 days from the date of signing the contract, you need to come to the office of the insurer and fill out a sample waiver of insurance after receiving a loan. The insurance will be returned to the borrower to repay the loan.

If comprehensive insurance has been issued (insurance of property damage plus disability and property rights plus he alth insurance), it will be more difficult. The insurer of Setelem Bank is LLC IC Sberbank Life Insurance. And in this case, the decision will be made by Sberbank after the borrower writes a refusal of insurance after receiving a loan. "Cetelem" in the return of insurance will not be able to help.

Bank "MKB"

It is almost impossible to return the purchased insurance policies to the MCB. You should read the contract several times so as not to lose money.

For example, a borrower applied to a bank for a consumer loan in the amount of 350,000 rubles. The loan manager verbally explained that a prerequisite for obtaining a loan is insurance (against job loss plus accidents, illness and death). Under the agreement, the amount could be repaid ahead of schedule, with a return of at least 50% of the amountinsurance. Such conditions suited the borrower, and he signed the contract without carefully studying it. The total amount on which the annual interest was calculated was 500,000 rubles. Six months later, the borrower repaid the loan ahead of schedule and wrote an application for payment of the unused sum insured to him. But, instead of the promised 75,000 rubles (insurance amounted to 150,000), he received only 9,000.

Having started to understand, the borrower very soon found out the truth: carelessness when studying the loan agreement cost him the purchase of 4 insurance policies in a popular insurance company, two in another company. For joining collective insurance, the fee in the amount of 60,000 rubles is not refundable at all under any circumstances. Despite the written refusal of insurance after receiving the loan, MKB did not return any more money to the borrower.

Bank "Renaissance"

Renaissance Bank allows its borrowers to opt out of insurance in two cases.

1. After signing the contract within 5 days, the borrower must issue a waiver of insurance after receiving the loan. "Renaissance" Bank will return the insurance premium. If you write a statement later, the insurance company will apply Art. 958 of the Civil Code of the Russian Federation, will terminate the contract and will not return the money.
2. When receiving credit funds ahead of schedule, the insured will return to the borrower only a certain amount of the insurance premium, namely "the insurer has the right to receive a part of the insurance premium, based on the time during which the insurance contract was in force."

A final word

The decision on whether to be insured or not is made by the borrower, but even with a positive choice, you can always cancel insurance after receiving a loan.

And one more piece of advice. Borrowers, make a duplicate application for insurance refunds and require the insurance company or bank to put the registration number and date on your copy. Sometimes documents tend to get lost…