Termination of the OSAGO contract: documents, conditions, calculation of the balance of the sum insured

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

Today, any vehicle owner knows what an insurance policy is. The most important thing when making it is to choose a reliable organization. Each driver may encounter a situation where early termination of the OSAGO agreement is necessary. It is quite possible to do this, but without knowledge of all the intricacies of the law, it can be quite problematic. However, if you follow certain instructions, which will be given below, you can avoid pitfalls and get your money back without any problems.

General information about early termination of the insurance contract

There may be quite a few reasons why you may need to terminate the OSAGO agreement, however, regardless of them, you should fully adhere to the current legislation. This is the only way you can achieve the desired result and do not give the insurer's lawyers a reason to deny your legal right.

After all legal formalities are settled, the driver is en titled to receive the amount previously paid for the policy, with the exception of 23 percent of the cost of insurance,which include deductions from the insurance company of the mandatory collection of the Union of Motor Insurers, as well as related costs of doing business.

What documents are required for termination

Termination of the OSAGO insurance contract is a standard procedure that requires the driver to have a certain package of documents. According to the current legislation, it is necessary to prepare:

• receipts for payment of insurance services under a valid policy;
• original contract;
• contract for the sale/purchase of a car;
• standard form application for early termination of insurance;
• any document proving your identity.

This is a basic list of documents that is mandatory. However, depending on the reason for termination, the insurance company has every right to require some additional documents. Therefore, it is recommended to clarify in advance with the representatives of the insurer the exact list of all necessary papers and prepare them in advance so that the termination of the OSAGO agreement takes place as quickly as possible and without unnecessary problems.

In what cases may it be necessary to terminate the insurance contract?

Today, early termination of OSAGO is possible in the following cases:

• death of car owner;
• expiration of the insurer's license to carry out its activities;
• traffic accident in which the car was very badly damaged and is not subject torecovery;
• change of car ownership.

In some cases, it is possible to terminate the OSAGO agreement on the initiative of the insured, however, in practice, such cases are extremely rare, so it makes no sense to dwell on them. Depending on the driver's reason for wanting to cancel insurance early, the cancellation process can be different. Therefore, each of the possible cases should be considered separately.

Death of car owner

If you want to terminate the insurance contract due to the death of the legal owner of the car, then you need to prepare the following documents:

• original insurance contract;
• all receipts for a valid policy;
• death certificate of vehicle owner.

When the entire package of documents is prepared, all that remains is to contact the insurance company and submit a corresponding application.

Car beyond repair

If the car as a result of an accident received damage incompatible with life, then the term of the OSAGO contract is terminated automatically, however, in order to receive monetary compensation, the owner of the car will need to present receipts for payment and the original insurance contract.

Termination of the license from the insurer

If an insurance company's license to engage in this type of activity has expired, then the policy terminates automatically and you will not be required toabsolutely no documents and statements. The whole problem is that it will be very difficult to receive monetary compensation in this case.

Change of car owner

Is it possible to terminate the OSAGO contract when transferring the right of one's own to a vehicle to another person as a result of the sale or donation of property? In this case, the termination procedure takes place in the standard manner, however, everything will have to be de alt with by the former owner, whose personal data are indicated in the insurance contract.

Termination procedure: when is the best time to apply?

Many drivers are interested in the question of how to return money for insurance. Previously, the main cases were considered that allow termination of the contract between the driver and the insurer, as well as the documents necessary for this, however, when is it better to apply?

A valid insurance policy loses its legal force from the moment the driver contacts the insurance company, and not after the official termination of the contract. Therefore, it is not recommended to delay the filing of an application, since the amount of monetary compensation depends on it. To make it clearer, let's imagine the situation that the car was sold in April, and the former owner of the vehicle filed an application with the insurance company only in July. In this case, there will be no compensation for 4 months, since the insurance policy was considered valid.

What documents will you need to collect?

Very often, many insurance companies deny their customers the possibility of early terminationinsurance. In order not to find yourself in such a situation, it is recommended to prepare a package of documents in advance, which includes:

• original plush;
• application for termination of the OSAGO contract of the established form;
• passport or driver's license;
• receipt of insurance payment;
• copy of TCP;
• copy of the purchase / sale agreement, as well as the power of attorney issued to the new owner;
• photocopy of death certificate, in case of premature death of the rightful owner;
• act on the disposal of the vehicle, if it is not recoverable;
• additional documents that may be requested by the insurer.

If everything is in order with your documents, however, representatives of the insurance company stubbornly refuse to accept your application for termination of the policy, then send them by registered mail to the physical address of the main office. In this case, the company simply will not be able to ignore your appeal and will be forced to give an official response.

How is compensation paid?

According to the current legislation, the return of money to the insured is carried out immediately after the legal termination of the OSAGO contract is completed. If it is more convenient for the client to have the money transferred to his bank account, then the settlement procedure may take two weeks longer.

At the same time, they are en titled to a refund upon termination of car insurance:

• direct heirs of the owner of the transportfunds in the event of his death;
• legitimate car owner;
• any person who has a notarized power of attorney from the owner of the car.

The amount of compensation upon termination of the insurance contract depends on several factors, the main of which is how much OSAGO costs. There is a special formula for calculating the amount of compensation.

Formula for calculating the cash payment upon termination of insurance

You already know how to return money for insurance in case of its early termination, however, how much can you count on? Insurance companies use the following formula to determine the amount of compensation:

D=(P-23%)(N/12), where:

• D - amount of compensation;
• P - the amount paid by the insurer at the conclusion of the contract;
• N - number of unused months;
• 23% - related costs incurred by the insurer in the conduct of each client's case.

Thus, it makes sense to terminate the OSAGO contract ahead of schedule, a sample of which can be found on the official website of the insurer, in order to receive monetary compensation only if at least 6 months are left before its expiration. If there is one or two unused months left on the policy, then termination does not make any sense, since the amount of compensation can be significantly less than your associated costs, regardless of how much OSAGO costs.

Early termination of OSAGO: what if the money does not come?

There are cases when the driver submitted an application on time, prepared the necessary package of documents and, in accordance with all the rules, issued the termination of the insurance contract, however, after two weeks, the cash compensation was not received in his bank account. What to do in this situation?

The first step is to contact the insurer and try to find out the cause of the problem. It is possible that the payment is simply delayed. If the fact of payment is confirmed, then there is nothing wrong with this and you need to wait a little more. However, as practice shows, almost all insurers are very reluctant to terminate the OSAGO contract and return money to the client. In this case, you must make a copy of the policy and application, and contact the Union of Motor Insurers. This self-regulatory body deals with the resolution of various disputes between drivers and insurers, and has many levers of influence on company representatives who act in bad faith. In most cases, contacting this organization helps to solve the problem very quickly and the payment of compensation for the termination of car insurance reaches the addressee very quickly.

When is there no policy termination compensation?

Early cancellation of insurance services is the legal right of every citizen, however, in legal practice there are a number of cases when the payment of monetary compensation is not provided. One of these is the termination of the insurance company. For example, leg althe person was liquidated as a result of bankruptcy, and his inability to fulfill his financial obligations to clients. In this case, the legislation releases the insurer from fulfilling its obligations.

The second common case is the termination of the contract by the insurer due to the fact that the client provided false information. In addition, if the owner of the vehicle is planning a long trip abroad, and does not plan to use the car during this time, then compensation is also not provided, since in this case there are no legal grounds for a refund. In order not to get into an unpleasant situation associated with early termination of insurance, it is recommended to read the contract very carefully when applying for an OSAGO policy.

Conclusion

The process of terminating an insurance contract is fraught with many problems and does not always go without a hitch. This is due to the fact that there are a lot of holes in Russian legislation that unscrupulous insurers do not disdain to use. Therefore, if any problems arise, you can always go to court. As practice shows, the vast majority of litigations were won by insurers, since the judiciary prefers to take the position of ordinary citizens. But whatever it is, never give up. If you know that you are right and the law is on your side, then always contact the relevant organizations for money.compensation.