When lending, most banks insure their risks by imposing insurance contracts on borrowers. This increases the cost of the loan and leads to additional expenses for the client. In some cases, borrowers themselves want to insure against risks if they suddenly cannot repay debts on time. Then the wishes of the client and the bank coincide. But with early repayment of the loan, most borrowers think that it would be necessary to return part of the money spent on paying for insurance. Moreover, the desire is reasonable if the insurance was expensive, and the loan was repaid not in 5-10 years, but in 1-2 years.

Why pay for insurance when applying for a loan

Taking out insurance when issuing a loan is a common practice. In this way, the bank reduces its risks in case the borrower stops paying due to injury, disability, loses his job or dies. In the event of an insured event, the insurance company will start making payments on the loan.

Most of the insurances are voluntary insurance. Therefore, the borrower can refuse to pay for the policies when receiving a loan. But then the bank has the right to raise the interest rate.

With some types of insurance, the amount of the insurance payment is directly debited from the borrower's account in favor of the insurance company. As a result, the client gets on hand less than he requested. In fact, it turns out that the borrower pays for the policy from his own loan money. In other situations, a separate insurance contract is drawn up between the insurer and the borrower.

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Credit insurance is mandatory only in two cases:

1. When applying for a car loan. The insurance object is a car. The borrower is obliged to pay not only for OSAGO, but also for comprehensive insurance.
2. When applying for a mortgage. The insurance object is real estate that the borrower buys.

In total, the amount of insurance is approximately equal to the amount of the loan. In some cases, it is slightly less. The duration of the insurance, as a rule, is equal to the term of the loan agreement. But it can be shorter or, in rare cases, longer than the loan period.

Is it possible to return the money at all

To date, article 958 of the Civil Code of the Russian Federation states that in case of early cancellation of the insurance contract by the beneficiary or the insured person, the premium paid to the insurer is not refundable, unless otherwise specified in the contract. That is, the insurance company may legally refuse to return payments. Therefore, if the text of the insurance contract says that the insurer will not return the money in case of early repayment of the loan, no court will help in resolving this issue.

If there is no direct indication of the refusal to pay in the text of the insurance contract, you can try to return part of the amount already paid to the insurer. Sometimes there are wordings that only part of the insurance premium will be refunded, minus administrative costs. Please note that such amounts can go up to 90-95%. In this case, it is rather difficult to count on a return of more than 5-10%; the intervention of an experienced lawyer will be required.

From September 2020, the position of borrowers who repay the loan ahead of schedule will change . But it will only apply to those contractual relationships that arise after 09/01/2020. The borrower will be legally entitled to claim insurance premiums under consumer contracts when the loan is repaid early. Compensation for part of the payment for the unexpired period can be received within 7 working days:

• after the final repayment of the loan;
• after applying for a return to the insurance company.
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• Today, any insurance company has the right to receive insurance payments in proportion to the insurance period. Therefore, the borrower can only claim the amount when the insured risks have been excluded. The period after the early repayment of the loan falls under these rules. Unless the return of compensation is expressly prohibited by the insurance contract. According to article 958 of the Civil Code of the Russian Federation, the insurance contract is terminated before the expiration of the term, if the occurrence of the insured event is impossible, and the insured risks have ended due to circumstances that have nothing to do with the occurrence of the insured event. This is the early repayment of the loan, if the agreements were interconnected.

How to get back a part of the amount from the insurance payment

You can return the money spent on paying for insurance in two cases: during the cooling period or in case of early repayment of the loan. Before applying for a refund, carefully study the text of the document. It should describe the return procedure. In fact, you should study the text of the insurance contract even before signing it.

Some insurance companies are so vague about the conditions that it can be difficult to obtain compensation from them even through a court. Then it will be too late to blame the bank or insurance company, because when applying for a loan and paying for the policy, the borrower voluntarily agrees to the established rules. It is almost impossible to prove that the insurance was imposed by force.

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The very first thing a borrower should pay attention to is that the insurance policy is directly related to lending. If this is a separate policy, for example, for accident insurance, which does not depend on the term of the loan, the insurer will refuse to compensate for part of the paid insurance without the occurrence of an insured event.

Cooling period

The easiest refund of the cost paid for the insurance policy is possible during the cooling period - 14 days after signing the contract. In some companies, the period may be longer than 21 days, 25 or even 30 days, but 14 days is the legal minimum. If you manage to repay the loan ahead of schedule for this period, the insurance company is obliged to return the money without any problems. To do this, write an application to the insurance company and indicate the details of the account where to return the amount.

If the loan is not repaid, and the refusal of insurance is recorded, the bank may increase the interest rate.

Early loan repayment

Check in advance the relationship between the insurance policy and the loan. In some cases, part of the insurance premium can be returned only with a direct indication in the contract. For example, a clause may be introduced that in case of early repayment of the loan, the insurer undertakes to return part of the funds due to the termination of the insured risk. If there is no clear relationship between the policy and the loan, the insurance company has the right not to return anything, and this will not be a violation of the law.

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Instructions for returning part of the insurance payment in case of early repayment of the loan looks like this:

1. Write an application to the bank for early repayment of the loan. Deposit the amount into the account, taking into account all interest that will be calculated by the next maturity date. If you do not write an application or notify the bank about early repayment in any other way specified in the agreement, only the amount of the next payment will be debited from the account.
2. Ask the bank for a document confirming the repayment of the loan. Attach it to your claim with your insurance company. State the reasons why the insurer is obliged to return part of the payment. Motivate with specific clauses of the insurance contract, where the compensation procedure was indicated.

If the insurance company agrees with the arguments, the money will be credited to the account within 10 working days.

The most difficult thing to recover insurance is when the borrower is attached to a collective insurance agreement. In this case, the second party to the contract is not an individual, but the bank for which the insurance policy is issued.

Where to apply for a refund

For the return of the insurance premium after early repayment of the loan, you should contact not the bank, but the insurance company. You will need to present:

• a copy of the loan agreement;
• passport;
• a certificate confirming the repayment of the loan and the absence of debts to the bank;
• a copy of receipts for payment under the insurance contract;
• additional agreements to the insurance contract, if any;
• copies of checks or receipts confirming the payment of the loan;
• a statement that formulates the reasons why the insurer must return part of the money paid for the insurance policy.

• Remove photocopies from all papers. It is especially important to keep the originals if the application is sent by mail or courier, and not by personal contact. They will come in handy in case of litigation.

  Please note that before resolving the issue with the return of part of the amount for the insurance, do not terminate the insurance contract. Otherwise, it will be almost impossible to get compensation from the insurer.

  You can write an application to the bank for the return of insurance only if the insurer company is a subsidiary of the bank, or the insurance was included in the basic package of services for the loan. But in any case, you should write a statement to the insurance company too. If the insurer denies compensation, all written responses should be retained. They can be useful when contacting the Central Bank, Rospotrebnadzor or the court.

  What the court practice says

  It is not uncommon for insurance companies to refuse to pay part of the money for insurance in case of early loan repayment. Therefore, the jurisprudence in this area is so wide. It is quite difficult to say unequivocally which side the court will take. It so happens that local courts make one decision, but when submitting an appeal to the Supreme Court, it takes a different position.

  Insurance companies are adept at drafting contracts, which is why there are so many discrepancies and interpretations. It is not easy to do without the help of a qualified lawyer. Therefore, experts recommend getting advice on the wording of a loan and insurance agreement in advance, before signing them. This will save you time and money. It is especially important to do this if the potential borrower is sure in advance that he will repay the loan ahead of schedule. If we are talking about a large loan amount, this approach will help save hundreds of thousands of rubles.

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• When insurance will be returned, and when not

  You can not get money back for any insurance. In case of early repayment of the loan, you can count on insurance compensation:

  • life and health - the insured events include death, illness, injury or injury that occurred during the period of validity of the loan agreement, if we are talking about comprehensive insurance, and not about a separate insurance policy not related to the loan;
  • from job loss - only if the borrower lost his job not on his own initiative - the insurance will take effect in case of staff reduction, liquidation of the enterprise;
  • from the loss of rights to real estate - title insurance for a mortgage;
  • financial risks if they are associated with the inability to repay the loan;
  • real estate, as well as OSAGO.

  It is impossible to return part of the insurance premium when taking out insurance for a car for car loans and for real estate for mortgage loans.

  Also, they will not refund money for insurance if an insured event occurs. The insurance company will pay the insurance premium, but do not compensate for part of the payments that the client made.