Compared to many Western countries, insurance in Russia is not a very popular phenomenon. If the procedure is optional, like a policy VHI, citizens try from her refuse.
Today's speech will go about such a thing as a collective insurance contract. How does he happen? What are the prospects and is it worth it to give up? Let's try to figure it out.
What is collective insurance?
Packet policies are a special form of insurance and are used to protect not a single person, but a whole group of people from possible unpleasant situations. A collective accident insurance agreement treats everyone who is in it includedas a whole, not separate elements. Other group agreements apply in a similar manner.
In general practice, collective insurance contracts are concluded at the expense of the employer. The company is accepted as the insured, and each of its employees is the protected person. In this case, there will be only one policy, and in addition to it, the passport data of all participants are entered.
By the way, if the insured assumes that in the future other participants may join the program, a collective life insurance contract (or something still) may be concluded and with one person.
Types of Group Insurance
Most common banking practice involves the following types of agreements:
- collective insurance contract borrowers;
- slow payment of capital;
- rent for widowhood, orphanage or in case of disability;
- collective agreement temporary disability insurance;
- insurance against fraud;
- protection from the actions of third parties that could cause any harm;
- other contracts.
Who benefits from corporate insurance programs?
The collective insurance contract for employees is a rather profitable measure for employees of any company. It is a financial guarantee in case of complex everyday situations.
Group health insurance provides benefits to employees in the event of a deterioration in well-being.
Corporate pension insurance is a pretty strong incentive for employees who expect substantial compensation when they go on a well-deserved vacation.
A cumulative collective insurance agreement offers twofold benefits. At the end of the insurance period, the employee receives the full amount due as a bonus. And if the insured person did not live to see the end of the policy, the money can be received by his relatives.
Businesses also receive certain benefit from the conclusion of a collective insurance contract. Moreover gesheft is manifested not only in the image sphere. Organizations have a tangible social as well as financial advantage:
- Some tax benefits.
- Accumulation of additional funds in cases where the employee leaves before the expiration of the policy.
- Some organizations conclude collective agreements on a parity basis. At the same time, contributions are made for score both employee and organization.
- Additional motivation for mobilizing highly qualified personnel at the enterprise.
Corporate Insurance Members
The persons involved in the insurance procedure include:
- Insurer - an organization licensed to provide such services.
- Policyholder - a person or company representing the interests of all insured persons and entitled to endorse an agreement with SC. In the absence of a specific person, eg Director of the enterprise, the insured is determined by a simple vote among a group of insured citizens. He is vested with the right to sign and resolves all issues related to the settlement of the transaction.
- Beneficiary - the person in whose favor the payment in the insurance situation will be assigned. They may be the policyholder, policy holder, insured person, heirs under the law or existing will, successors.
Group insurance policies
In the banking sector, collective policies are also widespread. Collective insurance agreement "VTB 24" or another bank offers to conclude when issuing a credit card or obtaining a small loan.
The agreement is confirmed by a policy issued in the name of the financial institution (creditor). He also acts as the initiator of the procedure. The insurance company receives an insurance amount from a banking institution in exchange for an obligation to indemnify inflicted health or customer life financial institutions (the borrower).
Unlike personal insurance, in this case the policy is received not by the client, but by the bank. The borrower join the contract and receives a special certificate in their hands confirming his participation in the process. A person who wants to get a loan in this case does not participate in the choice of the insurance company and cannot affect the conditions specified in the policy. He needs to either accept the proposed conditions, or issue a written refusal of insurance.
Policy expiration usually is equal to loan term. Such insurance covers the risks of non-payment of debt remaining on the date of the insured event.
It should be borne in mind that applicants for a loan who refused to apply for a policy most often receive a refusal to issue money. By law, a bank does not have the right to refuse loan for this reason, so the manager is most likely will refer for any other circumstances.
Quite often, with the consent of the client to obtain additional insurance, the bank may slightly reduce the interest rate. But this condition is also not required.
Documents
To prepare a package risk insurance contract, a statement should be prepared. It contains the following data:
- type of group policy;
- amount (total) under a collective insurance contract;
- tariff and insurance premium;
- method, type and regularity of insurance premium payment;
- type, method and terms of receiving insurance compensation;
- special guarantees;
- terms of the contract;
- other important conditions;
- date of entry into force of the document.
The bank manager prepares the necessary information and feeds statement to the UK. A feature of such a policy is that its term most often does not exceed 1 year. To the list of persons included the composition of the insured may be made borrowerswho have not reached retirement age.
How to opt out of package loan insurance
A group insurance contract is very beneficial for a bank. First of all, it significantly reduces the risk of defaults. BUT Secondly, paperwork is minimized. After all, all relations are built between financial institution and SK, and the borrower in them, as it were, does not participate. So a similar scheme is used by almost all banking institutions.
And such a situation is not so beneficial for the client. On the one hand, the person seems to be protected from the fact that he will not be able to repay the loan on time due to illness and the debt will hang on him with a stone. But on the other hand, additional insurance can significantly increase the cost of a loan.
Many banks use the situation for their own purposes and simply force them to issue a policy. Moreover, few managers inform the client that, by law, he can terminate the insurance contract for 5 working days after signing, unless, of course, this is expressly prohibited by the loan agreement.
So, the collective insurance agreement in VTB 24 can be terminated within the statutory deadlines. In principle, this can be done at any time. Insurance fee ceases be charged from the month following the date of application to the UK. Of course already made means no one will returnbut the fact that you can change your mind at any time is encouraging.
Group agreement SRO
Today, many self-regulatory organizations accept as internal orders SRO - collective insurance contract. Now these organizations themselves insure their members, as well as a compensation fund. For construction companies - members of self-regulatory organizations, this fact is very positive.
Pros and Cons of SRO
What good do members of self-regulatory organizations find in such agreements? First of all, this is practically the only way to quickly fulfill their obligations even in the event of a major loss. The phenomenon has become so commonthat SK even plan to launch a new product on the market - SRO liability insurance policy. In the meantime, his functions are fulfilled by the contract.
Well, among other things, such a policy is very profitable financially. We give a small example:
- Inexpensive insurance for an individual builder costs about 6 thousand rubles. Moreover, the maximum payout will not exceed 2.3-2.5 million.
- If a 10 Since the participants will send all these funds to the general fund, the total amount of reserve capital will be at the level of 23-25 million rubles.
- Double insurance group insurance (50 million) will cost about 30 thousand. At the same time, each of the participants will spend an amount half as much as with individual insurance (about 3 thousand rubles).
Thus, it is not difficult to calculate that when drawing up a collective insurance contract, the SRO receives a much larger “protective” fund.
Of course, such insurance has its drawbacks. For example, each individual partner cannot independently choose an insurance company, but is forced to join to an existing contract. Since such insurance in the market is quite new, insurance institutions are not too loyal to groups in which there are less than 10 companies.