Every time we apply for a loan, you have to hear such a phrase as insurance. Moreover, without it, there is more chance of being refused than approval. Thus, borrowers are forced to pay insurance to get a loan.
If you need to early repay the entire amount of debt, you can return the insurance. Not every borrower knows this. We will talk about how to return insurance for a loan in this article.
The insurance contract is valid for the entire loan period. If the loan is paid ahead of schedule, respectively, and this contract is terminated. But is it possible to return credit insurance? Is everything always done in favor of the client?
What types of premiums exist?
Just a few years ago, insurance premiums were included in monthly payments. In the graph, they were reflected in a separate column. When the situation arose that the borrower needed early repayment, then the contributions were not refundable, but the subsequent payments were not required.
Today, insurance is mainly carried out "on credit", that is, payment is charged once upon receipt of a loan. For example, a client took 150 thousand rubles. In this case, the contract is drawn up for 170 thousand, 20 of which go immediately to the insurance company. The interest rate will also be calculated at 170, not 150 thousand. When it becomes necessary to return insurance after repayment of the loan, the full amount to be paid will also be announced. Only after the amount has been paid, proceed to resolve the issue of whether it is possible to return the insurance on the loan.
Ways to terminate the insurance contract
If the loan agreement is designed in such a way that insurance is charged monthly, then you will not be able to return the insurance after repaying the loan. Therefore, demanding a refund makes no sense.
If insurance is included in the loan itself, then there are several ways to arrange a return.
- Full return. The entire amount of insurance is returned to the client without commissions and costs.
- Partial return. Only part of the funds is returned, depending on the period of use of the services.
Therefore, problems with how to return insurance after paying off the loan should not arise. In any of these cases, it will be paid.
But there is one caveat. Insurance takes its commission for doing business. As a rule, this amount is half or a little more of the contribution paid. If you believe that the calculation was not made correctly, then be sure to ask that you be presented with a detailed transcript and the rates at which the calculations were made. If the calculations are significantly overestimated or their tariffs do not correspond to the declared tariffs, it is best to file a lawsuit with the court.
3. Termination of the contract without insurance refund. In general, the one who paid the loan has the right to return insurance. But there are situations when a refund is not made.
This happens when the clause is specified in the contract that upon early closure of the loan, the insurance company is not liable for the return of funds. If the client puts his signature, then he completely agrees with this and accepts the conditions. As practice shows, it’s not worth going to the court with such agreements, because nothing will be achieved anyway. If the insurance contract does not stipulate such a situation, then the refusal is unreasonable. Therefore, you can safely go to court or Rospotrebnadzor.
How does the insurance company know about the intention to terminate the contract?
If you wish to repay the loan in advance for insurance issued on credit, the company can be notified in two ways.
- Insurance is issued at the bank, which means that you can also inform about the intention to terminate the contract in the same way. But very often it happens that applications are not accepted, and employees offer to contact the insurer themselves.
- If you have a company office in the city where the insurance was issued, it is best to go there yourself. Thus, you will independently submit a return application and will be able to ask all your questions. If there is no office, then you can send a letter by mail. It is better to ask the letter to come with a notification, so you can find out that your request has been received and accepted.
What should everyone know about credit insurance?
Always remember that insurance is voluntary. It should not affect the decision to grant a loan and the amount. The only exception is mortgage and car loans, where insurance is provided by law. In addition, banks offer insurance for lower interest rates. But these conditions are necessarily prescribed in the contract, and the final decision is made by the client himself. If an employee says that insurance is a necessary measure, then ask to show the corresponding clause in the contract.
Think carefully about whether you really need insurance. If you do not need such protection, then you should not draw it up so as not to suffer from the question of whether it is possible to return insurance on credit. Also, do not do this if you know that you repay the loan earlier.
What should I clarify before applying for insurance?
When deciding to still take out insurance, be sure to check whether it is possible to pay for it yourself. So you do not have to pay too much.
You should also clarify how to return insurance after paying the loan. Ask to emphasize such clauses in the contract.
In no case do not put a signature on the contract if something does not suit you, because if problems arise, it will all turn against you.
Why do banks need insurance?
Bank credit insurance is necessary for your own safety. Suddenly you do not want to pay a loan? In this case, the insurance company will indemnify.
According to the law, insurance is carried out only with the consent of the borrower, if it is not about collateral.
Most banks impose this service and force customers to conclude such an agreement. But with the acquisition of real estate or transport, it will be beneficial to both parties.
In the event of unexpected situations (damage or destruction of the house) the entire debt is repaid by the insurance company. But, as practice shows, the design of such a policy is an inappropriate and expensive action.
If the borrower is sure that he will need early repayment of a loan, then with insurance he will lose a significant amount.
It makes sense to agree to conclude an agreement when a loan is taken for a long time and a loss of solvency is possible. For example, dismissal from work or reduction.
This case will be considered insurance, and then the insurance company will compensate the bank for the funds.
What features does the insurance contract have?
Very often, when issuing a loan, the borrower has to pay various commissions, for which the employees of the organization are silent for some reason. The same payments include insurance payments.
Many borrowers are interested in the question: will insurance be returned after repayment of the loan? As a rule, this is done by applying in writing to a bank or insurance company. If the organization refuses to return the funds, then a lawsuit is filed in court.
Before signing an insurance contract, its terms and conditions must be carefully studied.It should indicate the amount of insurance, as well as describe the procedure for return in different situations and the conditions for termination.
Who paid the loan, has the right to return the insurance, as well as put forward their conditions, which they are obliged to fulfill.
The subject of this agreement may be:
- life and health of the borrower;
- real estate that is purchased in a mortgage;
- vehicles purchased by car loans.
These types of insurance allow you to repay debts in the event of an insurance situation.
Is it possible to return the loan insurance if it has been paid?
In case of full early repayment of the loan, the insurance contract is still valid. You can make a refund paid to the insurance company for the time that has not yet passed.
As a rule, employees make calculations and return funds. But sometimes there are denials of payment. Then you need to go to court.
In court after repayment of the loan, insurance can only be returned by decision. Moreover, all costs are paid by the company.
In some cases, the terms of the contract suggest that the policy is paid once a year. Then, when the question arises of whether you have the right to return insurance, you can simply suspend payments.
In the absence of special conditions, it is automatically terminated. In this situation, there will be no return of insurance, but only the termination of obligations.
What amounts are refunded?
When you were wondering how to return Sberbank loan insurance, first study the contract. Often, the insurance company, agreeing to terminate the contract, seeks to return a smaller part of the amount. This is done by including in it their expenses.
Certain methods for calculating the amount that provides for the return of insurance are not specified by law.
In the event of early repayment, only the provision will be allowed to withhold funds for the costs of servicing the contract.
If you need to figure out how to return insurance for a loan, as well as make sure that the calculation of the amount is correct, you should ask for cost calculations, the basis of which is the agency fee for contract maintenance.
How to return insurance for a loan if they refuse to pay?
Sometimes there are situations when a company refuses to return insurance. Why it happens?
- You missed the deadline when you could apply. It is filed within a month from the moment the insured event occurs, unless otherwise specified in the contract. If you do not have the opportunity to write a paper, be sure to let the company employee know and write down his data.
- The application for insurance refund does not contain the necessary data: number, contract date, data of the insured person, as well as the conditions and circumstances under which the insured event occurred.
- There are no documents confirming the fact of an accident. Documents vary depending on the situation. If disability occurs, then a medical certificate is attached. In case of death, a certificate from the registry office is submitted.
Conclusion
Before signing the contract, be sure to study all the terms and conditions. It is also worthwhile to include in it such an item as the possibility of termination, and add the conditions of return. In such a situation, you do not have to worry about the question of how to return insurance on a loan from Sberbank or another institution.
Such an agreement should be concluded only when obtaining a long-term loan, that is, if you are not sure that you will close the loan earlier.
If you paid the debt in advance, then be sure to write a statement and request to return the balance of the amount paid.
When an insured event occurs, prepare all the documents and submit them to the insurance company.
If the company has not returned the full amount, then write a claim that you do not agree. If a positive answer does not follow, then you can complain to the court or the insurance supervision service.
