How to get your loan insurance back

Is it obligatory to pay for insurance when receiving a loan

By law, it is imperative to insure only property pledged under a mortgage agreement. It can be real estate bought with credit money, or any other. It is only important that it acts as a guarantor of the return of money to the bank.

It is the object itself that is insured against various damages. If the borrower does not do this, the bank can independently issue a policy, and then assign the costs to the client. Such actions are legal, so it is better to pay for the insurance yourself. It is unlikely that the bank will look for favorable rates.

All other types of insurance are voluntary. This does not mean that they are useless. With a policy, for example, you can sometimes get a lower interest rate. Nevertheless, the decision is always left to the client. The bank employee must explain that the service can be refused.

How to get your loan insurance back

There are two options when you can return all or part of the costs of the policy:

Refuse insurance when for some reason you bought it and then changed your mind.
Return part of the cost of the policy if you issued it for the entire term of the loan, but repaid the debt ahead of schedule. In this case, it turns out that part of the money was wasted, because the loan is no longer there.

Let's deal with each of them.

How to cancel insurance

It happens that a bank employee is not honest enough with a client and draws up a policy as mandatory. Or a loan is not issued without insurance. Or the borrower simply inattentively signed the documents. Cases are different, but the situation is not hopeless.

The client has 14 days to change his mind. This is the so-called cooling period. It was introduced precisely because people often found themselves with insurance issued without their knowledge or under pressure from a manager. And so they have two weeks left to come to their senses and issue a refund.

If you have such a need, contact the insurance company. You must present:

a free-form statement of intention to refuse insurance, in the paper you must indicate the method of receiving money and the details where to transfer them, if you chose non-cash;
a copy of the policy;
copy of your passport;
a copy of the insurance payment receipt.

It is better to submit the application so that you have the opportunity to later confirm the fact of the appeal. If you take the document in person, print it in duplicate. You will give one of them, and on the second, demand to put a stamp of acceptance with a date. Or you can send the papers by registered mail with a list of attachments.

The insurer must return the money within 10 days. If the contract was already in force, the cost of the policy for these days will be deducted from the amount. In case of obstacles from the insurance company, promptly complain to Rospotrebnadzor or the Central Bank.

How to recover part of the cost of the policy in case of early repayment of insurance

Much depends on when the contract was concluded - before August 31, 2020 or after. If after, then everything will be very simple. The insurer is obliged to return the money for the policy for those months of validity when the loan has already been repaid.

To return part of the funds, submit in the insurance application, copies of your passport, policy and payment receipt - everything is the same as in the previous paragraph. This will work if the insurance is voluntary, was issued upon receipt of the loan and there were no insurance payments. The money must be returned within seven days.

If the policy is issued before August 31, 2020, the insurance company does not have such obligations. But if the insurance compensation is tied to the amount of the loan, then the contract is terminated when the debt is repaid. In this case, the situation is not hopeless. You can try to return the money for the remaining days.

First, apply to the insurance company as described earlier. If payments are refused, the next step will depend on the amount. If less than 500 thousand rubles are supposed to be returned, you first need to contact the financial representative, if he does not help, then to the court. With a sum of more than 500 thousand, you can go directly to court.