One of the extras is paid by Russians when taking out credit insurance. It reduces the risk of no funds being returned. If certain circumstances occur during the term of the contract, the bank receives money from the insurance company.
However, loans, particularly consumer loans, are mostly repaid early. It turns out that there is no need for an additional service. Is the insurance repaid after the loan has been repaid to the borrower in this case? Yes, but not completely.
A little bit of history
The Bureau of the Supreme Arbitration Court passed a resolution in 2009 that bank credit commissions were measures that violate consumer rights. In the following years, hundreds of cases of returning illegally paid amounts were considered. Banks had to cancel the commission, which was an important source of income. Then they quickly found an alternative – they increased the use rates of the funds.
After the federal law on consumer credit came into force, a new problem arose: the introduction of insurance contracts for lending. Customers started to file claims and complained about:
- the fact that banks have imposed an unnecessary agreement for fear of refusing to grant a loan;
- the high cost of insurance services;
- This refusal to repay funds for additional services was originally prescribed in the loan agreement.
On the one hand, banks increase commissions and on the other hand, customers do not know their rights. Fearing to refuse a loan, they conclude additional contracts and consider how the insurance can be returned after the loan is paid out.
Who needs it?
There is a need for insurance. Banks receive additional collateral in an emergency. When an insured event occurs, the company transfers a certain amount to the credit institution to repay the loan. If it exceeds the remaining amount, the difference is paid to the debtor (theoretically).
If the amount of compensation is insufficient to cover the debt, the bank will look for ways to withhold money from the customer. The most common insurance is the risk of death, the acquisition of disability groups 1, 2. If the property is real estate, compensation is given for the illegal acts of others, water damage, fire, natural disasters, natural events, vehicle theft or accident.
According to Article 421 of the Civil Code of the Russian Federation, natural and legal persons can conclude contracts. That is, the bank has no right to impose a loan on its customers to receive a service. At the same time, the law establishes situations when the loan is not granted without the client’s life insurance. We’re talking about taking out a mortgage and buying a car. When the contract is signed, payments are regular, a logical question: once to repay the loan if I have the right to return the insurance?
The bank is the beneficiary of such transactions. If the loan is repaid in full, the customer has the right to terminate the insurance contract as the property becomes his property. The bank is obliged to recalculate and transfer the remaining amount. The insurer is entitled to part of the fee.
Your amount is proportional to the duration of the contract. Whoever paid the loan has the right to return the insurance. But on the condition that the loan was paid early. That means returning an insurance policy in time after repayment of the loan does not work. The process depends on what type of loan has been issued: consumer or collateral. In the first case, the lifetime of the customer is insured and in the second mortgage.
Ways to save
Banks are therefore not allowed to impose insurance on loans, except in the cases specified by law. In this case, try not to include the cost of the service in the total loan amount. Otherwise, interest will also be charged. Whoever paid the loan has the right to return the insurance. This can be done in such situations.
In the event of a positive decision, early repayment of the loan can be made. This option is described in detail below. Costs only to note that the money is not automatically returned. You need to contact a bank branch, write an application, collect copies of documents, and then wait for a decision.
How do I get insurance for a loan? The customer may have an illness where the conclusion of a contract is prohibited by law. The list of exceptions is included in the contract itself. Before he signs medical examination documents, however, he does not issue them. The customer simply cannot be aware of such an exception and pay the cost of the service. You can order a recalculation and compensate for the money paid. But even in this case, the customer does not receive the full amount, but 87% (including the tax of 13%).