Quite often, the main condition for concluding a loan agreement with a bank is the purchase of an insurance product along with the loan. This could be life and health insurance for the person entering into a loan agreement, insurance against job loss, or property insurance for mortgage lending and car loans. The insurance procedure for the period of full repayment of the loan is necessary and beneficial for banks. By doing this, they reduce their risks from borrowers’ non-payment of funds.
Payment procedure: options for development of events
If the client voluntarily agrees to repay the loan, the beneficiary in the event of an insured event is the creditor bank. In any case, the client is not obliged to take out insurance from the insurer specified by the bank. The client himself has the right.
Other insurance products, for example, housing when receiving a car loan, are mandatory (Article No. 343 of the Civil Code) and may even be beneficial to the borrower. If suddenly there is destruction (complete or partial) of a building taken on a mortgage, or a car purchased on credit, then the insurance will fully cover the debt to the bank.
According to the current legislation of the Russian Federation, a bank client is not required to insure his life and health! This is a purely voluntary action. This right is enshrined in Article No. 935 of the Civil Code of the Russian Federation.
When drawing up a loan agreement, an insurance agreement is also concluded.
There are two options:
- the client is forced (under threat of denial of credit) buy any insurance product.
- the client purchases the policy voluntarily and consciously. But in any case, if the client wants it after some time, he can submit a corresponding written application to the bank (or insurance company).
A written statement (pre-trial claim) must express a desire to terminate the insurance contract and a request for the return of the insurance premium. The claim must be made in 2 copies and one must be handed over to the bank (or insurance company) against signature on the client’s copy.
There are 2 types of consumer loans:
- loan without collateral,
- loan secured by property.
A loan secured by property is most often concluded against this property. It could be real estate, a car, jewelry, etc. This measure is completely justified and is specified in the loan agreement. Banks try to “encumber” a consumer loan without collateral with other types of insurance: health and life, against job loss, etc. The client can refuse these types of insurance, or he can use them.
By law, the borrower can refuse an already concluded insurance contract. If this decision is made no later than a month after signing the agreement, then he must be returned the amount paid under this agreement in 100% of the amount. If the decision is made later than this period, the refund will be made in accordance with the conditions specified in the insurance contract.
Repayment upon early repayment of the loan
If the loan is repaid ahead of schedule and the expiration date of the insurance contract has not yet arrived, the client must submit and return the remaining funds. The application should be submitted to the bank if insurance was included in the package of lending services, or directly to the insurance company - in other cases. The insurer, having considered the application, must make a calculation: from the total amount previously paid, subtract the funds attributable to the time of payment for servicing the insurance contract. The insurer must pay the remaining funds to the client.
More details about early termination of an insurance contract are stated in Article No. 958 of the Civil Code of the Russian Federation. Here, in addition to the borrower’s right to early termination of the contract, the insurer’s right not to return the balance of the insured amount is also stated.
In this case, only the help of an experienced lawyer can help resolve the problem in favor of the client. The specialist can refer to the standard wording in all loan agreements stating that the insurance contract applies to the entire loan repayment period. If the loan is repaid early, the term of the loan agreement also ends.
- Accordingly, the period must also end.
- Documents that must be provided to the insurer to pay the balance of funds upon early repayment of the loan:
- passport;
- a copy of the loan agreement;
An alternative option for early repayment of the loan is to change the beneficiary of the insurance, that is, re-register the documents for yourself or relatives. In this case, the insurance contract continues until the end of the previously planned period.
It happens that an insurance contract concluded to obtain a bank loan, and then paid off ahead of schedule, does not provide for a one-time payment of the insurance amount, but periodic (for example, monthly). In this case, as an option, you can consider deliberate non-payment of monthly insurance premiums. In this case, the insurer will terminate the contract automatically. But, before deciding to take such a step, you must carefully re-read the insurance contract. After all, it may contain fines and penalties for late or non-payment of contributions. Therefore, the best option is to submit an application to the insurance company. From the day following the day of submission of the application, monthly contributions may not be paid legally.
If the client wishes to return the insurance amounts paid, regardless of the type of lending, he should contact a lawyer for advice on a specific situation.
He will assess all possible risks and potential benefits from the planned activities. And only then can we engage in pre-trial settlement of the disputed issue, and if there is no result, then proceed with the trial method.
Termination of an insurance contract for a loan, video consultation with a specialist
Recently, legislative amendments to the article of the civil code “On consumer credit” were adopted, which made insurance mandatory when taking out mortgage loans. Without signing this agreement, the borrower simply will not receive a mortgage.
But the question remains: how to get the money back for insurance remains open. According to the logic of things, which is followed by many clients of banking institutions, insurance premiums were made on time, but no insured event occurred. Has the money gone to waste?
Since both insurers and bankers are silent about this, borrowers often miss the chance to timely demand a refund of the amount of premiums paid under the insurance contract. And even more so, they don’t know whether the insurance can be returned after the mortgage is paid off.
Is it possible to return the insurance if paid early? It is possible if a closed mortgage terminates the relationship between the client and the bank, while the agreement with the insurance company continues to be valid. At this point, the client can apply for a refund of insurance upon early repayment of the mortgage and take advantage of the opportunity to return the funds paid.
Payments after repayment of the mortgage: insurance and tax deduction
Now let's talk about how to get your insurance back after paying off your mortgage and in what cases it is possible to get money from the insurance company.
To begin with, you need to know exactly what risks the client was insured against when taking out a mortgage loan.
Typically, banks offer to insure the risk of loss of ownership or damage to the property for the entire term of the mortgage loan. Banks are actively offering additional options, such as:
- risk of loss of life;
- risk of disability;
- risk of job loss.
Agreements under them are concluded for a period of no more than 3 years, and are regularly renewed. Payment for insurance services is made once a year. If the mortgage was closed ahead of schedule, and the agreement continues to be valid, it remains possible to return the funds.
The borrower needs to carefully study the contract with the insurance company to clarify its validity period. Based on this data, it will be clear whether an insurance refund is possible in his case. Difficulties often arise when trying to return money for insuring an object, while for additional options returns are made more often.
Also, after paying off the mortgage, the client can return the money using a tax deduction. This method is only suitable for citizens paying taxes in form 2-NDFL (employed).
Refunds are made in the amount of 13% of the amount of interest paid on the loan, this amount should not exceed 3,000,000 rubles. It also includes paid insurance premiums.
IMPORTANT! You do not need to close your mortgage loan early to receive a tax deduction.
These are the two options that a person can count on if he has paid off his mortgage.
Refund Terms
So you paid off your mortgage early and now want your insurance back.
To do this, you will need to prepare a number of documents and go with them to your insurance company.
I would like to immediately note that in most cases, insurers really do not like to pay out money, and you may need to contact lawyers specializing in these issues.
So, your actions:
- carefully read the contract with the insurance company, make sure that there is no clause in it about the impossibility of returning funds in case of early termination;
- prepare a package of documents, including: an agreement with the insurance company, a mortgage agreement, a notice from the bank about full early repayment of the loan, receipts confirming payment of insurance premiums, an application in the established form;
- go to the insurance company office and submit all the documents along with the application (it is advisable not to delay this issue too much after the mortgage is closed!);
- wait for the decision; in case of an unjustified refusal to return the money, go to court or contact a lawyer.
To obtain a tax deduction, the procedure will be slightly different. Firstly, this type of application is accepted by the Federal Tax Service only at the end of the reporting period (end of the year). Secondly, only from employed citizens, as mentioned above.
You can find out the list of documents on the website of your tax service or by contacting the branch.
How to proceed – on your own or through lawyers?
The most pressing question for those who are going to return the money paid towards insurance is how to return mortgage insurance? On your own, or contact specialized law firms?
In fact, the second option is more optimal - especially if the amount of insurance payments was considerable. You just need to choose an office with extensive experience in this field and good reviews.
The disadvantage is that lawyers will have to be paid for their work. But if you are not a guru of interaction with insurers, and feel unsure about writing statements, claims and lawsuits, then it is better to act through an intermediary.
One in three Russians manage to pay back their mortgage insurance on their own, and most often difficulties arise due to ignorance of the laws and lack of practice in communicating with the insurance company.
Let’s not hide it, it’s usually difficult to get any payments from insurers.
If you still want to act on your own, you should carefully study the insurance contract and legislation regarding the procedure for the return of insurance premiums and the general operating procedure of companies providing these services.
As you can see, the procedure for returning insurance after paying off a mortgage has quite a few nuances and often requires the intervention of experienced lawyers, but it is quite possible. Especially if a significant amount of money is at stake.
Therefore, it makes sense not to delay contacting the insurance company if you have recently closed your loan ahead of schedule. As they say: “Time is money.” In this case, it’s your money.
So, it is a fairly common procedure for a consumer to apply to a banking institution to obtain a loan and draw up a loan agreement, and the borrower’s insurance is necessarily offered. Basically, this service is imposed “forcibly”, otherwise the consultant assures that the chances of receiving the required loan amount are significantly reduced.
Basically, each borrower agrees to the registration and signs, most often without even reading the agreement to the end.
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A standard agreement includes payment for connecting such insurance for 10-30% of the consumer’s loan amount.
So, when you receive 100,000 rubles of credit funds, another 20,000 of insurance is added on top. This means that you can only use one hundred thousand, and interest will need to be paid for 120 thousand rubles.
In addition, the financial institution becomes the beneficiary in such a situation, which means that if an accident occurs, all the money will go to the bank. So, it is worth taking into account the fact that a larger percentage of the mortgage insurance amount is the bank’s net profit.
That is why today many are trying in every possible way to refuse to sign such insurance or try to terminate the contract.
Unfortunately, there are many cases where, upon termination of an official document, only part of the money was subject to return, which was calculated based on the actual period of use of the mortgage loan agreement.
Even when filing a lawsuit, a representative of a financial institution will defend its interests to the end, arguing its position by the fact that the borrower’s signature is on the agreement and he personally asked to connect him to such a service. After all, if there is a signature, it means the bank client has read the document, calculated everything, agrees with everything and has no complaints against the bank.
In no case should you lose sight of such a concept as the statute of limitations, because if more than 3 years have passed since the signing of the mortgage insurance, it is almost impossible to return the funds, even through the court.
How can I get my mortgage insurance back?
It is possible to receive a full payment under mortgage insurance only if you have not yet used it.
Thus, this is possible provided that the loan is repaid once, during the first month of the loan term stipulated by the mortgage agreement.
Otherwise, it is almost impossible to receive full payment; for example, the mortgage was provided for 3 years, and, therefore, the insurance contract was drawn up for 36 months.
Provided that the loan amount was repaid much earlier, in 2 years, which means that the consumer used the services of the banking institution less than specified in the contract, it is possible to receive a return of mortgage insurance funds only in the amount of payments that were made in the last period.
However, it is worth considering that almost all banks do not agree with this solution to matters and flatly refuse to pay money to the borrower, citing the fact that the consumer paid off the mortgage early and only therefore did not use the services of the bank, while the bank has no debt obligations to him (all conditions refund of funds under insurance are specified in an officially executed contract with the client).
However, in general, judicial practice does not support this position of financial companies, referring to the legislative right of the consumer, prescribed in the provisions of the Civil Code of the Russian Federation.
Thus, the law regulates the borrower’s right to receive unused money for mortgage insurance under a valid agreement. But there are also decisions in judicial practice that “turn” negatively for the bank client, based on the principle of freedom of contract. Thus, the applicant's claim will be denied receipt of unused insurance funds.
In any case, you should always go to the end and try to defend your rights and return the money, subject to early repayment of the mortgage funds.
Required documents
- Initially, when a borrower contacts a credit company, the first will be asked to write an official statement indicating a request to return unused funds. The application must be written according to the approved template, which will be proposed by a bank specialist.
- You will also need:
- Identity document.
Features of insurance return in Sberbak and VTB 24
The most popular mortgage lending programs are:
- Sberbank.
- VTB 24.
Subject to early repayment of the loan from Sberbank, you can safely count on the return of unused money, since this possibility is officially stated in the concluded insurance contract.
It is thanks to the reliability of Sberbank that you can be completely sure that if the service was not provided, then you do not need to pay for it. In order to receive the money you are entitled to, you must:
- Go to a bank branch in person.
- To write an application.
- Provide documents.
However, in such a situation, Sberbank can independently set the period for making payments, but most often it is no more than 1 month. During this time, bank specialists will:
- Carefully consider the terms and amounts of contributions.
- Study the borrower's request.
- Justify it legally.
If payments are made with a delay, the client can sue for payment of the corresponding interest due to the fact that the bank uses someone else's working capital during this period.
In this case, the amount of interest will be calculated at the Central Bank refinancing rate at the moment.
The process of returning money itself is rarely carried out in cash; the transfer is mainly carried out to a card, the number of which will need to be indicated in the application.
The return of mortgage insurance is made on the basis of a previously signed consumer mortgage lending agreement, at the same time with which an insurance agreement for the risks of non-repayment of borrowed funds was also drawn up.
So, if at VTB 24, a loan was taken out in the amount of 120,000 rubles and at the same time 20,000 is the insurance amount, and the borrower receives only one hundred thousand “in hand” for use, the difference amount can be transferred to the banking institution as an initial insurance premium .
Provided that the funds were offered to the consumer for 2 years and were returned within a year, the citizen fully fulfilled his loan obligations to the bank by returning the principal amount of the debt. VTB Bank provides for making a decision on the payment of unused insurance funds within 10 days,
Each borrower of bank funds, subject to early repayment, has the legislative right to receive unused insurance funds, however, you must be prepared for the fact that going to court is inevitable.
When applying for a loan to purchase an apartment with a mortgage, the bank must insist on insuring the apartment against fire and other accidents. It is impossible to refuse this insurance. Insurance is issued for the entire term of the mortgage. A client who repays a mortgage loan early suffers material losses because he has to pay for insurance that is no longer needed. How do I get my mortgage insurance back? Is this possible in principle? What documents are needed?
Can I get my insurance back after I pay off my mortgage?
All possible ways to return unused insurance funds are usually specified in the insurance contract. Insurance institutions do not focus the attention of clients on these points in order not to lose money, but by law such opportunities must be provided. Please read the insurance contract carefully. It specifies all the possibilities for returning unused funds. If there are no such provisions in the insurance contract, they can be found on the web portal of the insurance institution. You need to study the public agreement between the insurance company and the client posted on this portal.
Standard requirements for the return of unused funds under an insurance contract:
- The mortgage loan must be repaid early and in full.
- To issue a refund, the client's application must be drawn up within a certain period from the date of repayment of the mortgage loan. Typically this period is one month. Don't delay submitting your application! If you are late in submitting your application, you will not be able to return any unused funds.
- Not a single institution operating in the insurance industry will return more than 40% of the insurance funds. Please take this into account when paying off your mortgage. If you pay back your mortgage too quickly, you may not be able to get back some of the insurance money.
However, you can return the money in full. The entire insurance amount is returned to the client who repays the mortgage loan within the first month of the loan agreement. The amount is also refunded if the client decides to insure the apartment with another organization. In both cases, all money paid for insurance is returned. The company deducts from the amount only expenses incurred during the registration of insurance.
Types and options of insurance when applying for a loan
It is also important to understand what exactly you are insuring. When taking out a mortgage loan, there are three types of insurance:
- Client life insurance. With this insurance, the bank compensates for losses in the event of the sudden death of the borrower or his death from an accident.
- Apartment insurance. This insurance compensates for standard risks of damage to the apartment: fire, flood, flooding of the apartment by neighbors, etc.
- Insurance of the borrower against loss of ownership of the apartment. Under such an agreement, compensation will be paid to the client if anyone contests the fact of purchasing the apartment. This type of insurance is called title insurance.
The bank seeks to impose all three types of insurance on the client. This is beneficial for both the bank and the insurance company. In addition, the bank and the insurance company can be partners. But by law, the bank has the right to require only apartment insurance, and life insurance and title insurance are not mandatory. The client can refuse them.
How to get your insurance back after paying off your mortgage
Now let's move on to practice and explain how you can get your insurance back after repaying your mortgage. The procedure for returning insurance is as follows:
- The client repays the mortgage loan before the payment is due. Having deposited funds, the client needs to obtain a certificate from the bank stating that the mortgage has been repaid ahead of schedule. Registration of such a certificate may take up to thirty days.
- The client contacts the representative office of the insurance institution, having in hand a certificate from the bank. The insurance company and the bank are independent organizations; bank employees will not be able to return insurance funds to you. The client needs to find out the address of the insurance company’s representative office and contact there.
- At the representative office of the insurance company, the client draws up an application for the return of funds. The application must be accompanied by a certificate from the bank confirming the early payment of funds received under the mortgage loan, as well as other required documents. The application is accompanied by a bank account number for transferring unused insurance funds.
- The client is awaiting a decision from the insurance company on the return of funds. The decision must be made within a reasonable time. If the period is not specified in the insurance contract, it is a month.
- If a positive decision is made, the money is transferred to the account specified by the client in the application. After this, the client can use them for his own needs.
If the insurance company stubbornly refuses to return the money and refuses to pay, you must request a certificate indicating the reasons for the refusal. Having such a certificate in hand, you can go to court. When drawing up a statement of claim, you must attach the same documents as when applying to the insurance company.
If the amount you need to return is large enough, you should contact a lawyer specializing in insurance law or hire a lawyer. The application to the court must include a demand for compensation for losses incurred during the trial.
How to return imposed mortgage insurance?
In the psychology of Russians, one of the characteristic features is the manifestation of timidity in front of financial institutions. Having received the loan agreement in our hands, we are in a hurry to sign it or are embarrassed to ask for clarification of unclear points. Because of our timidity and inattention, the bank may impose insurance.
You can get your money back for imposed Sberbank mortgage insurance. According to the law of our country, insurance imposed on a client without his consent is considered invalid.
Life and disability insurance for clients at Sberbank, as in other banks, is voluntary. At any time, the borrower can apply for its termination and receive the unused amount in hand. But insurance of property purchased with a loan (car or apartment) is required. Here we can talk about a refund. Only after all funds received from the loan are returned. The procedure follows the algorithm described above.
There is no need to be afraid that the return of insurance funds will ruin your credit history. According to the rules for working with loans, information about transactions with insurance is not entered into the credit history. A banking client has the right to request information about his credit history from Sberbank once a year for review. If you are not satisfied with certain entries, you can appeal them through the bank administration, and in case of refusal, through the court.
You can return mortgage insurance at VTB 24 Bank on the same principles as at Sberbank. When repaying a mortgage loan early, the client receives a certificate from the bank stating that the loan has been fully repaid. With this certificate in hand, the borrower contacts the representative office of the insurance company that serviced the insurance contract. Upon receipt of the application, a bank specialist reviews the application and the documents attached to it within a month. After this, a decision is made to return the money for the unused period, and the remaining amount is transferred to the bank account that the borrower indicated in the application.
Like Sberbank, VTB 24 does not have a mandatory requirement for life and disability insurance for the borrower. But real estate purchased with a mortgage will have to be insured.
How to get mortgage life insurance back
First of all, remember: life insurance in our country is voluntary. The bank does not have the right to refuse to provide a loan to a client if the borrower refuses to insure his life. However, life insurance will protect both the bank and the client from financial losses. Banks also impose life insurance for reasons of partnership policy with insurance organizations. But the client has the right to decide for himself whether to insure his life or not. Sometimes the smartest thing to do is, having received a loan refusal from one bank, to contact another representative office or another bank.
Often, a bank will refuse to issue a mortgage loan if the borrower refuses to insure his life. At the same time, the reason for the refusal is not directly stated, since according to the law, life insurance is voluntary, and the decision on whether to insure or not must be made by the client. In this case, it is necessary to obtain from the bank a written justification for the reasons for refusing the loan.
At the same time, concluding an agreement on life and disability insurance for the client also has its advantages for the borrower. For example, Sberbank reduces the cost of a mortgage loan by 1% for a client who purchased an insurance policy from it. Since the mortgage loan amounts are large, 1% becomes a very noticeable discount. Life insurance is a guarantee that mortgage payments will be repaid on time. In case of short-term incapacity for work of the client (for example, due to sick leave), insurance compensation will help cover the next payment without facing bank sanctions.
Thus, the client has the right to decide for himself whether he needs life insurance. But the choice is often this: either with a loan, but also paying for insurance, or without insurance, but also without a loan. Each client must choose for himself.
Obviously, the question is: “How do I get my mortgage insurance money back?” does not have a simple and unambiguous solution. But, knowing your rights, you can waive the costs of optional forms of insurance or return part of the losses by paying off your mortgage payments early.
During the loan issuance procedure, banking organizations may resort to various methods to include a package of additional services in the insurance. As a result of these actions, when repaying loans early, borrowers face many problems associated with the inability to return insurance funds.
Often, a refusal to pay an insurance premium that has been paid for the entire period of validity of the loan agreement is unlawful, as a result of which the borrower has to defend his rights directly in court.
What is loan insurance?
The insurance agreement provides protection for the bank in cases where the borrower cannot repay the borrowed funds. Thus, loan insurance protects, first of all, the interests of the bank, which is why this service may be included in a package of additional services that are stated as mandatory when applying for a loan.
Insurance under the contract is a service that is concluded at the stage of processing the main cash loan. In this case, the insurance policy involves the payment of certain funds, which can be made together with the main monthly payments, as well as repayment of the main payment.
Conditions for early termination of the insurance contract
After the loan is terminated, you must try to recover at least part of the premium paid directly to the insurer. If you repay the loan early, you must contact the main insurance company with the following package of documents:
- a copy of the main loan agreement;
- borrower's passport;
- a certificate confirming repayment of the entire loan amount in full;
- a statement providing for the possibility of early termination of the main insurance contract and a partial refund of the amount of money.
In this case, you must contact the insurance company directly with this documentation.
How to return part of the insurance premium?
To receive a partial refund of insurance funds, borrowers can use two methods:
- Direct contact to the bank where the loan was issued. But this option is only possible if the insurance policy was purchased during the procedure of taking out a loan along with a basic package of services. In this case, it is better to submit the application immediately after repaying the loan. In any case, before visiting the bank, you need to re-read the loan agreement and make sure whether there is a possibility of returning the insurance.
- The client contacts the insurance company with a certain package of documents. The insurer must provide documentation, which includes a passport, contract, certificate of absence of debt, as well as account details for transferring the insurance portion of the premium. It is also necessary to attach all receipts confirming all payments made for this service.
Where to contact?
If you repay the loan early to terminate the main insurance contract, you must contact the bank or directly the insurance company. At the same time, it is necessary to save all documentation, including refusals from banks and the insurance company - all this can be useful for implementing a positive decision in court.
Thus, the law regulates the borrower’s right to receive unused money for mortgage insurance under a valid agreement. But there are also decisions in judicial practice that “turn” negatively for the bank client, based on the principle of freedom of contract. Thus, the applicant's claim will be denied receipt of unused insurance funds.
The insurance return process involves the preliminary collection of important documents that will be needed to complete an application to provide copies. To contact the insurance company you will need the following package of documents:
- Passport;
- existing loan agreement;
- original insurance policy;
- bank statements confirming the availability of all payments.
What to do if insurance is included in the package of additional services?
Sometimes banks inform you during the loan application process that there is a special loan insurance program provided by the credit institution itself. That is, when applying for insurance, the insurance company is not involved, and the service is officially considered a commission payment directly to the bank.
Thus, the borrower most likely will not be able to appeal in court for the return of the insurance, because he himself voluntarily, under the contract, agreed to additional commission deductions to the bank, which were called insurance premiums for the loan when registering. But in any case, you can try to solve the problem in court, as well as seek help from various legal organizations and solve the problem of at least a partial return of the commission.
Help from non-profit advocacy organizations
You can always get a portion of your insurance premiums back by contacting highly qualified specialists in this field. There are non-profit institutions that can protect the rights of credit consumers who find themselves forced to impose mandatory insurance services.
These institutions can provide a wide range of services and are official representatives in resolving various issues of obtaining compensation for full repayment of the loan.
Judicial practice on the return of funds
When you contact a banking organization on your own, some difficulties arise in which the bank refuses to pay the insurance portion of the premium. At the same time, today there are free organizations that provide legal services for the return of insurance payments when repaying a loan.
Qualified specialists of these institutions have quite a significant regular practice, which confirms their experience in resolving various situations in a banking organization. Assistance to borrowers is provided in each region, and often the court decision remains on the side of the borrower and he receives part of the premium on the insurance premium.
At the same time, all payments imposed by the bank are returned under the terms of the loan agreement, the clauses of which contain the possibility of returning funds for insurance.
Highly qualified lawyers will advise the client in collecting the necessary list of documentation required at each stage of the money return procedure. Reliable specialists allow you to prepare high-quality claims that are submitted directly to financial institutions. Specialists will advise the client on drawing up a statement of claim, which will help resolve the issue of insurance return. In this case, the client can be freed from direct participation in the judicial resolution process if he writes the appropriate power of attorney to a legal entity that has the right to represent the interests of the borrower at the meeting.
Features of the return of insurance upon early repayment in VTB 24 and Renaissance Credit
VTB 24 uses its own insurance program. This program includes certain rules, thanks to which the borrower can terminate the contract at any time, while the return of insurance funds paid is impossible.
The insurance company allows you to return the amount paid to clients only if they apply within 5 working days after the immediate execution of the insurance contract. Also, in 2016, a law came into force that provides for the opportunity to refuse all insurance imposed by the bank.
This provision applies directly to all concluded VTB24 contracts. But the bank has provided some nuances - if the client signs an agreement to participate in collective insurance, the insurance may not be returned.
The conditions for returning funds under the insurance procedure of the Renaissance banking organization are almost identical. An application for termination of an insurance contract can be submitted if there are no risks of insured events occurring. The insurance premium can be partially refunded in accordance with the contract, and the program also applies to early repayment of the loan. Any bank refusal can be challenged in court, referring to the loan agreement, if it contains the appropriate wording.
