Home Useful properties of fruits We find out if insurance is compulsory when receiving a loan. How to cancel insurance after receiving a loan

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We find out if insurance is compulsory when receiving a loan. How to cancel insurance after receiving a loan

One of such conditions that banks are trying to include in a lending agreement is risk insurance for loans, is it legal? You will learn about whether it is possible to refuse insurance on a loan and how to do it from our article.

In recent years, insurance upon receipt of a loan has become in fact an integral part of the agreement of any credit institution, which is associated with an increase in the risks of non-payment of funds. And if insurance can be avoided when applying for a loan for a small amount of insurance, then when issuing large loans to a borrower, banks practically oblige the client to purchase insurance from partner companies. As a rule, insurance costs are not small, so many borrowers are interested in the question of how to refuse credit insurance and, in general, whether credit insurance is legal.

What is credit insurance?

Loan insurance is a service provided by an insurance company that is a partner of the bank where the loan is issued. By issuing an insurance policy, the insured receives guarantees from the organization in helping to pay off the loan in insured events when, due to unforeseen circumstances, he will not be able to repay the loan. Insured events can be:

risk to the life of the borrower,
loss of property rights;
loss of health by the borrower,
loss of work by the borrower
floods, fires, earthquakes and other natural disasters that may threaten the subject of the pledge.

At first glance, it may seem that the refusal of insurance for a loan is the wrong decision of the borrower: the loan is taken for a long time, and the contract with the insurance company will allow you to protect yourself from unforeseen situations. However, credit insurance has a huge disadvantage - it has a significant impact on the amount of the monthly payment; insurance costs are sometimes more than the payment of the principal. By refusing insurance when applying for a loan, the borrower saves significantly, the occurrence of an insured event is an unlikely prospect, and the money has to be paid regularly.

Is the loan insurance legal?

Whether insurance is a duty for the borrower or insurance can be avoided depends entirely on what type of loan we are talking about, the collateral also matters.

Part 2, Article 935 of the Civil Code of the Russian Federation determines that life and health insurance of citizens is an exclusively voluntary procedure and cannot become an obligation. Consequently, the borrower, when applying for a loan, has the right to refuse life and health insurance. Part 4 of the same article fixes that the obligation of insurance does not at all follow from the law, but can only be based on a contract. The only exceptions are cases with a mortgage, the bank will not be able to refuse to insure the collateral: Article 31 of the Law of the Russian Federation "On Mortgages" imposes on the borrower the obligation to insure the pledged property, and at its full value and at its own expense from all possible risks. It is worth noting that car loan insurance is not regulated by law, despite the transfer of the vehicle as a pledge to the bank. From which we can conclude that, unlike a mortgage, with a car loan, the borrower has the right to completely refuse to issue an insurance policy.

Cancellation of insurance on a loan: consequences

The borrower can refuse insurance on a loan, both when drawing up a loan agreement, and after a certain period of time has elapsed after its conclusion and subsequent execution. In case of refusal at the time of the conclusion of the agreement, the bank may refuse to lend or increase the interest rates on the loan in order to minimize the risk of losing funds. Therefore, before deciding when to refuse insurance, it is initially recommended to carefully study the loan agreement: 1. If the agreement does not contain information about the possibility of raising the loan rate in the absence of the borrower's insurance policy, you can safely refuse insurance, since in the future the bank will not will be able to change the rate unilaterally. 2. If in the loan agreement there is no prohibition on the possibility to refuse insurance, the borrower can refuse the insurance policy, both at the initial stage of the loan, and during the execution of the agreement. To do this, it is enough to come to the bank and write a written statement of refusal, after which the bank employees must provide the borrower with a new payment schedule, which excludes the presence of insurance premiums. It is better to do this within 30 days from the date of the conclusion of the insurance contract in order to avoid unnecessary red tape on the return of payment of insurance premiums.

Important! If the bank refuses to terminate the insurance contract, the borrower has the right to appeal this decision in court. First of all, you should prepare a claim to the bank for refusal and refund of funds, if the bank does not fulfill the requirements specified in the claim, you should apply to the judicial authorities with a statement of claim.

Is it possible to return the loan insurance

If you nevertheless decided to insure yourself when applying for a loan and subsequently voluntarily made the necessary insurance payments, you should know that the law allows you to return the money spent. This can be done by contacting the relevant organizations, where a loan or insurance was issued, or through a court that will decide to recover the borrower's costs from the bank or insurance company. Russian legislation protects the rights of citizens in these matters with several regulatory legal acts:

The borrower's rights under Art. 11 of the Federal Law "On Protection of Competition" and articles of the Federal Law "On Protection of Consumer Rights" are violated if the borrower's obligation to insure risks is present in the lending agreement - this may become the basis for satisfying the client's claim for the return of the amount of insurance premiums made during the repayment of the loan under payment schedule.
Also, Art. 421-422, 927 of the Civil Code of the Russian Federation contradicts the presence in the loan agreement of a clause on the obligation for the borrower to pay a fee for joining the insurance program or reimburse the bank for the costs incurred in insuring the loan.

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Any borrower is familiar with the situation when a bank employee, when accepting an application for a loan, practically insists on drawing up an insurance contract. The loan officer can exert quite a lot of pressure, talk about the possible benefits of insurance, or threaten that the financial institution will not approve the loan application. How to make out what insurance brings - only additional expenses or real benefits? Is it legal for banks to sign an insurance contract? In this article we will answer all your questions regarding credit insurance.

When talking about "credit insurance", borrowers most often mean the most popular type of insurance when health and life are insured. However, in practice, there are a number of insurance contracts that are drawn up for the period of validity of the loan agreement:

Borrower's life and health insurance. In the event of an accident that led to the death or incapacity of the client, the insurance company is obliged to pay the bank the balance of the debt on the loan;
Job loss insurance has become quite popular in times of crisis. When the borrower is dismissed on the initiative of the employer (for example, in the event of a layoff), the insurance company makes a payment;
Insurance of pledged property (apartment, car, equipment) against loss of property rights, theft, physical loss, etc. The specific list of risks that are insured depends on the type of property, its characteristics, the requirements of the bank.

The benefits of insurance for a loan are obvious: even if the borrower is in a difficult financial situation and is unable to repay the loan on his own, the insurance company will do it for him. Consequently, insurance is a kind of guarantee that the loan will be repaid in any circumstances, which is especially important for long-term loans.

On the other hand, an accident may not occur at all, and insurance premiums are quite large (depending on the type of contract and its term, they can range from 0.2-0.3% to 1.5-2% of the loan amount every month) , therefore, the desire of customers to abandon the actively offered loan insurance is understandable.

Why do banks actively "impose" loan insurance

If the benefits of loan insurance for the borrower are rather controversial: although it gives confidence in the future, but at the same time increases costs, then for the bank there are no negative sides:

Firstly, by insuring the life of the borrower or collateral, the credit institution significantly reduces the risk of default on the loan. Of course, such a loan will be much more preferable than one that has not been insured for;
Secondly, banks receive significant commissions from insurance companies. Moreover, they can be up to 30-40% of the contract amount.
Third, the bank can get the additional benefit of including insurance in the "body" of the loan. Such a procedure is carried out when the borrower is unable to pay the cost of insurance before the loan agreement is drawn up. In fact, the bank issues an additional loan to pay insurance contributions, and itself receives income from interest on this amount.

As we can see, due to the execution of an insurance contract, the bank not only reduces its risks, but also receives additional profit. It is not surprising that credit officers practically insist on taking out insurance, even when it is optional.

Is it possible to refuse insurance and what is the threat?

Many borrowers, frightened by large insurance premiums, declare to banks that they are not doing an insurance contract. However, in many cases, they are confronted with the fact that in this case, insurance is required. The fact is that it is fashionable to divide all loan insurance into several groups:

Category	Main types	Consequences of refusal to register
Mandatory by law	Home and title insurance when applying for a mortgage loan	Refusal to conclude a loan agreement, supervisory authorities do not register a mortgage agreement
Mandatory credit programs of most banks	Life insurance for lending to pensioners, military mortgages; CASCO for car loans	Refusal to issue a loan
Individual bank credit program requirement		Refusal to apply for a loan or increase in interest rates
Optional	Any type of loan at the discretion of the bank	A slight decrease in the likelihood of obtaining a loan, an increase in the interest rate is possible

Obviously, the borrower may not refuse all types of insurance, because many of them can be the main condition for issuing a loan (in this particular bank or in most of them). So, it is impossible to get a mortgage without insurance of the purchased housing, in most cases banks do not issue car loans without registration of CASCO. As for life insurance, it is mandatory for risk groups, in other cases, you can try to get yourself from insurance of your health and disability.

Is it always beneficial to refuse insurance for a loan?

Bank clients for the most part believe that refusing insurance is financially beneficial - after all, in this case, you will not have to pay insurance premiums, but only pay on the loan. However, practice shows that this is not always the case:

Firstly, the occurrence of an insured event will lead to the fact that you will find yourself face to face with your financial problems. For example, an accident will lead to disability, but the bank will still demand payments on the loan, charging fines and penalties for forced delays.
Secondly, the bank can really refuse a loan, without explaining the reasons, so that the borrower will not find out how much this decision was influenced by the refusal of insurance. You should not give up the insurance policy if the chances of getting a loan are already low (for example, with a bad credit history, large debts, unstable or unofficial income, absence of a family for mortgage lending, etc.).
Thirdly, if a loan is issued without insurance, the bank has the right to increase the interest rate on the loan in order to compensate for the increased risk of non-payment. Such an opportunity can be specified in the tariffs for the credit program or be included in an automated program (for example, for express lending).

To take out or not to take out insurance?

If we are not talking about compulsory insurance prescribed by law or the terms of a specific program, then the borrower has the right to refuse to take out insurance. However, do not forget about the possible consequences that such a decision may entail:

Unattractive lending conditions (as a rule, an increase in the interest rate);
Possibility of refusing a loan. No matter how the financiers prove the opposite, many banks lay as one of the parameters of the scoring program the borrower's willingness to insure. In case of refusal of insurance, the scoring score is reduced, reducing the chances of a positive decision. If for clients with a good reputation, stable financial position and a positive credit history, such a change in assessment is not critical, then for more problematic clients it may be decisive.
Actually the risk of loss of legal capacity, property and the inability to receive insurance payments.

It is up to the borrower to decide whether or not to take out insurance. You should not give in to the persuasion of bank employees, it is better to independently weigh all the pros and cons and make a deliberate decision.

In the case of a loan in a large amount for a long time, it is better not to skimp and still take out insurance, since the probability of an insured event occurring in 10 or 20 years is quite high;
If you wish to refuse insurance, find out the bank's conditions for both situations and compare with each other to choose a more advantageous offer;
When it comes to a credit card, a merchandise loan, or a small amount of inappropriate loans, insurance usually does not provide benefits, but only increases costs. This is especially true for programs with a clearly fixed rate on a loan and a short term.

Today, when applying for a loan at a bank, a client may be offered loan insurance. The service is imposed on a mandatory basis with the expectation of the client's financial illiteracy. Many bank managers are already announcing the monthly payment, which includes the fee for this service. If you look at the essence of the issue, then in the end you get decent spending. On average, the insurance premium is 1% per month of the loan amount. In addition, it is included in the body of the loan and interest is also charged on it. Therefore, if you do not want to incur unnecessary financial losses, you should know whether it is necessary to take out insurance when receiving a loan.

Loan insurance is often already included in the estimated payment

What does this service give to the client

Not many people imagine what insurance is. In consumer lending, when a person draws up a commodity or cash loan, he can be offered this service. The life and health of the borrower is insured... When signing a contract, it is especially worth paying attention to which case will be considered insured. As a rule, these are:

death;
loss of ability to work as a result of disability group 1 or 2.

Some banks consider only group 1 disability as an insured event. Death as a result of a long-term illness, which was identified even before the conclusion of the transaction, can be appealed and will not be considered as an insured event. Therefore, when agreeing to life insurance, you should definitely clarify all these nuances.

It should be noted that an insurance contract is signed not with a bank, but with an insurance company. In most cases, she and the bank have one owner, therefore, the client is not given much choice when applying for a loan. The insurance contract is automatically printed out together with the loan contract.

In the event of an insured event, the insurance company undertakes to fully repay the body of the loan. It includes the amount that the client received in his hands or that was transferred to the seller in payment for the goods, as well as a one-time commission for:

preparation of documents;
make a deal;
account opening and maintenance.

You can refuse unnecessary services even before signing the contract.

The interest is paid by the borrower or his heirs. If most of the body of the loan would be paid by the client, the insurance company will compensate for its costs, the missing amount is transferred to pay off the debt.

On the one hand, concluding a contract with an insurance company when applying for a loan will allow you to protect yourself and your heirs from the onset of unforeseen force majeure circumstances. On the other hand, the likelihood of their occurrence is negligible, and the size of the insurance premium can be prohibitive.

What does this service give to the bank

In the event of the death of the borrower or loss of ability to work, due to which he will lose permanent monthly income or the size of the latter will be insufficient to pay the loan, the insurance company will return the debt to the bank. Otherwise, the bank will have to suffer losses.

The heirs are not required to repay the loan. This is their voluntary decision. If at the conclusion of the transaction additional security was provided in the form of a pledge, it can be confiscated by the representatives of the bank and “sold under the hammer”. The money received will be used to pay off the debt. With a consumer loan, the subject of the pledge, as a rule, is the goods, which were bought with borrowed funds.

If the insured event does not occur, the insurance company receives its premium. In most cases, this is how it happens. Therefore, bank insurance is often a waste of money for the client. Since the bank and the insurance company have one owner, huge profits are earned on this. Credit representatives have insurance sales plans. In addition, they receive additional bonuses for this. Therefore, bank employees try to keep silent whether insurance is mandatory or not when applying for a loan.

Should I take

Life and health insurance must be voluntary in accordance with consumer protection law. If, at the conclusion of the transaction, this service was imposed by a bank employee, the borrower has the right to file a claim in court.

Life insurance helps to pay off a loan in certain life situations

Since taking out insurance for lending is beneficial for the bank, it tries in every possible way to stimulate the client to give his consent. So, if the client refuses the service, the interest rates will be several orders of magnitude higher. Possible limitation of the credit limit and debt repayment period. Many managers argue that going out of insurance lowers the chances of getting a positive decision on the application. In fact, this is not the case. This is just another trick to sell an expensive service.

To take insurance or not, everyone decides for himself. In this matter, it is important to read the loan agreement, and not listen to the bank's representatives. The latter are an interested party, so they will in every possible way "embellish" the advantages of the service and skillfully hide the disadvantages.

Is it possible to cancel insurance after the conclusion of the transaction

According to the instructions of the Central Bank of the Russian Federation, which came into force in November 2015, the client is given the opportunity to refuse this service. This can be done within 5 working days from the date of the transaction. This is especially true. Many borrowers, feeling euphoric about buying a new thing or getting cash, do not think about how much they are actually overpaying.

In the best case, only the next day will you realize how much the bank and the insurance company will actually have to pay for the service. Moreover, in a hurry it is not always possible to read the contract that you are signing. Cancellation of the policy after the conclusion of the contract is a troublesome business. You will need to collect a package of documents, which should include:

copy of the client's passport;
payment order or check proving payment for the service;
statement of refusal from the services of the insurance company;
copy of the loan agreement;
an inventory of the documents provided.

To refuse insurance, you need to write an application

An insurance waiver application has a specific form. So, it is necessary to indicate the following information:

surname, name and patronymic;
personal phone number;
passport data;
the reason for the termination of the contract;
personal signature and date of writing the application.

Many organizations, if a client wants to write a waiver, provide him with a special form and sample for correct filling. Therefore, it is not recommended to search for samples of these documents on various sites. They may differ for each organization. Therefore, it is necessary to take as a sample the form used in the very organization in which the loan was issued and to which the application will be written.

The documents must be personally handed over to the insurer's office or sent by mail. However, the second option is not recommended. There are frequent failures in the work of the mail service, so there is no certainty that the application for termination of the insurance contract will be delivered on time.

The insurance company is obliged to reimburse the client's expenses related to the purchase of the policy no later than ten days after the written refusal is received. In the case when the contract has already entered into force (in some cases this happens immediately after signing, and sometimes - some time later), and the client did not have time to cancel it within five days after signing, the insurance company has the right to withhold part of the funds for the provision of the service ... The amount of this amount will be proportional to the time during which the contract was in force. This means that if the application for refusal was drawn up three days later, then the insurance company has the right to keep the money for three days for itself. After all, it is believed that during this period the client was insured and the service was provided in full.

Is it possible that insurance costs will not be reimbursed

Refusal to return insurance funds is not uncommon. Moreover, we can say that it is ubiquitous. Not a single financial institution will refuse to make a profit from a particular transaction, and insurance is no exception. In addition, they make a profit on each debt, which is charged with interest, and the cost of the insurance policy is almost always included in the total loan amount.

In cases where a refusal to return funds is given, and the client considers this to be an illegal decision, he has the right to defend his rights in court. However, this entails the need to pay legal costs, such as the services of a lawyer and the payment of state fees.

Cancellation of insurance is possible after its registration

Is it possible to terminate the loan agreement by the bank if the client refuses the policy?

This is yet another myth used to scare customers. There is no legal basis for such a procedure. Practice shows that it is easier to abandon the policy at the stage of concluding a deal than after going through all the bureaucratic milestones. For the client, insurance is unprofitable in most cases. The costs of paying insurance premiums are too incomparable with what it gives, since the probability of an insured event is very low.

In what cases is it necessary to take out insurance for lending?

There are such credit programs in which it is mandatory to issue a policy. These are car loans and mortgages. In this case, it is not the life and health of the client that is insured, but the subject of the pledge. What is this insurance for? Thus, the bank is trying to minimize possible risks associated, for example, with:

car theft;
getting into an accident;
fire and others.

Is it legal to impose life and health insurance on the borrower when applying for a bank loan? No! However, if the service is canceled, the credit terms will become less attractive for the client.

You can refuse insurance. This can be done both before and after receiving a loan. The difference is that refusal of insurance before and after obtaining a loan is possible on various legal grounds, which will be discussed in this article.

You need to remember this:

The bank does not have the right to impose on you the purchase of life insurance, disability and other risks when concluding a loan agreement.

The prohibition on the imposition of additional services for a fee is directly established by Article 16 of the Law on the Protection of Consumer Rights.

“It is prohibited to condition the purchase of certain goods (works, services) on the compulsory purchase of other goods (works, services). Losses caused to the consumer as a result of violation of his right to a free choice of goods (works, services) are reimbursed by the seller (performer) in full "
Article 16 of the Law on the Protection of Consumer Rights

Our jurisprudence confirms this.

Here is an example of a case we won, when we proved the fact of imposing insurance, although the loan agreement did not explicitly indicate the borrower's obligation to conclude an insurance agreement

In clause 8 of the Information Letter of the Presidium of the Supreme Arbitration Court of the Russian Federation dated 13.09.2011 No. 146, it is concluded that the borrower should be able to get a loan without insurance.

"The inclusion in the loan agreement with the borrower-citizen of the terms of insurance of his life and health does not violate the rights of the consumer, if the borrower had the opportunity to conclude a loan agreement with the bank without the specified condition"
Clause 8 of the Information Letter of the Presidium of the Supreme Arbitration Court of the Russian Federation dated 09/13/2011 No. 146

What is the conclusion?

Conclusion of an insurance contract upon conclusion of a loan agreement:

not obligatory for the borrower
should not affect the terms of the loan agreement in any way
You can refuse insurance at any stage, including after receiving a loan

Therefore, the borrower has the right to demand:

Concluding a loan agreement without a condition on the mandatory conclusion of an insurance agreement
Issuing a loan without increasing the interest rate, if insurance is not purchased at the same time
Refund of money for insurance and changes in the payment schedule by the bank (excluding the amount of the insurance premium and the bank's interest on it) if
Cancellation of the insurance contract and return from the insurance company of the amount of the insurance premium during the "cooling period" established by Bank of Russia Ordinance No. 3854-U
Refusal of insurance on other legal grounds, if any, for example, if there are signs of non-conclusion or invalidity of the insurance contract

How to cancel insurance (instructions)

Depending on the stage at which: before or after the conclusion of the loan agreement, the borrower refuses insurance, the procedure for such refusal is also different.

Refusal of insurance in any case must be expressed in the form of a written statement, the main purpose of which is to record the fact of your appeal to a bank or insurance company:

with refusal of insurance for the loan, if the loan agreement has already been concluded
with a proposal to conclude a loan agreement on terms that imply a reduced interest rate (without concluding an insurance agreement)
a proposal to change the terms of the loan agreement, when it contains a condition on the compulsory purchase of insurance

Download the insurance waiver sample you need:

① In case of canceling insurance before receiving a loan:

With a proposal to the bank to change the terms of the loan agreement ⇨download doc.⇦
Demanding a loan with a lower interest rate ⇨download doc.⇦

② If you cancel insurance after receiving a loan:

⇨download doc.⇦
⇨download doc.⇦
Refusal of imposed insurance ⇨download doc.⇦

An application with a refusal of insurance on the relevant legal grounds must be made in three copies:

One copy is handed to an authorized employee of the bank or insurance company, depending on who your claim is addressed to
On the second copy, such an employee must indicate his position, sign with a decryption of the signature, put down the date of acceptance of the refusal from you
The third copy must be sent by valuable mail with a list of attachments and a return receipt requested to the legal address of the person to whom the refusal is addressed.

See a sample of filling out the list of attachments in a valuable letter with a refusal of insurance

The "name of items" in the inventory depends on the content of your opt-out. If this is a statement with a proposal to the bank to change the terms of the loan agreement, then in the inventory it should be written: "Proposal to change the terms of the loan agreement."

The attachment inventory is filled out in two identical copies. You do not need to seal the envelope before sending the letter. The letter, the completed envelope and two copies of the inventory must be given to the postal worker. One copy of the inventory of the attachment will be returned to you with a round stamp with the date of dispatch and the signature of the post office employee.

And this is how the delivery receipt is filled in:

This is the front of the return receipt
This is the flip side of a return receipt

After the letter has been delivered to the insurance company / bank, a notice of delivery with the appropriate mark will be returned to you at the address that you indicate on its front side.

Attention! Don't miss this:

If you are drawing up a statement of waiver of insurance yourself, pay attention to who you need to address such a statement.

Depending on the legal basis for canceling insurance, such a statement may be addressed to:

bank
insurance company
to third parties participating in the scheme of the borrower's joining by the bank to the previously concluded collective agreement of voluntary insurance.

Borrowers often address their claims to the bank, because except for the bank he did not go anywhere, all documents, including insurance, were drawn up by a bank employee, therefore, he thinks that it is necessary to terminate the agreement at the bank.

For example, if the borrower uses the right to withdraw from the voluntary insurance contract within the established five-day "cooling period" and sends the corresponding application to the bank, and not to the insurer, then the deadline will be missed.

What's the bottom line?

It turns out that the borrower did not apply to the insurer within the prescribed period, and the bank is not an insurer and is not obliged to answer for its obligations.

The borrower will lose the opportunity to exercise his right to refuse during the "cooling period", since the law does not provide for the possibility of sending the cancellation of the contract to the insurer outside the established five-day period, or restoring the missed period.

The procedure for submitting the relevant application and its content are the key points of refusal from loan insurance. When considering a dispute by a court, these circumstances are significant and the outcome of the case largely depends on them.

Do not expect your bank or insurance company to immediately satisfy your claim upon receiving your application. This is most likely not to happen.

Banks and insurance companies receive hundreds of the same letters, and if they would return money to everyone who turns to them for insurance, then it would not make sense to impose it when issuing a loan.

You need to understand:

Until a statement of claim is filed in court, the borrower, as a rule, does not pose any threat to the bank.

According to statistics, out of 10 people who write a claim, 1-3 people will go to court.

The bank / insurance company understands that you may or may not go to court, so the issue may not be resolved with you before going to court.

The bottom line is that:

The purpose of filing an application for refusal of insurance is to fix a certain legal event for subsequent filing with a court of law, for example, a proposal to the bank to change the terms of the contract and exclude the condition on the mandatory conclusion of an insurance contract, or to conclude a contract without insurance, but with such an interest rate, what it would be if an insurance contract was concluded.

If there was no response or reaction to your refusal from insurance from a bank or insurance company, or you were sent a refusal to satisfy your claim, you definitely need to consult a lawyer on how to proceed.

Cancellation of insurance before obtaining a loan

Is it possible to somehow force the bank to issue a loan without the obligatory purchase of insurance, or not change the interest rate on the loan in the absence of insurance?

We say: you can!

And that's why:

A loan agreement concluded with a bank (in the form in which it is concluded in most cases) is from a legal point of view an agreement of accession - this is an agreement that one of the parties (in this case, the borrower) can conclude only by accepting all of its conditions, set forth in it by the other party (bank).

In clause 6 of the Information Letter of the Presidium of the Supreme Arbitration Court dated 13.09.2011 No. 146 "Review of judicial practice on some issues related to the application of administrative liability to banks for violation of consumer protection legislation when concluding loan agreements" it is indicated that the first and the appellate instance finds that the concluded loan agreement is an agreement of accession.

“Thus, within the meaning of paragraph 1 of Article 428 of the Civil Code of the Russian Federation, this agreement concluded between a credit institution and a borrower-citizen should be qualified as an agreement of accession, therefore, the borrower has all the rights of a party to the agreement (paragraph 2 of Article 428 of the Civil Code of the Russian Federation). Inclusion in the contract of conditions that infringe on these rights is an administrative offense, liability for which is provided for in part 2 of Article 14.8 of the Administrative Code of the Russian Federation "

The court indicated:

The borrower was deprived of the opportunity to influence the content of the loan agreement, since the bank employee refused to consider the changes proposed by the citizen.

“This circumstance is confirmed both by the testimony of the borrower, who indicated that during the execution of the agreement, the bank employee refused to consider the changes proposed by the citizen (in terms of changing the conditions on the jurisdiction of disputes arising under the agreement), and by the explanations of the representative of the credit institution that, in accordance with the adopted in the bank by the internal rules, standard texts of loan agreements concluded within the framework of pre-developed loan products are not subject to change at the suggestion of borrowers "
Clause 6 of the Information Letter of the Presidium of the Supreme Arbitration Court dated 13.09.2011 No. 146

428 Art. Of the Civil Code of the Russian Federation says:

Onerous conditions that a party to the contract would not accept if it had a real opportunity to influence the terms of the contract can be excluded from the contract at the request of the borrower, or the contract can be terminated.

If, when concluding a loan agreement, the bank imposes on the borrower the purchase of insurance and the borrower's requirements to change the terms of the agreement are left without consideration by the bank, this will be the basis for going to court after its conclusion with an application to exclude an onerous condition from the agreement.

The key point here is the legally significant fact that the borrower is unable to influence the terms of the agreement. In order to subsequently prove in court the absence of such an opportunity, it is necessary to provide oneself with appropriate evidence.

Cancellation of insurance after receiving a loan

How to refuse insurance when the loan has already been received, all documents have been signed, including the insurance contract.

As a rule, the borrower's first thought is to use the fact that the borrower was deceived, that the insurance was imposed by a bank representative when receiving a loan as a reason for refusing insurance:

it was said that without her the loan would not be approved,
or there will be a very high interest rate on the loan,
or that insurance can be canceled at any time (or after the first loan payment has been made).

Now look:

The fact of misleading or deceiving is of course a legal basis for filing a claim to invalidate the transaction, but it is almost impossible to prove the fact of such deception.

Banks, adjusting to judicial practice, constantly modify and improve the terms of the agreement (credit and voluntary insurance agreement) in such a way that it becomes impossible to prove deception, misleading or imposing an additional paid service in court.

You might be wondering:

If you have been imposed on insurance when receiving a loan, then most likely, if you look at the loan agreement and the insurance agreement, it will follow from their content that:

they are not related to each other,
the loan agreement will indicate that you have no obligation to additionally conclude any agreements,
the insurance contract will indicate that by signing it, you confirm that you are acting voluntarily and had the opportunity to refuse insurance.

For this reason, in order to refuse insurance after receiving a loan, other and more substantial legal grounds are required.

Today, such grounds are:

Cancellation of the voluntary insurance contract during the "cooling period" of 14 days in accordance with Bank of Russia Ordinance No. 3854-U.
Cancellation of the voluntary insurance contract outside the "cooling period" in connection with the failure of the insurer to fulfill the obligation established by the Bank of Russia Ordinance No. 3854-U to provide the borrower with information.
The provision by the bank of the service of joining (including) the borrower to a previously concluded collective insurance agreement, according to which the borrower is not an insured, deprives the borrower of the rights established by Bank of Russia Ordinance No. 3854-U.
The borrower under the above insurance scheme, not being the policyholder, still has a legitimate interest in making insurance payments upon the occurrence of an insured event, therefore, he has the right to make claims in the same way as the policyholder.
Refusal if there is evidence of imposing additional financial services.
The possibility of refusal is provided for by the concluded agreement with the appropriate recalculation of the amount of the insurance premium to be returned.
Invalidity or non-conclusion of the contract on general legal grounds.

Examples of insurance waiver statements

If you cancel insurance before receiving a loan:

With a proposal to amend the terms of the loan agreement

(name, OGRN bank)

(your full name)

(reply address)

(phone number to contact you)

STATEMENT

However, the contract contains some conditions that are onerous for me, which I cannot agree with. In particular, clause __ of the agreement contains a condition that a prerequisite for concluding a loan agreement is my conclusion of a compensated insurance agreement against these risks.

In accordance with the legislation on the protection of consumer rights (clause 2 of article 16 of the Law of the Russian Federation "On the protection of consumer rights"), as well as the clarifications contained in clause 8 of the Information letter of the Presidium of the Supreme Arbitration Court of the Russian Federation of 13.09.2011 No. 146, the borrower must be able to conclude a loan agreement without a condition for insuring the specified risks.

Based on the foregoing, I suggest that you change the terms of the loan agreement concluded with me by excluding clause __ from the agreement, which obliges me to conclude a compensated insurance agreement.

date
signature

Demanding a loan with a lower interest rate

✎ Download a sample in .doc format

_________________________________
(name, OGRN bank)
From ______________________________
(your full name)
Address:___________________________
(reply address)
Tel .: ____________________________
(phone number to contact you)

STATEMENT
about changing the terms of the contract

G. I applied to your bank for the purpose of concluding a loan agreement. A bank employee suggested that I conclude a loan agreement by joining (my acceptance of the conditions set out in the standard text of the agreement).

At the same time, the bank's employee announced that in the case of concluding a life insurance agreement (other risks), the interest rate under the loan agreement will be lower than without the conclusion of such an agreement.

Based on the publicity of the loan agreement, the terms of which are defined in a standard form and which the borrower cannot influence, the bank cannot change the interest rate depending on whether or not the borrower has entered into an insurance agreement.

Based on the foregoing, I demand to conclude a loan agreement with me (indicate the main terms of the agreement: loan amount, loan period, etc.) with an interest rate on the loan in the amount of __% per annum.

date
signature

If you cancel insurance after receiving a loan:

Cancellation of the insurance contract during the "cooling period"

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_________________________________
From ______________________________
(your full name)
Address:___________________________
(reply address)
Tel .: ____________________________
(phone number to contact you)

Refundable amount = (A / B) * C, where:

date
signature

Cancellation of the insurance contract after the "cooling off period"

✎ Download a sample in .doc format

_________________________________
(name, OGRN of the insurer)
From ______________________________
(your full name)
Address:___________________________
(reply address)
Tel .: ____________________________
(phone number to contact you)

INSURER'S DISCLAIMER STATEMENT
from a voluntary insurance contract

Between me and __________________ (insert name of insurance company) __. On __. 2017, contract No. _________ life insurance was concluded.

In fulfillment of the obligation to pay, I paid the insurance premium in the amount of _______ rubles. by bank transfer from my account.

According to Bank of Russia Ordinance No. 3854-U dated November 20, 2015, the policyholder has the right to withdraw from the voluntary insurance contract within 14 days from the date of its conclusion, regardless of the payment of the insurance premium.

Clauses 1, 5, 6, 8 of the Instructions, the obligation to provide information for the borrower is assigned to the insurer.

However, in violation of these points, such information was not communicated to me, in connection with which I did not exercise my right to withdraw from the voluntary insurance contract within the prescribed period.

Since in the period since the conclusion of the insurance contract there have been no events that have signs of an insured event, I hereby refuse to contract No. __________________ from __. __. 2017 voluntary insurance and I demand, within a period not exceeding 10 working days from the date of receipt of this application, to return the amount paid by me on account of the insurance premium in the amount of ___________ rubles. in cash / by bank transfer using the following details (select the one you need): (indicate the full details for transferring funds to you)

Calculation of the amount of the insurance premium to be refunded:

Refundable amount = (A / B) * C, where:

A - the amount of paid insurance premium

B - the number of days of the validity period of the insurance contract

С - the number of days elapsed from the beginning of the insurance contract until the cancellation of the insurance contract

date
signature

Refusal of imposed insurance

✎ Download a sample in .doc format

_________________________________
(name, OGRN of the insurer / bank)
From ______________________________
(your full name)
Address:___________________________
(reply address)
Tel .: ____________________________
(phone number to contact you)

INSURER'S DISCLAIMER STATEMENT
from bank-imposed insurance

Between me and __________________ (indicate the name of the bank) __.__. 2017, a loan agreement No. _________ was concluded.

According to clause __ of the loan agreement, the borrower is obliged to conclude an insurance agreement for the borrower against accidents and illness.

In order to get a loan, based on the terms of the loan agreement, during its execution, I was forced to sign and submit an application for joining the comprehensive collective voluntary insurance agreement No. ____ from __.__.____ as an insured person, and also to give the bank a written order for transfer of funds in the amount of _____ rubles. as payment for the insurance premium under the insurance contract No. ____ dated __.__.____ to the account ________________________, which acts as the insured under the insurance contract No. ____ dated __.__.____.

In fulfillment of the obligation to pay, I paid the insurance premium in the amount of _______ rubles. by bank transfer from my account.

I was deprived of a real opportunity to refuse the insurance service or choose another insurer, the bank did not provide me with information on the amount of the interest rate in case of refusal of this service.

All this taken together testifies to my lack of choice when concluding a loan agreement regarding the acquisition or refusal to purchase insurance services.

I was not offered not only an alternative insurance company, but also was not offered the opportunity to conclude a loan agreement without a life insurance policy, since the execution of an insurance policy was a prerequisite for a bank loan.

Considering my intention to conclude only a loan agreement with a bank to obtain credit funds, the lack of the right to choose an insurance company to issue a life insurance policy and the inability to obtain a loan without issuing such an insurance policy, we can conclude that the purchase of credit funds is conditional upon the conclusion of an insurance agreement, while while I only wished to conclude a loan agreement.

I hereby withdraw from contract No. __________________ from __. __. 2017 voluntary insurance and I demand, within a period not exceeding 10 working days from the date of receipt of this application, to return the amount paid by me on account of the insurance premium in the amount of ___________ rubles. in cash / by bank transfer using the following details (select the one you need): (indicate the full details for transferring funds to you)

If no more than 5 working days have passed since the conclusion of the voluntary insurance contract, and during this time the insured event did not occur, then the policyholder has the right to return the funds paid.

In accordance with Bank of Russia Ordinance No. 3854-U, adopted on November 20, 2015, the insurer is obliged to stipulate a return condition in the contract.

Legislative regulation of the issue

The current legislation does not say anything about compulsory loan insurance, with the exception of collateral. That is, regardless of what type of loan is issued, the bank does not have the right to force the borrower.

The collateral is subject to compulsory insurance on the basis of Art. 343 of the Civil Code of the Russian Federation. That is, the registration of a car loan or a loan using any movable property (car, deposit account, jewelry, shares, etc.) as collateral implies the mandatory receipt of an insurance policy.

Subject to the provisions of Federal Law No. 102, Art. 31 which states that the subject of the loan (real estate) is also from various negative circumstances.

Benefits of registration

Applying for a loan to make a certain purchase indicates that the family budget does not have the necessary amount. Accordingly, any additional payment or commission is burdensome for the borrower. Therefore, when a bank employee begins to impose the purchase of an insurance policy, the questions themselves arise: what is insurance, why is it needed and can you refuse it?

Insurance is a very costly procedure, because we can talk both about the life and health of the borrower, and about an expensive purchase - a residential building or a vehicle.

Obtaining a policy says that in the event of the occurrence of certain circumstances that do not allow a citizen to independently cope with his credit obligations, the insurance company will help to repay the debt.

Insurance is usually applies to the following situations:

An insurance policy is important not only for a credit institution, but also for a person, because no one knows what will happen in a day, a month or a year. It is especially inappropriate to give up protection when it comes to a mortgage loan.

Is the procedure mandatory

In accordance with current legislation, the borrower can exclude insurance when applying for a consumer loan.

You just need to meet the deadlines: 14 days if a non-target loan is issued and 30 days if a target one. To exercise this right, a citizen must pay off the debt in full. Essentially, it is not the insurance policy that expires, but the underlying obligation.

Is it possible to implement refusal of insurance before the loan obligations are fully fulfilled? Yes and no. The reason is that the procedure for obtaining a policy is an independent agreement that is not related to credit relations and is not able to influence them. That is, nothing prevents the borrower from contacting the insurer with a request to terminate the contract. But, at present, the funds for the policy are most often transferred in a single amount when applying for a loan. And in accordance with the Civil Code, the insurance company has the right to decide for itself whether it is necessary to return the funds to the borrower or not. Bottom line: the insurance contract can be terminated, but not the fact that the pursued goal will be achieved.

The procedure for terminating an agreement when applying for a loan

When signing a loan agreement, the borrower can inform the bank about his desire to refuse insurance, although it is necessary to take into account a possible increase in the interest rate.

If the credit institution forced the client to issue an insurance policy, despite the legality of the refusal, then the citizen can go to court. It is first necessary to write a statement-complaint addressed to the head of the institution with the requirement to terminate the contract.

Cancellation of insurance you should adhere to the following order:

Tell the loan manager your intentions.
Receive a relevant application.
State your wishes in writing and certify them with a signature.

After receiving funds

The loan procedure has been completed, the contract has been concluded, the money has been received ... Is it possible to cancel the insurance now?

Yes but first follows:

Carefully read the documents and make sure that the refusal is provided for by the contract.
Check the legality of imposing insurance, because the detection of deception greatly facilitates further actions.

Cancel insurance after concluding a loan agreement in the following ways:

Repay the loan ahead of schedule. First you need to completely eliminate the debt, get an extract, come with it to the insurance organization and state the refusal in writing.
Contact your insurer. If the loan agreement does not contain any obstacles, then it is quite possible to terminate the insurance agreement early.

Insurance is a by-product that the bank seeks (not without profit) to sell to each of its clients who apply for a loan.

Sometimes this is not done entirely legally. At detection of discrepancies in the contract, you should do the following:

Arbitrage practice

A careful study of the law enforcement practice regarding the borrower's requirement to return the insurance premium on the loan allows us to conclude that court decisions differ depending on the current situation.

The borrower can feel protected if the servants of Themis see in the agreement the requirements that stipulate its conclusion. That is, the condition for compulsory insurance is likely to be invalidated.

A similar procedure applies to vaguely expressed obligations. For example, life and health insurance set out in the contract by means of special terms that are not understandable to the borrower, as well as included in clauses that have nothing to do with insurance, will most likely be declared invalid by the court.

Early repayment of the loan debt will definitely improve the impression of the borrower. The court is usually of the following opinion: termination of the loan agreement automatically cancels the insurance.

By the way, in order to terminate the insurance relationship, it is not at all necessary to involve a court, everything can be formalized by mutual agreement, although the organization is unlikely to want to return the insurance premium. When drawing up a statement of claim, you should also remember that the main goal is not to terminate the contract, but invalidation, since it is this solution that will allow you to return the funds in full.

Analysis of judicial practice under Art. 177 of the Criminal Code of the Russian Federation shows that the insurance premium, as well as interest on it, can be excluded from the total debt.

Making a positive decision largely depends on whether the borrower is able to prove his disagreement with the terms of the agreement, the pressure of the bank or his own lack of understanding of the terms during the conclusion of the agreement.

But, the court does not always take the side of the borrower. The credibility of a credit institution is often indisputable in relation to contracts relating to the purchase of cars on credit and mortgage loans. By the way, in the latter case, insurance is established by law. Also, the court can side with the bank if the latter can prove that the borrower had the option to issue another loan product without insurance.