Insurance when applying for a mortgage loan is perhaps the main condition for obtaining a loan for a client of a banking organization. Sometimes banks offer the execution of any one insurance - mortgage, life and health or title, and sometimes a comprehensive option. When concluding an insurance contract, individual citizens are given the opportunity to issue a return of mortgage insurance, however, the availability of this right depends on the insurance organization and the banking institution in which the borrower is registered.
Mortgage lending involves the conclusion of an insurance contract in case of unforeseen circumstances for the immediate repayment of the debt of the insured person to the bank, but sometimes you can return the money for insurance in full or in part.
When concluding a mortgage agreement, several types of insurance are assumed:
The possibility of returning money transfers should be indicated in mortgage and insurance agreements, therefore, the absence of this clause actually deprives citizens of the right to demand the return of their own funds for services not rendered.
Return of insurance for a mortgage is possible upon conclusion of the following types of agreements:
| Name | Item | Reason for compensation | Possibilities | How is the refund amount determined? |
| property | Real estate purchased as collateral, however, compensation is taken into account only for actual damage to the structure of housing or for its destruction. Causing damage to decoration and repair is not provided. | Destruction of a dwelling due to floods, natural disasters, fire, explosion, etc. | It is possible to return the money paid, but only in case of early repayment of the loan, refusal of the services provided, if they were imposed. | It is set individually, but in case of early repayment it is no more than 50%, and in case of complete refusal after the conclusion of the agreement in full. |
| In accordance with the Federal Law "On Mortgage", this insurance program may be mandatory for the conclusion of an agreement, and then the return of insurance on a mortgage loan is not possible if the loan is not repaid ahead of schedule. | ||||
| Life and health | The life and health of the borrower in case of unforeseen death or disability. | The intentional murder of the borrower, death in an accident, death by negligence, etc., or getting a disability as a result of work, an accident, etc., is assumed, but only if the disability was not obtained as a result of a crime or offense. | You can return at any time using the warranty. | It is returned in proportion to the action - in full or in part. |
| Title | The right to acquired real estate in case of its loss. | The emergence of third-party rights to real estate. | It is carried out at any time during the validity of the agreement, but it is recommended to use it until the loan is fully repaid or within three years from the date of the loan, if the apartment was purchased on the secondary market from the heir or donee. | Depending on the period of use. |
Banking and insurance organizations do not have the right to impose this or that package of services, with the exception of obtaining a loan with compulsory property insurance. It is noted that the borrower has the right to involve a lawyer on his part and change some terms of the contract, but this practice is practically not found.
When applying for a mortgage on an apartment, housing remains as a bank collateral, supported by insurance contracts, however, as a rule, neither the bank nor the insurance organization reports whether it is possible to return the insurance.
The procedure for returning mortgage insurance depends entirely on the type of contract drawn up, therefore, if such questions arise, the first thing to do is to familiarize yourself with the terms of the agreement and the possibility of claiming the funds paid back.
Insurance for the payment of a mortgage is not returned as planned, therefore, it is possible to return the insurance after the mortgage is repaid only if the payment was made ahead of schedule. The absence of the occurrence of insured circumstances does not mean the absence of fulfillment of obligations by insurers, so you can forget about the money paid.
If you repay the loan before the expiration date of the mortgage agreement, then the borrower is returned part of the insurance in case of early repayment of the mortgage. The amount of deductions depends on how early all debts were paid.
If a housing loan was issued for 20 years and repaid within 10, while the contribution to the insurance company amounted to 150,000 rubles, then the borrower has the right to count on half of the amount paid, i.e. - 75,000, since the company's services have been provided over the past decade.
To process the return of funds, it is enough to contact the insurance organization with the appropriate application and attach documents from the bank on the full repayment of the loan.
Upon the death of the debtor, his relatives are obliged to inform the banking organization and the insurance company about it. If death is recognized as an insured event, with life and health insurance issued, then the debt to the bank will be closed. Returns are not allowed.
In the absence of life and health insurance for the mortgage holder, all obligations to make payments to pay for the mortgage are transferred to the heirs, as well as obtaining a policy, the funds paid by the borrower to repay the loan are taken into account in full. The term for the assignment of payments and the validity of guarantees are suspended until the moment of entry into the inheritance rights.
You can return the money for insurance if for some reason it does not suit the new owners - the amount is returned proportional to the unused guarantee period.
For a partial refund, you must:
Within the set time, the money will be transferred to the account of the borrower's heir.
When refinancing, it is important to understand not only the process of renegotiating the contract, but also how to return insurance on a mortgage loan taken earlier.
There are several options for borrowers:
Refinancing without property insurance is impossible, since real estate remains pledged to the bank as a guarantor of payments, and insurance is a way to receive funds issued to the borrower in case of unforeseen circumstances and loss of property.
To make a return, you must:
The return can be made in parallel with the execution of a new mortgage loan.
Refusal of the services of the insurer unilaterally is possible if the services were imposed on the client on purpose.
Funds can be returned in full or in part, depending on the circumstances.
To refuse an imposed service, a citizen must:
Imposed services under Russian law are invalidated, but it is almost impossible to determine the degree of their imposition, so part of the amount is likely to go to the insurance.
If the insurance contract contains a clause on the possible return of funds paid to the organization, then usually there are no questions. At the same time, there are situations when an unmotivated and unreasonable refusal comes.
In this case, the citizen must:
You can also indicate the reason why you need to make a return, sometimes companies meet customers and return the money, even if there is no such clause in the contract.
The accompanying documents that must be attached in the event of a refund for insurance include:
Sberbank is the largest banking organization in the country, so it is best to consider ways to return funds using this example.
There are some features of the return depending on the terms of treatment:
The return of insurance after the payment of the mortgage in advance is carried out as follows:
In case of an unreasonable refusal, you must contact Sberbank and the insurance company for clarification. After receiving a written response from the institutions, you can apply to the court, the prosecutor's office and Rospotrebnadzor if the terms of the contract are really violated.
Reimbursement of insurance money is a long and complicated process, as most of the stakeholders prevent it. Not a single insurance company and not a single bank is interested in returning funds to a borrower without good reason.
If you need help to recover money for mortgage insurance or you are interested in insurance, we recommend that you sign up for a free consultation with our lawyer in a special form. We will definitely help.
We are waiting for your questions and ask you to evaluate the article.
Today it is almost impossible to get a loan from a bank without buying an insurance policy.
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However, according to, only insurance of property, which is transferred to the bank as collateral, is mandatory. The bank has the right to offer to issue other types of insurance to the borrower only on a voluntary basis.
Therefore, in order not to break the law, bankers try to stimulate the purchase of a policy with more attractive credit rates or the inclusion of insurance costs in additional banking services. And as a result, borrowers are faced with a big problem of returning insurance money when repaying a loan ahead of schedule.
If the loan is repaid ahead of schedule, the borrower has the right to demand the return of the sum insured for the unused period of the contract. The basis for this is the norm of paragraph 3, the content of which is presented below:
Based on paragraph 1 of Art. 958, repaying the loan earlier than the term specified in the contract, the insurance risk also becomes insignificant. And according to paragraph 3 of this article, the insurer in this case can receive only a part of the sum insured, while the rest must be returned to the insured person.
Clause 7 "On the organization of insurance business in the Russian Federation" also confirms the borrower's right to receive funds for the balance of unused insurance days.
And, finally, in a letter from the Ministry of Finance of the Russian Federation from the insurer, it is necessary:
The norm "On credit histories" provides for a certain template of the borrower's credit history. It consists of several parts, one of which is informational.
The information part of the story includes the following information:
The title and main sections of the credit history contain:
Only the borrower himself can get acquainted with the additional part of the history, this section is closed for other persons. As you can see, there is no information on the exercise of the borrower's right to demand the return of the sum insured in the credit history.
Therefore, you should not be afraid to spoil it with this. Credit histories are stored in the BCI and once a year the borrower has the right to familiarize himself with the document free of charge, as well as to check the correctness of its filling.
If there is a loan or health and life insurance in the additional services of the bank, then such an agreement is not drawn up directly with the client. The execution of an insurance policy takes place between the insurance and credit organizations, i.e. between legal entities.
With bank loan insurance, the return of insurance is very problematic.
After all, here the wording is completely different, it can be drawn up in the form of a bank commission, organizational expenses, etc. And even by filing a lawsuit, the borrower is not entitled to refer to the law on insurance. In some cases, in order not to lose customers, banks make some concessions.
If the borrower writes an application in any form addressed to the manager demanding the return of paid additional services due to the early termination of the contract, the bank may be loyal to this and pay some part of the money. But the decision on the payment remains only with the bank.
Even if you file a lawsuit, you still cannot change the situation in your favor. The law does not prohibit banks from setting commissions, bonuses, reimbursement of organizational expenses.
Some banks still return a certain part of the money to their customers, as specified in a separate paragraph.
For example, Sberbank's "Collective Insurance Program for Borrowers-Individuals" provides for full early repayment of the loan. Based on clause 4.3 of the Program, the borrower is entitled to receive an insurance amount calculated depending on the remaining loan term (see below).
If the client, within 14 days after the start of the agreement, writes a written refusal to this Program addressed to the bank, then the entire amount taken for connecting to this service is returned to him in full.
And yet, how to return the loan insurance fee? If you were refused by submitting an appropriate application to the creditor or to the insurance company, referring to clause 3 of Article 958 of the Civil Code of the Russian Federation, then it will be very difficult to receive the overpaid money for insurance.
However, by contacting an experienced lawyer, you can use two options to solve the problem:
Therefore, the insurer is obligated to recalculate and return the remaining sum insured.
If the borrower has issued a credit line that includes a special insurance program, then the bank itself acts as the insured.
And since the borrower did not conclude any contract with the insurance company, then, accordingly, he cannot appeal to it in terms of early termination.
The bank included the amount of insurance in servicing the loan as a commission fee. Another trick of the bank is the so-called "Package services", which the lender sells when applying for a loan. This includes, in addition to insurance, and a number of additional services. This includes sending information via SMS, issuing debit cards, and much more.
In this case, it is not possible to cancel only the insurance from this Service Package. And if you refuse the entire Service Package, the bank will most likely refuse to issue a loan.
For a consumer of banking services, there is one way out of this situation - to appoint yourself as a beneficiary. This means that it is the borrower who will be paid the insurance premium.
Based on the norm of clause 2, the borrower, when taking out insurance, has the right to determine the beneficiary and this should be done before concluding a loan agreement.
Before signing the documents, carefully read all the points of the document. Pay special attention to the list of paid additional services, whether you are connected to the insurance program.
If you do not see the need to provide any of the services - refuse immediately.
To do this, in any form, you should submit an application to the bank to refuse additional services, as well as to return the equivalent part of the funds. Submit the application either by registered mail or by hand to the bank with a mark on its receipt.
If the bank has made a negative decision on your application and refuses to return part of the amount, feel free to contact the court and Rospotrebnadzor.
In order to take part in the court as a representative of Rospotrebnadzor, you can, in accordance with, apply to the court with a corresponding application. The specialist of the supervisory authority will give his opinion on the legitimacy of the bank's decision, which will significantly affect the positive decision of the court in your favor.
How to return life insurance on a loan if the contract provides for the case of early repayment of the loan? There are certain time frames, as well as conditions for the return of insurance money specified in the contract.
So, if the client applied to an insurance agency or a bank (provided that the bank is the insured) no later than 1 month from the date of conclusion of the contract and the respondent's issue is resolved positively, then the funds are transferred to the specified current account of the borrower. But the services for the execution of the contract will be deducted from the amount of the refund.
If a month has passed and the client has applied for a refund of the money due to him, the amount will be reduced in proportion to real time.
The defendant's decision is usually made within 1 month. If the decision is positive, the money is transferred to the client's account, and if the decision is negative, the client has the right to apply to the courts. The term for consideration of the claim is regulated by the legislation of the Russian Federation.
The conclusion is this: a refund of insurance money is possible, if such is stipulated by the contract. Otherwise, the decision is made by the insured, and the decision made by him depends only on his loyalty. Going to court does not always bring results.
From this follows the conclusion:
When claiming overpaid money for insurance, borrowers must apply to Rospotrebnadzor and to the court.
Immediately after closing the credit line, you must collect copies of the following documents:
It is worth paying attention to the fact that, based on practice, borrowers often make a typical mistake. Even if the insurance was issued by an insurance agency, the borrower still applies for a refund to the bank.
This step is justified only if the bank acted as an insurer. But in other cases, you should contact only the insurance organization.
To resolve the issue of the return of the sum insured, the borrower must apply to the bank (if the bank acted as the insured) with an application or claim, a sample of which is presented in the file below.
The application must be made in two copies, one of which must be marked by a bank employee on acceptance. If it is not possible to bring the application in person, then you can send it by registered mail with paid notification of receipt by the addressee.
Additionally, an inventory of attached documents should be made. In parallel with filing a claim with the bank, you need to submit an application for the provision of complete information on the movement of funds in your personal account. In case of refusal - contact Rospotrebnadzor.
The activities of financial and credit organizations are controlled by Rospotrebnadzor. Therefore, a similar application that you submitted to the bank should be sent to Rospotrebnadzor, a sample of which is presented below.
A copy of the claim to the bank with its response should be attached to the application.
The borrower can apply to the courts without filing an application with Rospotrebnadzor. In order for your case to be considered in court, you need to file a statement of claim, which is presented below in the file.
According to the federal law "On Mortgage", each borrower is obliged to insure the object of pledge, if this is specified in the loan agreement.
So it’s not worth arguing with a bank employee about the procedure, which cannot be said about the voluntary health and life insurance of the borrower, which you can refuse and the bank has no right to impose it.
And if the issue with collateral insurance can still be resolved, then the need to insure the life and health of the borrower is dictated by the loan agreement.
The second type of insurance is the prerogative of the parties, usually the lender insists on the need to purchase a policy. Often, manipulations are even used to ban the conclusion of a mortgage agreement, which is illegal in principle and the lender has no right to do so.
Therefore, the borrower has the opportunity to refuse to fulfill this requirement due to the imposition of an unnecessary service to him.
Further, there are two options for the development of events: in the first case, the contract for the purchase of housing on a mortgage will still be concluded, but the interest rate will increase sharply by at least 2%, therefore, lending conditions will deteriorate and become not the most favorable for the borrower.
The second option is that without issuing “voluntary” insurance, the client will be denied the issuance of money, but most likely a completely different reason will be named (so, in the end, it will not work to challenge the bank’s refusal due to insurance not taken by the client with the help of the court).
In the article, we will consider the situation when the borrower nevertheless agreed to the terms of the contract and took out an insurance policy. Can you get mortgage insurance back? e in that case and how to do it?
The final price of insurance can make up the lion's share of the price of the loan itself, so the issue of returning the money spent is so acute.
You should be prepared for the fact that in any case, it will not be possible to return all 100% of the money spent back, and it is possible to talk about how to return mortgage insurance only if the repayment was early.
If the contract was drawn up for 15 years, and the client paid off the body of the debt and interest under the contract for 10, then he can claim a refund.
The fact is that usually insurance companies offer the client not to make periodic monthly payments in equal shares, but to make a one-time payment.
In any case, everything will depend on the duration of the contract: so if a mortgage is taken for 30 years, then the client will not be required to pay for all insurance at once, because the amount is very impressive. Let's break it down with an example:
In this case, the return of insurance upon early repayment of the mortgage will be carried out according to the following principle: a person has the right to receive approximately a third of the total amount paid for the remaining 3 years of unused insurance.
If 100 thousand were paid, then 30 thousand can be returned, for which an application is sent to the insurance company, to which a copy of the terminated and paid loan agreement is necessarily attached.
But this can be done only after the encumbrance in the form of collateral is removed from the mortgage apartment, a request for this is submitted immediately after the loan is repaid.
There are no other options for returning the paid insurance, especially if the borrower did not pay off the debt ahead of schedule. In this case, the insurance issued by him is considered legal, the contract was signed voluntarily, which means that you can’t just go and terminate it.
Let's figure out what documents you may need to contact the insurance company and what else you need to know about the conditions for the return of money spent.
A person who wishes to receive a refund of mortgage insurance must meet a number of conditions:
As soon as the encumbrance is removed from the property, you can begin to collect a package of documents for the return of insurance, which will later be transferred to the insurance company.
First, study the insurance contract to understand whether it is really possible to return part of the money.
Here you can also read exactly where to go to submit documents for a refund: sometimes you have to contact an insurance company, and some insurers prefer to act through a branch of a creditor bank, so you will only need to apply and apply there.
The algorithm for returning money for mortgage insurance is simple. Gather first:
The list of documents may vary slightly, but usually nothing more than the above is required. It is also necessary to write an application for a refund, otherwise there are no difficulties in how to return insurance after a mortgage.
The application and the package of documents are considered for 30 (sometimes 60 days if the consideration is held at the main office at a different legal address).
We recommend that you familiarize yourself with the return conditions on the website of the insurance company or bank. You should not demand a return of funds from your lender, he only issues funds. Part of the insurance premiums can be returned from the insurance company and only in rare cases is this the competence of the bank.
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From the point of view of the law, if the occurrence of an insured event is impossible (since you paid off the loan, then there are no risks), the contract with the servicing insurance company is terminated earlier than the period established by the policy.
When obtaining a loan, depending on its type, various types of insurance can be issued. They can be mandatory and voluntary, and apply to the borrower's liability to the bank, as well as collateral (acquired on a loan) property.
Mandatory types include:
The following types of insurance are considered compulsory:
For all optional types of insurance, insurance can be returned, not only after early repayment, but also completely in the process of repaying the loan.
The company that issued the policy is entitled to a portion of the funds in proportion to the actual term of the loan agreement (during which you repaid the debt), and the insured person to the amount distributed over the remaining period of the policy. In this case, the returned funds are not taxed.
When assessing how much you can return, the cost of one day of insurance is initially calculated. It is multiplied by the number of days remaining from the date of application for termination of the insurance service. From this amount, the insurance company can withhold compensation already paid to you for insured events that have occurred, as well as a service fee, which can reach 30%.
Example: You took out a loan for 1000 days and the cost of insurance for it was 200,000 rubles. The price of one day of insurance is 200 rubles. You repaid the loan and applied for compensation after 600 days. During the period of repayment of the debt to the bank, the IC paid 50,000 rubles for an insured event. In this case, the maintenance of insurance is 20%. In this case, you will receive: ((200*400)-50000)*80/100=24000 rubles.
In real practice, things can be much more complicated. So, for example, when providing a loan, Sberbank offers to conclude a voluntary insurance agreement, which is collective. In this case, the bank acts as an intermediary, charging you an additional commission. This agreement stipulates the possible return by the bank of insurance in case of early repayment of the loan, the amount of which is calculated not from the total cost of insurance, but only from 57.5% of this amount.
The return of insurance upon early repayment of the loan may be rejected if the clause refuting such a possibility is specified in the agreement concluded with the UK or the bank. The presence of such a clause is not a violation of rights, and therefore it is important not only to study the contract even before the start of the debt repayment procedure, but also to pay attention to this condition at the time of its conclusion.
It is important to know that the UK itself may refuse to pay, based on the fact that the contract does not contain a clause describing the possibility of a refund. This provision is also provided for by law, but it is very easily challenged in court. Therefore, such an answer by the IC is more likely just a trick aimed at making you give up your claims for compensation.
It is impossible to return the insurance if during its validity period an insured event occurred with full payment to the injured party of the insurance premium stipulated by the policy.
In addition to the insurance contract itself, before starting the complex return procedure, you need to read the insurance rules that your insurance company provides. If you were not provided with them when applying for a policy, you can make a request to the insurer or bank, as well as search on the Internet or on the official website of the insurer. Carefully study all the points regarding the conditions under which the contract may be terminated, especially the points related to issues of early repayment of the loan.
In most cases, especially if the insurance was carried out by the bank as a representative of the UK, an application for a refund is submitted to the bank along with an application for early repayment of your loan. It must contain the justification for the refund and the method of receiving the payment (bank account number). When the bank withdraws its authority, you must contact the UK directly. At the same time, it is very important not to terminate the contract with the insured prematurely, since this may remove the obligation to return from him.
The following documents must be submitted along with the application:
The deadline for submitting an application should not exceed the date of termination of the contract with the UK. Therefore, it is better to apply as early as possible (up to 30 days). The terms for the return of funds by the insurer, according to the rules, should not exceed 10 days, but in practice this is rarely observed and can last up to several weeks.
To avoid payments, the UK may deliberately not accept the application and delay the decision. In this case, the surest way to have time to submit an application on time will be to send documents by valuable letter with a return notification of receipt, which will become a strong argument in court. To speed up the movement of the case, before bringing it to court, sending a complaint against the organization to the Central Bank of Russia will help. If there is no reaction, an application is submitted to the court at the choice of the applicant - at the place of residence or the loan.
Thus, the answer to a rather complicated question, whether insurance is returned upon early repayment of a loan, depends on many independent factors. Some manage to do this in the shortest possible time, simply by writing a statement, while others, having calculated the possible amount of compensation, refuse this idea, not wanting to waste time and effort on litigation.
