Even when submitting a request, potential borrowers are faced with the fact that an employee of the bank strongly recommends purchasing insurance when receiving borrowed funds. The borrower is warned of a high probability of rejection. You should not immediately accuse bank employees of exceeding their authority, as some loan products require mandatory registration of the policy. Return insurance for a loan in Good Bank is a standard practice used legally, subject to certain circumstances. It is necessary to understand the process, how and when the company returns the amount paid earlier.
Faced with persistent recommendations for insurance services, the client, who intends to increase the chances of approving funding, prefers to accept additional costs. Moreover, the current legislation provides for the right to refuse purchased services with the return of the transferred amount. In order to know in which cases it is possible to return insurance and with what amount the client will receive a refund, proceed from the provisions of federal legislation, paragraphs of the Civil Code, and the provisions of the agreement concluded with the financial organization.
Is it necessary to purchase insurance in Good Bank?
Despite the negative attitude towards additional costs when applying for a loan, in some cases the insurance payment is of great benefit, since it saves the client from serious financial problems and unpleasant proceedings with the bank, when the life situation does not allow you to repay the loan in a timely manner in accordance with the schedule and in full.
For Good Bank, credit insurance entails many advantages, allowing you to ensure repayment even in unforeseen situations:
- Financial protection in case of non-repayment of debt by the borrower due to deterioration of health, loss of a source of income.
- In the event of the death of the borrower, relatives will not have to repay other people’s debts in the presence of death insurance.
- Additional insurance coverage of a pledged object or property acquired on credit.
Good Bank has several insurance programs based on loans:
- the onset of disability of groups 1-2;
- customer life;
- mortgaged property;
- disability due to illness;
- loss of source of income.
One should learn to distinguish between cases when a policy is an essential requirement when applying for a loan, and when legislation exempts this need.
At the federal level, the obligation to execute a mortgage insurance contract is fixed. Since the bank needs collateral, the acquired property must be insured. Registration of personal insurance is considered an additional advantage, but not the obligation of the borrower.
If Good Bank draws up a consumer loan, it cannot demand insurance policy from the borrower, reserving the right to refuse to finance a citizen or increase the rate, protecting itself from the risk of non-repayment.
It is important to remember that even in the case of a mortgage, the service of the insurers becomes optional as soon as the repayment period of the credit line has ended. Thus, insurance on the loan has a limited duration – with the full closure of the debt, the need for a policy is no longer necessary.
If the lender refused to the borrower who rejected the insistent offer to insure, the citizens have the right to file a lawsuit in court. However, the probability of obtaining a positive verdict is questionable, since it is rather difficult to prove the fact that the reason for the refusal was the reluctance to insure. The lender has the right to make a decision on cooperation with a particular client at its discretion, without informing about the reasons for making this or that decision.
On the other hand, the borrower has the right to withdraw from the policy immediately after the bank has announced its consent to the issuance of the loan.
Features of insurance in Good Bank
After the borrower informed about the agreement to insure by taking a loan, citizens have two options:
- Leave insurance, guaranteeing coverage for the risks specified in the contract.
- Declare a waiver, if the loan does not provide for the obligation of insurance coverage, with the subsequent return of funds in whole or in part.
In some cases, when there is a high probability of deterioration of the client’s position, it makes sense to keep the policy unchanged, as the company pays compensation when an insured event occurs. However, if the reason for registration is caused solely by the perseverance of bank employees, the contract can be waived, using the right enshrined in federal law.
Before signing, you should familiarize yourself with the conditions under which the client can use the insurance taken or return the money paid for it.
Despite the fact that Good Bank works with more than 30 insurers, the lender is primarily interested in promoting the services of its subsidiary organization Good Bank Insurance. As a rule, tariffs for services will approximately coincide, differing only in types of insurance and probability of risks. For example, if a customer is engaged in life-threatening activities, life insurance will be at a higher rate.
In most cases, the cost of services will amount to 0.3–4.0% of the value of borrowed debt for 1 year of the contract. If insurance is issued for loans for 5 years, the need for renewal persists throughout the entire period.
How much can I refund
The law does not establish what the refund of compensation will be, since each insurance contract is considered individually, and the price is calculated based on a variety of indicators. Nevertheless, a certain rule is in effect, according to which the share of the value returned to the client is calculated based on how quickly the client declares the refusal and how long he used the services of the company.
Assume the amount of insurance return on the loan in Good Bank can be based on the average cost of the client:
- life insurance – 0.3–4.0% of the cost of the loan;
- in case of an accident – up to 1.0%;
- mortgage security – 0.7%;
- from a disease in the field of oncology – 0.1–1.7%.
The following rates apply to Good Bank Insurance based on the risks included in the contract:
- comprehensive security in case of loss of income, illness, at the death of the borrower – 2.99%;
- personal insurance – 1.99%;
- determination of specific risks at the discretion of the client – 2.5%.
The larger the loan amount, the higher the cost of the policy. A simple calculation allows you to determine that with a credit line of 2 million rubles, if you choose your own risks, the borrower will have to spend 50 thousand rubles annually. In view of the significant expenses, the question of how to return insurance on a Good Bank loan is topical, when insurance is no longer necessary and the client intends to return the money spent.
Depending on the term at which they apply for termination, the amount of funds received back will differ:
- During the five-day period after the execution of the contract, it is possible to receive the entire amount paid as part of the return of the “failed product or service”.
- During the two-week period after signing the contract, the full amount is returned.
- If the period exceeds 14 days, the money will be returned only if the client managed to pay them without having a valid contract, i.e., the chances of returning after 14 days are minimal.
- When closing the credit line, including early payment, return, taking into account the calculation of the insurance period remaining unused.
Thanks to the instructions issued by the Central Bank, the procedure for returning insurance from a loan at Good Bank has become easier. From June 01, 2016, a “cooling period” was introduced in insurance, which allows you to refuse insurance with a full refund if you report your intentions within 5 days after registration. Refund occurs no later than 10 days after the submission of the application to the insurer. The only condition under which a refusal with a full refund of the cost is actually possible is the individual execution of the policy.
Thus, when agreeing on the conditions for issuing a loan, it now does not make sense to refuse insurance services, if the acceptance of an approving decision by the bank depends on them. It is enough to apply to the department within the period established by the Central Bank and return the funds paid earlier in full. For the client, accepting insurance significantly increases the chances of lending, and provides the most favorable interest rate. After issuing a loan, the client will be able to quickly issue a waiver of additional services provided individually.
In case of targeted financing for the purchase of real estate, the borrower is legally obliged to issue insurance for the collateral, therefore, it will not be possible to refuse such insurance without serious consequences from the bank.
If, for whatever reason, the borrower did not have time to exercise his right to withdraw insurance, it is possible to obtain a return within the next two weeks.
The right to a refund within 14 days after the purchase of the policy applies to all Good Bank customers, as indicated in the current edition of the agreement. Previously, this period was a 30-day period, but assumed a 13 percent deduction from the amount paid as compensation for the services of a financial institution.
According to the provisions of clause 4.1.2. loan agreement, in case of an unsigned contract, the funds transferred under the insurance connection are subject to full refund in a later period. It is difficult to imagine a situation where funds are transferred to bypass the signing of the agreement, so it is almost impossible to achieve a full refund after the expiry of the 2-week period.
The actions to return the amount paid will depend on the circumstances in which the customer refused the services of the company:
- if the refusal occurred at the very beginning of the term, it is possible to return the entire cost in full, provided that the contract was signed on a voluntary basis and is not associated with obtaining a mortgage;
- when contacting the company in connection with the closure of the credit line, the restriction on loans is lifted, and the amount to be issued to the client will be paid for the unused period of validity.
At the beginning of the loan period, it is quite simple to issue a refund – just an application, duly executed and sent to the department. Upon termination of crediting it is necessary to submit additional papers, giving grounds to demand partial compensation.
The main document required from the borrower in such situations is the application. It is compiled in accordance with accepted requirements and transferred to the department, accompanied with a certain list of related documentation.
It is possible that the insurer will refuse to transfer funds back to the client. In such a case, an additional application form should be secured, on which there will be a note on acceptance of the paper for consideration, with a further request for a written official response. If there is no response within a 10-day period, the borrower has the right to send a pre-trial claim to the bank. The success of the event depends entirely on the legal right to return and the correct alignment of the strategy of behavior.
Return Insurance Documents
You can realize the return of insurance after repayment of the loan in Good Bank on the basis of the application and submitted applications. The list of necessary documentation includes personal papers of the insured, as well as documents confirming the existence of grounds for presenting a claim for a refund.
To make an application for the return of insurance on the loan, you will need data from the main documents of the insured, copies of which are further attached to the official request.
The standard list of applications in 2018 includes:
- Borrower’s civil passport.
- Bank loan agreement (copy).
- Confirmation from the bank about the closing of the debt (with early termination) or about the unpaid amount (at the very beginning of the loan period).
Since it is important for the borrower to have confirmation of the timely acceptance of the application for consideration, it is recommended that the appeal be personally submitted to the employee. The second copy is marked on the transfer of the document to the bank. Starting from the day of notification of the refusal of services, the insurer is obliged to respond within 10 days and inform about the decision taken.
When preparing the document, it is recommended to use a sample application, which takes into account all the requirements for the details:
- On the right in the upper part indicate to whom the appeal is addressed (the name of the policyholder and the address of the company’s location).
- The following information is entered on the applicant – his full names and. I. O. and address.
- Below in the central part indicate the type of treatment – “statement”.
- Basically, the text part in any form describes the situation and the essence of the appeal itself. Pay attention to the introduction of comprehensive information on the details of the loan agreement, its validity period, the amount of debt, the payments made. Enter information about the insurance contract, the cost of services.
- Further, they formulate the purpose of the application – the return of funds, with reference to the norms of the law, the provisions of the current regulations that establish the right to receive compensation.
- For the organization of the transfer of funds contribute information on how you can issue a refund, and bank details.
You should also indicate how best the insurer to communicate with the client, specifying the mailing address and other contact information.
It is important to remember that the application will not be valid if the document is not signed by the client with the decryption and the date of preparation.
Return on early repayment
If the reason for the withdrawal of insurance becomes early repayment of the loan in Good Bank, the order of registration differs little from the client’s standard appeal for reimbursement, however there are some nuances:
- As from the moment of the conclusion of the agreement on connection to the insurance service until the full settlement with the lender, a certain period passes, this period is considered to be used, that is, non-refundable. Thus, if the borrower closes the credit line ahead of schedule, it will be impossible to get the money back in the amount of the full cost of the policy.
- The situation in case of early termination due to the termination of crediting requires an advance payment to the bank account of an amount sufficient to cover the debt obligations. This fact obliges to provide documents showing the absence of any financial claims from the lender after the repayment of the loan in Good Bank.
The urgency of the request depends on how long the unused period of insurance. If before the end of the annual policy there are very few, you should think about the economic feasibility of negotiating with the insurer the possibility of returning your money for insurance.
When receiving a refund, it is recommended to follow the following procedure:
- Thoroughly study the points of the loan agreement. In most cases, for the application of Article 958 of the Civil Code, which allows you to receive the amount for unused insurance, there are no problems. However, in some cases, the agreement contains clauses that circumvent the provisions of civil law.
- From the contract reveal the exact name of the company providing insurance services and its contact information.
- In a free form, make a statement taking into account the basic requirements for the document. It is recommended to use a sample, so as not to forget to indicate all significant points on this issue.
- Prepare photocopies of contracts and bank statements.
- The application, along with photocopies, is sent to the insurer’s office. The best option would be a personal visit to the office and the transfer of treatment from hand to hand. If this is not possible (for example, the policyholder lives far from the location of the representative office), the law permits remote filing via mailing by registered mail with an inventory and notification.
- A notice of delivery or a note on the second copy of the application will be a confirmation of the fact and time of applying for termination of the insurance contract.
- Faced with opposition from the insurer, it is recommended to contact the higher management, having prepared an exhaustive legal justification for the legality of collection.