Is it possible to refuse and take the money?
As with other insurance cases, the car owner has the right to refuse the CASCO agreement. There are a number of reasons for its termination:
- loss of car;
- death of the policyholder.
By providing supporting documents to the Investigative Committee, a citizen can count on a positive outcome of the case.
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Termination of the insurance contract does not mean a 100% refund of the paid insurance premium. Cases in which the consumer receives money back are specified in the insurance conditions.A
Waiver of CASCO for the second year of a car loan
Some banks do not provide a car loan without insurance and require an extended policy to be issued for the entire loan period, but in this case the interests of the borrower suffer. This concerns a large overpayment, since the cost of the car decreases every year, but this is not taken into account in the contract and you are required to pay more than expected. In case of early repayment, the amount for the policy is already included in the loan, but the service itself is not provided, which is also a significant drawback.
Therefore, it is recommended to conclude a contract for a year, after which it should not be renewed, especially if the quality of the services provided is not satisfactory. When CASCO for a car loan has already been received for the entire term, you can refuse it for the second year. How to do this? First contact the insurance company with a notice of termination of the contract. You should first find out what consequences this will have. For example, the interest rate increases or demands are made for early repayment of the loan.
When clarifying how not to pay CASCO for a car loan for the second year, you need to take into account all the conditions specified in the contract, since almost every situation is individual. Only after learning about all the consequences should you refuse the services of the insurance operator in order to avoid unwanted actions on the part of the bank.
Law
The relationship between the policyholder and the company is regulated by the Civil Code of the Russian Federation. Article 958 establishes the right of the policyholder to terminate the contract if the need no longer exists. It also stipulates one of the grounds for termination: the destruction of the insured item (car) in a situation that is not an insured event.
If such a clause is expressly stated in the insurance conditions, the return of the insurance premium is not provided. If it is not there, the citizen receives an amount proportional to the unused CASCO days.
When will the money not be returned?
Provisions for termination of the agreement are contained in the Insurance Rules. They can be found either on the company’s website or when applying for a policy.
This document may contain provisions that in case of early termination, the premium paid will not be returned to the policyholder. This point is legal and is confirmed by Art. 958 of the Civil Code of the Russian Federation. Therefore, approach the conclusion of the agreement carefully and read all the documents provided.
Another case when a unilateral refusal occurs without a refund is termination at the initiative of the insurer. Chapter 48 of the Civil Code of the Russian Federation provides the company with the opportunity to terminate CASCO insurance on its own initiative. This is done only in court.
The reasons may be different:
- non-payment of insurance premiums;
- significant change in conditions.
A citizen may not object to the termination of the policy, but he will not return the money paid for it.
Calculation of the refund amount
Typically, the amount due for refund to the policyholder is calculated as follows:
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Refund amount = (Premium – Insurance expenses)xn/N – Payments
Where,
Premium – the amount paid for the CASCO policy,
Expenses of the insurance company – funds spent by the insurance company to maintain the contract. Typically this value ranges from 30% to 50% of the insurance premium,
n – months remaining unused,
N – total term of the insurance contract,
Payments – money paid for a loss.
Example
Let’s imagine that on October 15, 2016, the policyholder decided to terminate the CASCO policy issued on February 15, 2015, for which there was one payment in the amount of 10,000. The insurance premium was 60,000 rubles.
(60000 – 30%)x 4/12 – 10000 = 3860 rubles
Thus, the client will receive 3860 rubles for the remaining 4 months.
The refund of the premium upon termination of CASCO will proceed as follows:
- Checking the correctness of filling out the application and the completeness of the package of documents.
- Calculation of the amount due for refund.
- Transfer of funds to the policyholder’s personal account, or withdrawal from the insurance company’s cash desk. This will need to be decided at the time of application.
Probable reasons for early termination
In addition to the unconditional basis for termination of the contract in the form of loss of a car, there are other reasons. However, the refund will be made based on the elapsed insurance days.
When selling a car
Changing the owner of the car involves terminating the contract with the old policyholder. In these circumstances, the former owner can apply for early termination of the policy or sell the car along with CASCO.
Death of the policyholder
In this situation, similar to the first reason, a change of owner occurs. Not as a result of selling a car, but by inheritance. The heir can contact the insurance company and terminate the agreement due to the death of a party or reissue the policy for himself.
License revocation
Insurance activities on the territory of the Russian Federation are carried out only after obtaining a license. If it is revoked, the insurer has the right to demand early termination of the contract. It must be terminated from the moment the license is revoked by the regulatory authority.
For other reasons
There may be other grounds for termination of the policy. However, all of them must be associated with a change or cessation of the existence of one of the parties.
Early termination of the CASCO agreement
Early termination of a CASCO policy is a process of changing the validity period of the contract, upon reaching which it ends.
For example, a CASCO policy was issued on October 12, 2015. It will be valid until October 11, 2016, that is, exactly 1 year. If the policyholder has a need to terminate it on March 14, 2016, then this will be considered early termination. But after March 14, 2016, the vehicle will no longer have full insurance coverage.
Termination and refund of premium
As stated in Art. 958 of the Civil Code of the Russian Federation, an unconditional decision to cancel the CASCO agreement and return the premium is the case of destruction of the subject of the agreement for reasons that are not an insured event.
In this case, a full refund of the amounts paid is provided. This is the only basis that allows you to return all the money spent. Since in other situations that are the reasons for termination of the insurance agreement, the item does not perish.
Important: the list of insurance cases varies depending on the company. They must be clarified at the time the agreement is concluded.
When the owner of the car changes, the insurer always meets halfway and terminates the contract. In this case, not the full amount is returned, but only part of the money. If the sale occurs before the dues have been paid in full, a very small amount is returned to the former owner. And the amount of time spent collecting documents to cancel car insurance clearly exceeds it.
In this case, it will be easier and more profitable for the parties to change the owner of the car in CASCO. This possibility is provided for in Art. 960 Civil Code of the Russian Federation. Then all rights and obligations under the agreement are transferred to the new owner of the car, including payment of the remaining insurance premiums.
Information: the new owner must immediately contact the company with an application to change the insured.
Reasons for refusing a refund
If you cancel CASCO early, you will not always be able to get your money back. However, in order not to get caught illegally refusing to pay damages, you need to know exactly the reasons why the company is allowed to resort to such a decision. There are four in total:
- As a result of an accident that occurred on the eve of the termination of the policy, the car completely lost its integrity (including structural integrity), due to circumstances not provided for by the insurance contract;
- The company providing vehicle protection has gone bankrupt or lost its license;
- The client died before the end of the agreement period;
- The reason for the cancellation of the document was the change of owner of the car.
In other cases, the institution cannot refuse to pay unused funds. Otherwise, the citizen will reserve the right to sue him.
We found out whether it is possible to return money for CASCO when selling a car, and what sample should be used to fill out an application for the mentioned procedure. In conclusion, we would like to add that before refusing comprehensive insurance, it is better to consult with lawyers in advance about the possibility of kickback of funds. After all, such companies do not always comply with the law. Not every driver is able to protect himself from deliberate deception on his own.
Procedure for termination
To refuse insurance and return the amounts paid, the car owner contacts the insurance company directly.
There you must submit an application and a package of documents confirming the lack of need for insurance.
Statement
First of all, a statement is written with a refusal of CASCO and a requirement to return the money in proportion to the past days of insurance.
A sample document can be found on the company’s website or you can fill out the form directly on site. The application is made in free form. The policyholder's details must be indicated, including the postal address and contact telephone number.
The application itself must indicate the citizen’s intention to cancel the car insurance contract with reference to the reasons. The occurrence of the grounds for termination of the agreement must be documented. Only in this case the insurance company will agree to termination.
The application must contain a request to return the unused portion of the premium. Indicate the desired method of receiving funds: cash or transfer to a bank account. The second option involves leaving the details for the transfer.
Please note: you do not need to calculate the amount to be refunded yourself. If the company decides to terminate the agreement, it will calculate the amount of payment independently.
Documentation
Along with the application, a standard package of supporting documents is provided:
- identification document of the owner of the car;
- an insurance policy that a citizen wishes to cancel;
- receipts for payment of contributions in full;
- technical passport of the vehicle.
The following documents are attached to confirm the occurrence of grounds for termination of the agreement:
- purchase and sale agreement in case of transfer of ownership of the car to another person;
- a copy of the new owner's title;
- a certificate issued by the traffic police about the death of the car in an accident;
- in case of theft - documents confirming it, for example, a statement to the police, a resolution to initiate a criminal case on this fact;
- death certificate of the policyholder.
Details for transferring funds can be attached additionally or simply indicated in the application.
Who and where should I contact?
Having collected the necessary package of documents, the car owner must contact the branch of the insurance company in his region.
This can be done in person or using postal services. When directly transferring documents, you must have a second copy of the application with you. A company representative will mark it as receipt.
When sending documents by mail, choose the method of sending by registered mail with acknowledgment of receipt. In this case, it is possible to track the date of its delivery to the addressee.
Remember: the original documents remain in the hands of the policyholder. They will need to be provided for verification only at the request of the insurance company.
If the insurer refuses to terminate or return the unused part of the insurance premium, its actions are subject to appeal in court.
Chances of the parties in court
To protect your interests in court, it would be better to use the services of professional lawyers. They will study the documents and tell you whether there is a chance to return the money in each specific situation.
There are cases that the amount to be returned is significantly less than the costs of the trial. In this case, appealing the insurance company’s decision is unprofitable for the citizen.
In addition, insurance company lawyers prepare such standard contract forms that it is not easy to prove their case in court. Therefore, it is important to carefully study the contract at the stage of signing it and clarify all unclear points.
Documents for early termination of CASCO
If you intend to carry out early termination of CASCO, you must provide the documents necessary for the procedure to the insurance company along with a written application. It must contain information such as the full name of the owner of the insurance, the insurance policy number and the date of termination of the contract.
The application can be obtained from the insurer or written by hand. Along with it you must provide the following:
- Original CASCO policy.
- Payment receipt.
IMPORTANT!!! It is not necessary to submit original documents to the insurance company. They can simply be presented as proof that they exist and that the policyholder has paid for everything. It will be enough to attach only copies.
After the application is accepted by an authorized employee of the insurance company, your policy will be checked against the database for the presence of arrears in payment of the insurance premium. If none is found, the documents are submitted to calculate the amount to be returned to the policyholder.
But there are some nuances here. Of course, the insurer cannot fail to return part of the premium for unused months of the CASCO agreement, but the methodology for calculating this amount may differ from company to company.
How is the payout calculated?
If the reason for termination of the policy was not the loss of the car, then a partial amount is returned to the policyholder. It is calculated in proportion to unused days of insurance.
CASCO calculator
You can calculate the refundable amount yourself. To do this, you need to divide the cost of the policy minus 23% by the number of days until the insurance expires. The fee paid by the company to the Russian Union of Auto Insurers, as well as a commission for conducting business, is deducted from the cost of the policy.
How can you reduce losses?
Typically, car owners agree on the amount of payment. However, charging a fee for handling a case from the policyholder is illegal. This amount can be challenged in court.
Useful video
A case from one's life:
Dear readers! To solve your problem right now, get a free consultation
— contact the lawyer on duty in the online chat on the right or call: +7 (499) 938 6124 — Moscow and region.
+7 (812) 425 6761 — St. Petersburg and region. 8 (800) 350 8362 - Other regions of the Russian Federation You will not need to waste your time and nerves - an experienced lawyer will solve all your problems! Or describe the situation in the form below:
