The content of the article:
- Termination of OSAGO, reasons and features
- Documents for cancellation of OSAGO
- Application and refund
- What to do if the UK does not meet halfway
Each vehicle owner is required to have a CTP policy, but sometimes situations arise when the contract with the insurance company needs to be terminated early. In this case, you should know the basic nuances that will greatly facilitate the termination procedure, help save time and money, and also prevent the insurer from taking advantage of the car insurer's naivety to their advantage.
Termination of OSAGO, reasons and features
In theory, you can break off relations with an insurance company (IC) at any time and for no particular reason. However, in practice, this rarely happens, since it is not only difficult, but also not profitable to cancel the agreement without a good reason.
Taking into account the legislative norms, the reason for the termination of OSAGO may be:
- death of the owner of the vehicle;
- loss of t / s (due to disposal, serious accident, theft);
- sale of t / s;
- revocation of the license from the UK;
- other reasons.
Death of the owner
In the event of the death of the owner of the car, the contract with the SK is automatically canceled from the date of death. The heir only has to notify the company about the incident and provide the appropriate package of documents. You should have an identity card with you, and papers confirming your right to inherit. If there are several heirs, the money for the unused period of time will be divided equally among all.
The payment itself will be made after the relatives or persons specified in the will enter into inheritance, that is, 6 months after the death of the owner. Although the application to the UK should be submitted earlier.
Auto elimination
If the car was scrapped for any reason (for example, as a result of an accident), or stolen, then the OSAGO ceases to operate on the date of the incident. In this case, the insurance company should be presented with documents confirming the fact of elimination (theft) of the vehicle.
Selling a car
If the vehicle has been sold, the termination rules change slightly.
It is important to remember: the CMTPL agreement will be considered invalid from the moment the application is submitted to the UK, and not from the moment the purchase and sale agreement is concluded. That is, if you apply to the insurer with an application two months after the transaction was made, then the money for these two months will not be returned to you.
To terminate the insurance, you must present to the insurer, complete with the basic sets of documents, and a photocopy of the sales contract. However, some companies also require a copy of the TCP with the new owner's name in it. In fact, this requirement is unlawful and the car owner is not obliged to present the PTS. Although the UK's desire to review it is justified - some overly smart policyholders are trying to break off relations with the company by presenting fictitious sales and purchase agreements. That is, the contract was drawn up, but the car was not sold.
Other reasons
The above three reasons for terminating the insurance contract are considered valid. Companies rarely resist ending the relationship in these cases and refund money for the unused period of the policy.
If the owner needs to interrupt the insurance for any other reason (car storage for a long business trip, winter period, desire to change insurance, etc.), then the insurer may refuse to cancel the contract. And even more so it will not return the remaining money.
In this case, the motorist will have to file a lawsuit and the case, most likely, he will win. However, is the time, effort and money spent on litigation worth it? Most likely no. That is why CMTPL contracts are rarely terminated for "disrespectful" reasons.
Car sale by proxy
In this case, there is no need to terminate the agreement, since the owner remains the same. It is enough just to enter the name of the new co-owner into the policy.
Revocation of a license from the UK
As well as its liquidation, bankruptcy or illegal activities. It is also a good reason for breaking up a relationship. In theory. In practice, it is hardly possible to return funds for the unused insurance time from a bankrupt or illegal company. Is that with the temporary revocation of the license.
In any case, you should submit an application for termination to such an IC as soon as possible. Sometimes it is possible to return at least part of the money.
Documents for cancellation of OSAGO
Usually it is required to present a standard set of documents to the insurance company, but sometimes it changes depending on the requirements of a particular company. Therefore, first of all, you should find out what exactly is required in a given situation. To do this, you can go or call the UK to clarify the list of required papers.
Required documents for early cancellation of the agreement
- CTP insurance policy.
- A document proving the identity of the policyholder and the owner of the car (if they are different people).
- When the procedure is carried out through an authorized person, a document proving the identity of the authorized person of the policyholder and a notarized power of attorney are required.
- A receipt confirming the payment made by the policyholder.
- A statement asking you to cancel your insurance.
Depending on the reason for termination, other documents are added to the main package of papers.
In the event of the death of the owner:
- death certificate;
- documents confirming the right to inherit.
In case of car sale:
- contract of sale;
- PTS.
In case of loss of the vehicle:
- certificate of removal of the vehicle from the traffic police register;
- a document confirming the fact that the car was scrapped or stolen. In the event of an accident, after which the machine is unusable, instead of a certificate of disposal, you can provide a copy of the conclusion of the expert technical commission, which is issued to the traffic police.
A photocopy of the passbook is also needed in case the UK does not make cash payments, but only by bank transfer to the account.
A copy should be made of each document. Only your application and insurance policy should remain with the insurer from the originals. Possibly payment receipts. However, you must have copies of these documents in case of a dispute with the UK. All other documents are replaced with copies if the insurer decides to study them more seriously.
Application and refund
An application for termination of compulsory insurance is submitted to the UK, where the contract was concluded. All the necessary documents are attached to it.
It is important to remember: the insurance policy is considered canceled on the date of application, and not on its consideration and approval.
Usually the insurer has no claims and even returns the money on the day of application. If the company practices cash payments. In the event that the money is returned via bank transfer, the transaction must be completed within 14 days.
How much money will be returned?
In case of early termination of OSAGO, the entire amount is returned for the unused period of time minus 23%. 20% go to "production costs" - paperwork, office maintenance, salaries of employees, etc. 3% go to the development of the Association of Insurers. And 77% - for compensation for damage caused by policyholders in the event of an accident. And in our case, 77% are returned to the owner for the remaining period.
It is curious that the deduction of this 23% in case of early termination is not specified anywhere.That is, if at the time of termination there are 5 months left until the end of the policy, then 100% of the money deposited must be returned to the policyholder during these 5 months. However, ICs often reassure clients that they have every right to deduct costs. If the policyholder files a claim in court, then, most likely, he will sue his 23%. But how many people would want to spend time, effort and money for the sake of such a "trifle"? Apparently, insurers are betting on this.
Also, the company is obliged to return all funds for the unused period of the policy, if during the period of its validity there were insurance payments. Some insurers deduct the amount of the payment from the funds to be returned, but such actions are not legally justified. They are designed only for the fact that the policyholder will swallow the bait, without delving into the essence of the procedure and its legality.
It is important to remember: even in the case of existing payments for OSAGO, for the unused time you are obliged to return the ENTIRE amount deposited.
What to do if the UK does not meet halfway
The company may refuse to accept the application for termination, refuse to satisfy the client's request, or refuse to pay the balance. This usually does not happen, but the possibility exists.
In addition, the IC may “forget” to transfer money to the client's account. Therefore, if within 14 calendar days the balance of the amount has not been transferred to your account, you should immediately go to the office of the company and find out the reason. There can be two of them: the payment was lost in the process (mistakes sometimes happen) or the insurer is deliberately playing for time.
If the IC is opposed to terminating and / or returning the balance in the event of termination of the contract for a good reason, there are several things to do.
- Contact the director of the company with a corresponding complaint. If this does not work, threaten with a complaint to the Association of Insurers and a lawsuit. This is usually enough. If the firm continues to be stubborn, it should move on to more drastic measures.
- Write or apply personally to the Russian Union of Insurers (RSA). The Association regulates the activities of insurance companies, monitors their functioning and takes appropriate measures in the event of illegal or unethical activities. Let's just say, when the Association orders you to return the money, the UK will return it if it values its reputation and membership in the Association.
- You can also file a claim in court. But, as mentioned above, usually it is enough to just intimidate the insurer with a claim. Hardly a knowingly losing litigation in the interests of the company. Unless she is on the verge of bankruptcy.
When contacting the PCA or the court, you should attach copies of the documents you submitted - the OSAGO policy, payment receipts, applications. This will greatly simplify and speed up the procedure for considering the case.
The insurance company has the right to terminate the agreement for good reasons. Such reasons include the client's suspicion of fraud, the provision of false or incomplete data when concluding a contract, and other violations stipulated by law.
