Under standard conditions, it is issued for a period of 1 year. In this case, the amount of the insurance premium is paid in a single payment.

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What to do if the car was sold during the validity of the motor vehicle license? Is it possible to get back the money spent on purchasing car insurance?

May be terminated early. Read on to find out how to terminate the contract and what documents are required for this.

What documents need to be provided?

Early termination of a car insurance contract at the initiative of the policyholder is possible in the following situations:

• the insured vehicle has been sold;
• the car is scrapped;
• car stolen;
• the owner of the vehicle died.

To terminate the contract before the due date, the car owner must prepare a package of documents, which includes:

• passport or other document confirming the identity of the policyholder;
• original car insurance contract;
• original receipt for payment of insurance premium;
• contract for the sale and purchase of an insured vehicle.

Some insurance companies additionally ask to provide a copy of the car's title with a note about the change of owner, but such a requirement is illegal. The fact of the sale of the car can be confirmed by the relevant agreement.

If the car owner is terminated for other reasons, then the package of required documents changes. For example, after disposal, the insurance company will need to provide a corresponding report.

Drawing up an application

Termination of the MTPL agreement is carried out upon a written application, to which the necessary documents are attached.

must contain:

• name of the insurance company to which the document is sent;
• Full name of the policyholder with whom the contract was concluded;
• details (series, number, date of issue) of the current motor vehicle policy;
• reason for termination;
• method of receiving funds (receipt to the policyholder's account, receipt of cash at the insurance company's cash desk or payment of an insurance premium under another agreement);

If funds are intended to be transferred to an account, then the bank details for which the transfer must be made are additionally indicated. If the remaining part of the insurance premium is credited as payment for another policy, then the details of the insurance contract are indicated.

• list of attached documents.

The document is signed by the applicant and a representative of the insurance company. In addition to the signature, the application must contain the date of preparation and the date of acceptance.

An application for termination of an MTPL agreement earlier than the period specified in the agreement can be submitted:

• in person at one of the auto insurer’s offices;
• by registered mail sent via Russian Post. The letter must be sent with acknowledgment of receipt and a detailed list of enclosed documents.

The procedure for terminating the MTPL agreement when selling a car

The procedure for early termination of a compulsory motor insurance contract is regulated (dated September 19, 2014).

The documents describe in detail:

• situations in which there is a possibility of early termination;
• rules for terminating an insurance contract;
• rules for calculating and returning part of the insurance amount.

Each insurance company is required to fully comply with the requirements of the current legislation.

How to terminate the contract? Let's look at the procedure using specific examples.

Termination of the MTPL contract at Rosgosstrakh can only be done in person at the nearest office of the company, after submitting an application with attached documents.

The contract can also be terminated:

• the owner of the car who is the policyholder;
• another person acting on the basis of a power of attorney issued by the owner of the vehicle.

You can only terminate contracts that are valid for 1 year. Agreements concluded for the transportation of cars to the place of registration are not subject to termination.

For the termination procedure you must:

• prepare a package of documents, the composition of which depends on the reason for termination of the contract. If the termination is made in connection with the sale of a vehicle, then a passport, an insurance contract, a receipt for payment of the insurance amount and a car sale agreement will be required;
• apply. The document form can be obtained directly from the company's office. The application must provide only truthful information.

If fraud is detected on the part of the policyholder, the insurer has the right not only to refuse to provide the service, but also to inform law enforcement agencies.

The funds, which make up part of the unspent insurance premium minus 23% aimed at paying off expenses associated with maintaining the insurance business, are returned to the policyholder after 15 days from the date of filing the application.

Funds can be transferred to the bank account of the policyholder (the policyholder's representative). Cash payment is not provided.

To terminate a binding contract you must:

• inform the company of your intention to terminate the contract early by telephone. An employee of the insurance organization will advise the client on the procedure and inform what documents will be required to complete the operation;
• prepare a package of required documents;
• go to the company’s office and submit a written application for early termination, indicating the reason for the action and details for transferring funds.

The application can be submitted personally by the owner of the insured vehicle or his representative acting on the basis of a power of attorney.

The unused portion of the insurance premium can be transferred:

• to the car owner's bank account;
• to the representative's bank account. To credit funds to the representative's account, an additional power of attorney is required, which indicates the possibility of receiving an insurance premium. The document must be executed by a notary.

The insurance company has 14 days to calculate the refund amount and carry out the operation.

Refund of insurance premium

The insurance premium is refunded within 14–15 days after submitting an application supported by documents.

The insurance premium to be refunded is calculated using the formula:

S = (P – 23%)*(N/12),

23% is part of the insurance premium, which is used to conduct the insurance business, and:

For example, the cost of the policy upon purchase was 8,200 rubles. The insurance policy was purchased in October and the vehicle was sold in February.

3 days after the sale (also in February), an application for termination of the insurance contract was submitted:

S = (8200 – 23%)*(7/12) = 3,683 rubles 17 kopecks.

The most popular questions asked by car insurers regarding refunds:

1. Is it possible to receive part of the insurance premium upon termination of the contract if the insurance company made insurance payments during the period of use of the vehicle?
   The insurance payment is paid to the car owner under the terms of the concluded contract for compulsory car insurance and is not a reason for refusing to return the insurance premium upon termination.
2. What can you do if the funds were not transferred to the car owner at the specified time?
   First of all, you need to contact the main office of the insurance company.

Perhaps the problem of debt formation lies in the incorrect work of the organization’s accounting department.

If the insurance company refuses to refund your money, you can:

• file a complaint with the RSA. When filing a complaint, you must describe in detail the reasons for termination of the contract and the deadline for filing the application, as well as attach all documents to verify the information;

Obliges every owner and driver of a vehicle to enter into and purchase an insurance policy.

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Operating a car without an insurance policy is a gross violation of the law, and the offender may be subject to administrative liability.

Of course, having an insurance policy is mandatory for all drivers, but in practice there are cases when it becomes necessary to terminate the concluded insurance contract.

Current legislation states that the policyholder has the right to terminate the insurance contract before its expiration date. When can the policyholder take advantage of this opportunity, and how can this be done?

Possible reasons

In practice, termination of an insurance contract at the initiative of the policyholder can be carried out for several reasons.

For example, the policyholder may terminate the insurance contract early in order to enter into a similar agreement with another insurance company.

In practice, the most common reasons for terminating an insurance contract at the request of the client are the following:

• sale of vehicle– as a rule, an insurance contract is concluded for a fairly long period of time, during which various changes may occur. In particular, the car can be sold to another person. In this case, the former owner of the vehicle may terminate the previously concluded insurance contract early;
• vehicle theft– in this case also the owner of the vehicle can terminate the agreement early. This is the basis provided for by current legislation. But in this case, it is also necessary to present documents that prove the fact that the vehicle was stolen;
• complete damage to the vehicle– in practice, there are cases when for some reason the car was so damaged that it cannot be restored. In this case, the car must be scrapped.

Accordingly, if there is a disposal certificate, the owner of the vehicle can terminate the previously concluded insurance contract.

These are the most common reasons for termination of an insurance contract. But besides them, the policyholder can also refuse the contract if the insurance company’s license, which was granted to carry out the relevant activity, is revoked.

The contract can also be canceled due to the death of the owner of the vehicle or due to the closure of the company that owned the car.

The legislation also makes it possible to terminate an insurance contract early at the initiative of the insurance company.

In particular, the company may refuse to provide services if it turns out that the policyholder provided false information or documents during the conclusion of the insurance contract.

How to write an application

The application is the basis for starting the relevant process. It can be presented either directly to the insurance company or by sending a registered letter.

In this case, you need to know that the application must be signed by the owner of the vehicle or his authorized representative.

In the latter case, it is also necessary to present a power of attorney from the representative, which must indicate all his powers.

If the owner of the vehicle has died, then his heirs can submit an application.

The text of the application must include the following information:

• details of the insurer to whom the application is submitted;
• applicant details (full name, address, passport details);
• insurance policy number;
• reason for canceling the contract;
• request for a refund;
• convenient return method.

The application must also indicate a list of documents that are attached to the application.

When presenting it, it is also necessary to remember that the applicant cannot always count on the return of part of the insurance premium.

For example, if the refusal of an agreement is due to the fact that the applicant intends to enter into a similar agreement with another company, then in this case the insurance premium is not refundable.

If the reason for refusal is valid, then in this case part of the unused amount must be returned.

The application must indicate a convenient way to receive funds. In particular, the applicant can receive the amount either in cash or by bank transfer.

In the latter case, you must indicate the bank account number to which the funds should be transferred.

If the applicant decides to send the application by mail, it must be sent by registered mail with acknowledgment of receipt.

Below is a sample application form:

Required documents

As mentioned above, when submitting an application for cancellation of the contract and for the return of funds, it is also necessary to provide a certain package of documents, a list of which must be indicated in the application.

The required papers include the following:

• applicant's passport;
• the agreement that was concluded between the policyholder and the company;
• a receipt indicating payment of the insurance premium;
• other documents, the list of which depends on the reason for the refusal.

Depending on the situation, a certain list of documents may be required. For example, if the refusal of the agreement is due to the fact that the vehicle was sold, then it is necessary to present a contract of sale.

If the car was stolen, then it is necessary to attach to the application the decision of the authorized state body to initiate a criminal case.

If the car has become unsuitable for further use, then it is necessary to attach to the application a certificate indicating that the car was disposed of, as well as an expert’s conclusion that the car could not be repaired.

If the reason for refusal is the death of the owner, then it is necessary to present a copy of the death certificate, as well as documents confirming that the applicant is the heir of the policyholder.

If the policyholder was a company, then it is also necessary to provide constituent documents. And if his representative acts on behalf of the policyholder, then you need to have the appropriate power of attorney and the representative’s passport.

The procedure for early termination of the MTPL contract at the initiative of the policyholder

When canceling an insurance contract, you must follow a certain procedure.

In particular, for this you need:

1. Collect the entire package of necessary papers.
2. Submit an application.
3. Wait for a response from the insurance company.

If the reason for refusal is valid, then the applicant can count on the return of part of the unused insurance premium. The amount to be refunded depends on the time of submission of the application.

For example, if the applicant canceled the contract in the 5th month of its validity, then the insurance company is obliged to return the money for 7 months (if, of course, the contract was concluded for one year).

The current legal regulation states that the insurer must return the money to the applicant within 14 days of receiving the application. It is important to know exactly when the application was received.

There is no problem with this when it was presented directly at the company branch. If it was sent by mail, then you must wait for notification of its receipt.

You also need to know that the insurance company issues a corresponding certificate, which indicates information about the insurance contract (including the policy number).

This document may be needed, for example, when purchasing a new vehicle or when concluding a new insurance contract. The certificate must be delivered to the policyholder within 5 working days from the date of his application.

Upon receipt of the application, the insurance company must either return the money or provide a reasoned written refusal.

In practice, insurance companies very often refuse an applicant due to an incomplete package of documents.

In this case, the applicant can collect the missing documents and submit the corresponding application again.

If, after the expiration of the period specified by law, the insurance company has not responded or refused to satisfy the application, then the client can appeal its actions in court.

To do this, you must submit a statement of claim to the court. But when drawing it up, it is necessary to take into account all the mandatory requirements of procedural legislation.

A refund

As mentioned above, the policyholder can receive money if the reason for the refusal is valid.

If the policyholder refuses the contract in order to conclude a contract with another insurer, then in this case the amount cannot be returned.

It is also necessary to remember that only the unused portion of the insurance premium is returned. Accordingly, it is advisable to submit an application as soon as possible after the grounds for refusal arise.

For example, if the car was sold, then it is necessary to submit an application immediately after the conclusion of the purchase and sale agreement.

The applicant can receive funds either in cash or by bank transfer. The most convenient way to receive funds must be indicated in the application.

Basically, all insurance companies prefer to transfer funds to the applicant’s bank account, since upon receipt of cash, they are issued through the company’s cash desk.

What problems may arise

In practice, problems related to the return of funds very often arise. Basically, this is the basis for filing a claim in court.

Many insurance companies try to refuse refunds. If, in the opinion of the applicant, the actions of the insurer are illegal, then he can file a claim in court.

A statement of claim is a procedural document that must be drawn up in accordance with the requirements of current legislation.

The MTPL agreement in the Russian Federation is mandatory for car owners - without it you cannot get behind the wheel. However, it happens that the owner no longer needs the paid OSAGO policy and collects dust somewhere on a shelf until its expiration date. Here the question arises: is it possible to terminate the contract with the insurance company ahead of schedule? It should be noted that termination of the MTPL agreement in advance, without explanation, is possible at any time, but it will not be possible to reimburse the funds spent on the conclusion.

How to get money after termination of a compulsory motor liability insurance agreement

The client of the insurance company can receive back part of the funds spent on obtaining the policy in certain cases:

• The insurance company has been deprived of its license. Under this condition, the policy, even if it remains in the hands of the motorist, will lose its validity. For this reason, the contract must be terminated as quickly as possible, because an insurer without a license will try to quickly admit its bankruptcy. The driver has every right to a refund, but will not be able to claim it from a bankrupt company. It is only important that the insurance company enters into an agreement with a valid license, and then loses the latter.
• When selling a car. After selling the car, the old owner will not be able to give his policy to the new one. The contract from the previous owner was concluded in his name, it will not be valid in the wrong hands. Therefore, after selling your car, it is advisable to immediately contact the insurance company and terminate the contract based on the transaction. It is important to remember that the amount of compensation directly depends on the period of the car owner’s application for termination of the MTPL agreement. The countdown of the unused policy period begins from the moment of application, and not from the moment of termination of ownership of the car.
• After an accident or other circumstances, the car cannot be restored. Insurance is designed to compensate the owner for money lost to repair the car. If events occur to the vehicle that completely destroy it, the MTPL agreement may be considered invalid - after all, the vehicle for which the policy was issued no longer exists. In this case, the policy owner is free to terminate the contract with a refund of the funds spent.
• The owner of the car died. The MTPL contract is concluded for a specific driver and a specific car; if one of the parties is absent from this scheme, the policy automatically becomes invalid. To terminate and receive compensation, relatives of the deceased can contact the insurance company with the presentation of a death certificate.

Who can receive compensation

Standard MTPL agreements indicate a list of persons entitled to receive compensation upon termination (clause 34).

• Vehicle owner;
• The person in whose name the MTPL agreement is concluded, provided that he is the owner of the vehicle;
• An insured who has a power of attorney from the owner of the vehicle, certified by a notary;
• Legal heirs of the owner of the vehicle.

When to contact your insurer

If the car owner decides to independently terminate the MTPL agreement on one of the grounds provided for by law, the rule applies: the faster the appeal occurs, the greater the compensation.

If relatives of the deceased owner apply for compensation, urgency does not make any sense. Compensation is paid from the date of death of the owner of the vehicle, and not from the moment of contacting the insurance company.

Documents for terminating the MTPL agreement

When contacting the insurance company, the car owner must have the following documents with him:

• MTPL policy and receipt of payment;
• A copy of the certificate of sale of the vehicle (if available);
• A copy of the technical passport of the sold car (if available);
• Passport of the owner of the vehicle, or a copy thereof;
• If the car is scrapped - a certificate of deregistration of the vehicle;
• Death certificate of the owner (in case of his death).

Amounts of compensation after termination of the MTPL agreement

The car owner can calculate the amount due for refund from the insurer even before going to the company, using the following formula:

(A-20%)*(B/12)=amount of compensation.

Wherein:

• A – the initial cost of obtaining the policy;
• B – number of months unused by insurance.

This formula is also valid for cases where insurance payments have already been made.

Terms of return of compensation

If there are grounds for payment of compensation, usually there are no claims from the insurer. Often compensation is paid immediately after the provision of papers from the owner of the vehicle. If the insurance company does not practice cash payments, the client will be asked to provide his current account, to which the funds will be transferred within 2 weeks.

If payment is delayed by more than 14 days, the client can make claims to the insurer, which will make it possible to find out the reason for the lack of payment. In most cases, compensation does not come solely due to technical delays or human factors. But it happens that the insurer refuses to pay compensation under a terminated MTPL agreement on principle. If it becomes known for certain that after applying for termination of the contract, the insurance company is not going to pay the penalty, you should go to court.

Reasons why an MTPL agreement should not be terminated

Drivers who have a compulsory motor liability insurance policy and have not been involved in an accident during the entire period of its validity are entitled to bonuses. If insurance has never been used, a pleasant discount is awarded for the subsequent conclusion of a compulsory motor liability insurance contract.

For example, if a car owner decides to sell his vehicle and buy a new one, and there is little time left until the end of the validity period, then receiving compensation is not as profitable as getting a discount on the purchase of a subsequent policy.

The insurer withholds 23% of compensation

Tariffication of rates in insurance contracts provides for a premium to the insurer for conducting a transaction in the amount of 23% of the payment amount.

Unscrupulous insurance companies sometimes try to deduct this percentage from compensation under compulsory motor liability insurance, although we are talking about really small amounts relative to the cash flow of the insurance company. There can be no disputes on the part of the insured - the rules for concluding MTPL contracts and the Civil Code of the Russian Federation do not establish a percentage deduction from compensation upon termination of the contract.

Do not forget that the insurer cannot deduct 23% from the compensation amount - otherwise the policyholder can safely go to court and win the case with 100% probability.

Important nuances

Why can’t a contract with compensation be terminated at the driver’s request?

Not all motorists are happy with the MTPL law, which establishes the right to terminate a contract with compensation in strictly defined cases. After all, the desire to terminate the contract may arise due to many other circumstances: a citizen has temporarily stopped driving a vehicle, or he does not like the insurer, the car has broken down, etc. Why can't I get compensation?

The rules for concluding an MTPL agreement state that the driver has the right to terminate and receive compensation not only in the above cases, but also in others provided for by the laws of the Russian Federation. Most car owners shrug off these circumstances and adhere to generally accepted rules, but the most stubborn ones prove their case in court. These cases are isolated, but make it clear that the policyholder can terminate the contract and get his money back even if guided by his own desire.

Why does the policyholder require a copy of the PTS?

Some insurers require the owner of the vehicle who sold his car to provide a title with a note about the new owner. This requirement is unlawful - after selling the car, it is enough to provide a certificate-invoice indicating the fact of sale.

Insurance companies are well aware of the illegality of their claim, but continue to make it for one simple reason. Wanting to break the MTPL agreement, some car owners simply ask their friends to draw up a sales agreement, but the vehicle remains with the old owner. The PTS can reflect the true state of affairs through a record of the new owner. However, no one can force the car owner to provide a copy of the treasured paper.

Terminating an MTPL agreement is not always easy, and the laws regarding this issue contain many ambiguous clauses, which each party can interpret at its own discretion. Legal proceedings regarding termination of cooperation with insurers most often end in favor of car owners, but in most cases the latter do not want to bother so much because of the modest amounts of compensation.

Driving vehicles in Russia without a valid MTPL policy is strictly prohibited. Such travel on the road may result in a fine. However, in some cases there is no need for insurance. The driver has the right to return the overpaid amount. How to do this, in what amount a refund is allowed, about the important points of terminating the MTPL agreement in this material.

In what cases can you terminate the MTPL agreement and return the money?

Situations in the event of which it is possible to return the paid insurance amount in part or in full in connection with the early termination of the MTPL agreement are provided for by regulations:

• Article 10 of the Federal Law “On compulsory insurance of civil liability of vehicle owners”;
• clause 1.13-1.16 of Bank of Russia Regulation No. 431-P dated September 19, 2014 “Rules for compulsory insurance of civil liability of vehicle owners.”

Refunds are allowed in specific cases:

1. death of the owner of the car or the person driving the vehicle, with compensation in favor of the heirs or interested parties;
2. deprivation of an insurance company's license;
3. termination of the activities of the insurer providing services under the MTPL policy, liquidation of the legal entity;
4. loss of a vehicle due to theft based on a statement to law enforcement agencies, or its destruction in an accident, arson and other circumstances, as established by the traffic police act;
5. sale of the mechanism, registration of the contract with the road service;
6. due to circumstances beyond the control of the parties to the agreement, in accordance with clause 1.13 of Bank of Russia Regulation No. 431-P dated September 19, 2014.

In what cases is it inappropriate to terminate a contract?

In some situations, terminating a relationship with an insurance company will not bring financial benefits. Refunds of the remaining amount of the insurance premium until the end of the validity period are not carried out:

• if the policyholder provided unreliable or incomplete information when concluding the contract;
• when traveling to another region for work or place of residence, if the car will be idle and not used for its intended purpose during the specified period;
• if the insured company is liquidated due to the end of the bankruptcy procedure, and if the assets of the enterprise do not have enough funds to cover all debt obligations;
• when the amount to be refunded is small, if, for example, it is 100 rubles, then the cost of travel to the office of the insurance company, resolving claims and possible litigation will not be financially feasible;
• if the right to receive a discount when taking out a policy for the next period is lost due to accident-free driving or service in one organization for a long period;
• in cases where the policy expires within a few days, the payment will be insignificant.

How to get money back for unused MTPL insurance?

According to clause 4 of Article 10 of the Law on Compulsory Motor Liability Insurance No. 40-FZ, a refund of unused car insurance is possible upon early termination of the contract. Compensation is made for the unexpired period. The calculation is made from the moment the application is submitted, and not when the vehicle is retired from use. This can happen not only due to a change of owner when selling a car, but also due to death or damage or loss of the vehicle.

Expression of the policyholder's desire to terminate the contract without specifying the grounds specified in the Federal Law on Compulsory Motor Liability Insurance is not sufficient for the return of compensation. Payment is made when contacting the insurance company before the expiration of the policy period. The sooner the interested person submits an application, the greater the amount of payments will be in accordance with Article 34 of the MTPL Rules.

What documents are needed to return MTPL insurance?

The set of documentation for receiving refunded funds is quite simple:

• application - filled out according to the form of the insurance company where the contract was concluded; there is no unified template established by law;
• copy and original of the car owner's passport;
• OSAGO policy;
• a purchase and sale agreement for the sale of a car, a notarized certificate of inheritance, a traffic police act on the destruction of a vehicle, a resolution of law enforcement agencies to initiate a case of theft, other documents confirming the disposal or damage of a vehicle;
• bank account details for depositing funds;
• certificate of deregistration of the vehicle.

Documentation must be provided in duplicates and originals to verify authenticity. The latter are returned to the owner after checking by the manager.

How to calculate the refund amount under compulsory motor liability insurance?

The legislation provides for the return of part of the paid insurance premium for the entire unused period of validity of the MTPL agreement in connection with its early termination.

The rules for the return of insurance premiums are described in detail in the above paragraph 10 of Article 4 of the Federal Law “On compulsory motor third-party liability insurance of vehicle owners.” They indicate that the transfer is made in favor of the policyholder:

1. parts of the amount for the unused period in days;
2. share of the insurance premium for the non-starting season due to the lack of need for a service to compensate for the risks of adverse consequences when driving.

For different situations, the term for termination of the contract will be different:

• in the event of the death of the vehicle owner - the day of death;
• when selling a car - on the date of the former owner’s application to the insurance company;
• upon liquidation of an insurance company - from the date of entry into the register of legal entities;
• in case of loss or destruction of a car - upon establishment of this fact on the basis of an order from an authorized government body.

Important: The Bank of Russia has established that it is used to compensate for current expenses. only 77% from the insurance premium paid. The remaining 23% is used for other purposes and will not be returned when the payment is returned due to early termination of the contract.

Thus, the calculation is made based on the number of days or season.

For example, if the insurance is valid for 1 year, if the MTPL contract is terminated a month before its termination, then the return premium will be calculated based on 30 days of the last period.
At a cost of 10,000 rubles, the number of days in a year is 365, the premium amount per day will be 27.39 rubles. For 30 days the amount is 821 rubles. Of these, 23% is deducted, resulting in a refund of 77% of the specified amount in the amount of 632.17 rubles.

Procedure for terminating the MTPL agreement

You can refund the amount paid in full or in part by contacting the insurance company that issued the policy. To do this, it is enough to submit an application for termination of the contract with a set of documents confirming the existence of grounds for crediting back the payment.

The whole process includes several stages:

1. Copying of documentation - the policyholder’s passport, purchase and sale agreement, extract from the traffic police, acts of law enforcement agencies and other supporting papers, compulsory motor liability insurance policy.
2. Filling out an application on the form provided by the insurance company. One copy remains with the manager, the second is signed by him, and the date of acceptance is indicated with the incoming number.
3. The time frame for review will be communicated. It is also possible to send a package of documents confirming the occurrence of circumstances for terminating the contract by Russian Post by registered mail with an attachment. Alternatively, the procedure is carried out by proxy by an authorized person.
4. Refunds are made to a bank account or in cash at the branches of the insurance company. A debit card number is not always enough to carry out a monetary transaction.

How to get money back for unused electronic MTPL insurance?

It is not possible to make a refund online for a policy issued online. The application must be sent by mail with supporting documents or submitted in person at the company’s office. This can be done by the policyholder himself or by his legal representative by power of attorney. The application will need to be accompanied by a printed policy in an electronic version indicating the number and date of issue.

How quickly will the company return the funds?

According to the law, 14 days are given to transfer money to the policyholder in connection with termination of the contract. The calculation of the period is specified in Bank of Russia Regulation No. 431-P dated September 19, 2014:

• after the date following the provision by the insurer of information on the termination of the MTPL agreement - clause 1.13 of the specified Rules;
• from the day following the submission of an application about the absence of the need to use the policy - clause 1.14;
• on the next date after the insurer sends a notice of termination of the contract - clause 1.15.

Some organizations practice issuing money immediately at the cash desk in cash on the day of contacting the insurance company.

If refusal, then why?

In some cases, the insurer may consider the circumstances of termination of the contract to be biased for the return of funds. The basis for this may be the absence of a reason for terminating the MTPL policy. Refunds are also not made in the following cases:

1. reporting false information when drawing up a contract in order to minimize the cost of paying for an insurance policy - reducing the number of horsepower, engine volume, false information about the driving experience of persons admitted to driving;
2. the end of the contract period - often they apply for a refund after the termination of the policy, but the refund is made from the date of submission of the application, so a refusal will follow;
3. when falsifying documents, for example, on the sale of a vehicle, in order to minimize payments;
4. when reporting inaccurate information on a bank account to which the money should be returned, belonging to another person, not the policyholder.

Important: Car owners should immediately apply for termination of the contract if the circumstances for this have already arisen. Otherwise, the refund will be carried out from the date of application, which means a loss of money and time.

Refusal to terminate the contract and return the amount over the used policy period can be appealed to the court within 3 years from the moment such circumstances arose.

1. When terminating the contract, it is advisable to adhere to the following recommendations:
2. Before submitting an application, you must make a calculation of the funds due for refund. Please note that the calculations use a coefficient of 77%. Insurance companies send 23% to mandatory contributions and it is not possible to return this money.
3. Most insurance companies practice transferring funds to bank details if a positive decision is made. Cash refunds are extremely rare. In this regard, it is necessary to take care of the availability of an account in advance before contacting the insurance company with the corresponding application.
4. If the insurer refuses to return the funds, then you can appeal the actions to the Prosecutor's Office, the Russian Union of Auto Insurers, or the court. For illegal actions, a fine will be imposed if the organization is brought to administrative responsibility.
5. When you plan to obtain a policy from the same insurance company for a new OSAGO or CASCO car, you can indicate in your application that the remaining payment amount will be offset. Insurance companies are usually more willing to accept this option than to return funds in cash or on account.
   The refund is carried out taking into account the direction of 3% of the insurance premium to the Russian Union of Auto Insurers and 20% to cover the reserve; this part is not counted towards compensation. This reveals a contradiction with current civil legislation, since compensation for the unused period is due in full. The insurance company's refusal for this reason can be appealed to the court. In practice, such cases are resolved in favor of the plaintiffs.
6. Money can only be returned directly to the policyholder. If the car is alienated, the agreement on the receipt of funds by the buyer will be void. He will be denied payment. Otherwise, he must provide a notarized power of attorney to exercise powers on behalf of the seller, including to conduct financial transactions and receive funds to fulfill legal requirements.
7. An application for compensation can be submitted to the insurance company by the heirs, also in terms of receiving money into their accounts in proportionate shares, upon presentation of a certificate from a notary on the acceptance of the property. Such a document is issued 6 months from the date of death of the testator.

In this material you will find detailed answers to all questions regarding the return of insurance money.

Possible reasons for termination

You can cancel your car insurance in various situations. The list of reasons is presented in the MTPL rules. According to this document, the car owner can terminate the contractual relationship with the insurer and return the money in the following cases:

• liquidation of a car insurer;
• deprivation of the license of the insurance company providing services;
• death of the policyholder or owner of the vehicle;
• a serious accident or other reason that led to a complete technical malfunction of the car. The car cannot be restored;
• termination of ownership of the car;
• other cases provided for by law.

In the first two situations it is very difficult to defend your position. In practice, car owners may face lengthy litigation and serious delays in payments.

When can you not receive money?

It is impossible to return money for insurance in the following situations:

1. When deciding to terminate the contractual relationship on your own initiative, but not due to the liquidation of the auto insurer or a change in the owner of the car.
2. If the auto insurance company detects the transmission of deliberately false data.

Payment terms

The money is given to the car owner at the cash desk or sent to a bank account. You can hope to receive the required amount in cash early. For example, a few days after receiving a written application. If a cashless payment is made, the procedure will take a maximum of 2 weeks.

Who is the money paid to?

The rules for terminating the MTPL agreement allow payments to the following persons:

• to the car insurer;
• to the authorized representative of the car insurer with a document certified by a notary;
• to the legal heir if the auto insurer dies.

The owner of the vehicle does not have the right to return the money if he did not enter into an agreement.

About the required documents

To terminate compulsory motor liability insurance, the following documents are required:

1. An application filled out on the insurance company's letterhead.
2. Original contract.
3. A receipt confirming the transfer of money for the insurance premium.
4. Passport or power of attorney issued by the policyholder.
5. Bank account details (for non-cash transfers).
6. A document confirming the legality of the cancellation.

The last item on the list depends on the circumstances of termination of the insurance contract. This document can be used:

• contract of sale;
• police certificate of theft;
• expert opinion on the impossibility of carrying out repair and restoration work;
• a certificate confirming deregistration for disposal (act of completed disposal).

The list of required documents should be checked again with an employee of the auto insurance company. Call or go to the official website. Also specify how the insurance premium will be refunded upon termination of the MTPL agreement. Some companies pay in cash, while others only make transfers to a bank account.

Formula for calculating the amount of monetary compensation

How much money will be returned after surrendering the policy? The auto policyholder is entitled to receive 77 percent of the premium for the remaining policy period. Why not the entire amount from the initial payment?

The award is divided into 3 parts:

1. 77% - the majority forms the main fund, from which compensation is paid.
2. 20% is the part of the auto insurer. Covers expenses that arise when servicing car owners.
3. 3% — RSA commission fee. These payments generate cash payments from the association in question.

Termination of the MTPL contract at the initiative of the policyholder gives the right to compensation, which is calculated according to the following formula:

Refundable amount = (Amount of insurance payment - 0.23 x Amount of insurance payment) x (Number of days until the end of the insurance period: Total number of days of the insurance period).

Previously, due to the coefficient of 0.23 in this formula, litigation was held. Some decisions were made in favor of insurers, and others in favor of car insurers. However, from now on, the rules and the relevant law on compulsory motor liability insurance stipulate that only 77% of the down payment must be returned.

What to do if the auto insurer refuses to pay?

First, visit your auto insurer's office. It is possible that the payment was not made due to the fault of the accounting department. If money has been sent, you should double-check your bank account.

Sometimes insurance companies refuse to pay without reason. If you are 100% sure that you are right, you must make copies of your car insurance and application. Then, with the documents prepared in advance, contact the RSA. This organization, which unites auto insurers in the Russian Federation and controls the activities of the relevant companies, therefore can influence an unscrupulous company. One of the most severe punishments is deprivation of membership in the RSA.

Step by Step Actions

Early termination of compulsory motor liability insurance is carried out according to one scenario, but for different reasons. Difficulties arise due to controversial issues between the insurer and the auto insurer on certain issues.

The contract termination process consists of the following stages:

1. Submitting an application

To cancel your MTPL policy, visit the office of the auto insurance company. There is no other way. Gather the necessary documents in advance. The application is filled out on the form issued by the company itself. But you can download the finished form on the online resource in the “Samples of Applications” section, etc.

The company is obliged to respond to the application by making a positive decision to transfer money or by refusing. In the second case, the reason must be indicated.

If the car insurer does not agree with the decision of the insurance company, write a complaint to the RSA, and then collect the required documents for legal proceedings.

2. Collecting information from the auto insurer

No later than 5 days, the car insurer is obliged to issue “Information on compulsory insurance”. This document will present the main points of the canceled contract. This information will be useful when applying to another insurance company.

3. Receipt of 77% of the insurance payment

If the payment decision is positive, the money will be transferred to the specified bank details or issued in cash.

Termination of an electronic insurance policy

The process of terminating the contract if you have an electronic policy does not have any difficulties. However, it will not be possible to cancel an agreement with an insurance company via the Internet. There are no online forms for such requests or other tools. To waive compulsory motor liability insurance, you need to come to the office of the auto insurer to submit an application.

Features of termination of the contract due to the sale of the car

Not all car owners are aware that part of the cost of the policy is safely returned after the sale of the car. This doesn't take much time.

To terminate compulsory motor liability insurance when selling a car, you need 1 document (original and photocopy of the Car Purchase and Sale Agreement). Some insurance organizations require additional documents, for example, a copy of the title with the new car owner. It is illegal.

A sales contract or a certificate of invoice is enough to break the agreement between the insurance company and the former car owner and receive legal compensation. Insist on your demands. If the auto insurer does not agree, contact RSA.

A conscientious organization will not refuse a money transfer. The procedure for terminating contractual relations and receiving money does not differ from the scheme presented above. We send an application and submit a package of documents, and then wait to receive part of the insurance.

When selling a vehicle, the money will be returned for the period calculated from the date of filing a written application for termination of the MTPL agreement. The date of signing the purchase and sale agreement is not taken into account. If the vehicle was sold in May, and the former car owner decided to contact the company only 3-4 months later, then you should not expect a refund for this period.

It is better to hurry up with your application to receive the maximum payment.

Conclusion

It is easier to cancel compulsory motor liability insurance in large auto insurance companies that value their clients than in small offices with a dubious reputation. It is better to contact trusted auto insurers (Rosgosstrakh, SOGAZ, Ingosstrakh, Alfastrakhovanie, etc.).

Often the cost of insurance in such companies is higher, which is a disadvantage. On the other hand, large players in the auto insurance market have large resources and try to provide high quality services.

Regardless of the size and fame of the company, it is necessary to know your rights and demand their implementation. Do not forget about the legal grounds for terminating the MTPL agreement, the formula for correctly calculating the refund, the established period for making payments, etc. In case of violations, defend your rights in the RCA and the courts.