How to return part of the insurance after selling a car

How to get money back for compulsory motor liability insurance when selling a car

Many drivers are not aware that by selling a car, they can get back part of the money for insurance under compulsory motor liability insurance. There are also those who neglect the procedure, fearing paperwork. Autocode will tell you how to get your insurance back when selling a car without wasting a lot of time.

When can you terminate your relationship with an insurance company early?

According to the rules of compulsory motor liability insurance, the policyholder has the right to terminate the contract with the insurance company in the following situations:

• The car was in a serious accident and cannot be repaired;

• The owner of the vehicle is no longer alive (the heir receives the money for unused compulsory motor liability insurance);

• The company where the owner of the car is insured has had its license revoked (we recommend contacting the Russian Union of Auto Insurers (RUA);

Let's consider the last point in more detail, since the return of insurance when selling a car is the most common reason why a compulsory insurance contract is terminated early.

Please note that you can sell your car profitably using the Autocode service. In a couple of minutes, the service will tell you everything about the car: mileage, traffic police restrictions, fines, deposits, technical inspections, insurance and much more. A car checked in this way will inspire more confidence in a potential buyer. And the visit of a specialist will convince you of the seller’s honesty and the serviceability of the car.

Refund of the amount for compulsory motor liability insurance when selling a car

If OSAGO is not used, the money will be refunded to you. But only if the new owner is registered with the traffic police. Cases where vehicles are sold under a general power of attorney have nothing to do with them.

So, to terminate the MTPL agreement when registering the sale of a car, you will need:

• Passport of the owner for whom the insurance is issued;
• OSAGO policy;
• A copy of the car purchase and sale agreement;
• Account (debit card) details for transferring money.

With this list, go to the insurance office where you issued the policy.

How much money will be charged?

Termination of compulsory motor liability insurance when selling a car is a simple procedure, but it has some nuances. Thus, the calculation of unused days under insurance is made not from the date noted in the policy, but from the day when the policyholder wrote an application for early termination of the compulsory motor liability insurance policy. That is why we do not recommend delaying this procedure.

After a visit to the insurance company within 14 days, the company will credit you with 77% of the amount calculated in proportion to the unused days under insurance. Sometimes money is given in cash immediately after application.

As you can see, it’s easy to calculate the amount due yourself.

Why is 77% of the amount charged?

In 2014, the Central Bank established guidelines according to which insurers withhold 23% of the amount remaining until the end of the compulsory motor liability insurance contract. Ten percent of this amount is the agent's commission. Another 10% goes to the needs of the insurance company: opening offices, purchasing policies, paying employees, and the remaining 3% goes to contributions to the RSA.

Some car owners consider these deductions illegal and go to court. There were times when he took their side. Also, in 2016, insurance when selling a car became the reason for contacting the Prosecutor General’s Office. Social activist Viktor Travin asked to check the legality of the initiative. But the supervisory agency sided with the Central Bank.

If the insurance company refuses to terminate

Sometimes insurers refuse to terminate the contract until the owner shows them the title with the new owner of the car, or they require some other documents. Please be aware that this is illegal.

Maxim Sedov, Insurance Disputes Agency:

“The first thing that needs to be done when disputes arise with the insurance company is to put them in writing. Write your demands to the insurer; your copy must be marked with a date, signature with a transcript and the position of the person who accepted the document. The form is arbitrary: “Due to the fact that I, Ivan Ivanovich Ivanov, sold a car that belongs to me on March 06, 2018, I ask that the compulsory MTPL insurance contract (policy SSS No.) be terminated from the date of sale of the car and return the unused part of the insurance premium. I am attaching the details for enrollment."

Attach a copy of the DCP to the application, include the date, signature and current address for correspondence. Practice shows that just one such action sobers up insurers. If this measure does not help, file a complaint with the Central Bank, which supervises insurance companies, as well as with the regional branch of the RSA. Send there your complaint in any form and a copy of the application submitted to the insurance company.

A favorite trick of insurers is refusal to accept documents. This is not a problem, because the application can be sent by mail. To reduce mailing time, hand in the letter to the branch where the insurance company is located. It is better to send documents by a valuable letter with a detailed list of the attachments.”

How to get money back for compulsory motor liability insurance when selling a car. 3 simple ways.

You successfully sold your car, but the MTPL policy has not expired; you have, for example, at least 3 months left until expiration.

What to do with the MTPL policy when selling a car?

The situation suggests several options for resolving the issue.

OSAGO when selling a car - what to do with unused insurance?

Changing a car or selling it due to urgent need, regardless of the amount of money, is carried out with the preparation of a purchase and sale agreement in writing.

You can get your money back for compulsory motor liability insurance when selling a car in the following ways:

renew your MTPL policy for a new car.

We are writing an application to the insurance company for a refund of money for compulsory motor liability insurance when selling the car.

In case of selling a car under a general power of attorney, we enter the buyer’s name on the insurance policy.

Changing the owner of a car and the option of re-issuing insurance to another owner involves visiting the offices of insurance companies to write an application for changing the insured.

You need to have the following documents with you:

• vehicle passport with the name of the new owner (copy);
• car purchase and sale agreement;
• driver's license of the person for whom the insurance will be reissued.

When re-registering, you need to take into account documentary subtleties - the owner and the insured may be different people. But an insurance policy makes it possible to change both the policyholders and the owners in the document. If the seller has not changed his name on the insurance, then he must be prepared to participate in all processes related to insurance compensation for the owner of the damaged car.

Terminating the MTPL agreement will help you avoid unnecessary worries.

How to return the remaining insurance amount?

The option to return money for compulsory motor liability insurance when selling a car does not have any obstacles for the insured of the sold car. You will have to visit the office of the insurance company to write an application (but you should not hesitate with this, since the amount that will be returned to you will be calculated from the day you submit your application). The less time remains until the end of the policy, the less money you will receive.

The amount that will be returned to you is calculated using the formula:

Refund amount = Policy price x number of remaining days of insurance/365 – 23%

23% are expenses (3% in RSA, and 20% in the insurance fund).

These numbers are not stated anywhere at the legislative level, so there are doubts about the legality of their use.

Renew insurance for a new car

Instead of returning money for compulsory motor liability insurance when selling a car, it is possible to renew the insurance for a newly purchased car.

This is very convenient for a planned car change, when an old car is sold and a new car is purchased at the same time. If the engine power in a new car is higher, you need to be prepared to recalculate the cost. The owner must have with him a purchase and sale agreement for the sold car and all the documentation for the new car.

If you gave it to a close relative?

They not only sell the car, but also give it to their relatives or give the opportunity to legally drive the car to their children or wife. In addition to the joy of what happened, there are also problems with the correct execution of documents.

In this case, you can use a general power of attorney for the right to drive the car to another person. In this case, renewal of the MTPL policy is not required. You remain the official owner of the car, and the power of attorney allows another driver to legally operate the car.

As for the insurance side of the issue, it is enough to enter the name of the driver for whom the power of attorney is written in the compulsory civil liability insurance policy.

How to get money back for MTPL insurance

It is the right of the vehicle owner to return money for liability insurance However, insurance companies do not always cooperate. At the same time, there are situations in which receiving a refusal is equivalent to a violation of current legislation. For the insurer, this is fraught with fines.

When you can return the money spent on the policy, how to do it and what laws motivate you, we will tell you in the article.

Is it possible to return money for compulsory motor liability insurance?

In the process of signing an insurance contract, companies are guided by general rules. They are being developed by the Bank of Russia on the basis of Federal Law No. 40.

In accordance with clauses 33 and 33.1, money can be returned if the following situations occur:

• Change of owner;
• Disposal or impossibility of complete recovery;
• Death of the owner or insured person

If the owner sells the car, he has the right to return part of the money spent back. An exception is the execution of a general power of attorney.

In addition to Federal Law No. 40, the Civil Code of the Russian Federation protects the rights of the insured person. Article 451 allows you to terminate a contract with an insurance company if certain circumstances occur. And article No. 958 states that upon termination of an insurance contract, the organization retains an insurance premium equal to the period of validity of the document.

If the car gets into an accident and cannot be restored, you can also issue a return. However, the vehicle itself is allowed to be disposed of. It won't play any role.

According to clause 33, the insurance company is also obliged to return money for unused compulsory motor liability insurance in the event of bankruptcy. In practice, this is almost impossible. However, the owner has the right to file a claim in court. What the final decision will be depends only on individual circumstances.

It will not be possible to return the money if the reason is not included in the above list. For example, the owner of a car decided to change the insurer for his own personal reasons, or he simply does not use the vehicle, which is idle in the garage.

Who has the right to return money for compulsory motor liability insurance?

Clause 34 of the OSAGO rules specifies the circle of persons who have the right to return unused funds for the policy.

These include:

• Owner;
• Heirs;
• Confidant

The owner of the car has the right to transfer the right to receive funds to a third party, subject to the execution of a power of attorney. For this purpose, you will need to visit a notary. The service is paid. Quite often its cost exceeds the amount of compensation received.

By transferring ownership of a car under a general power of attorney, the former owner remains the official owner. Having taken out full insurance, the new owner simply will not be able to return the money for the policy. A solution may be to include the old owner's name in the insurance.

How to get your money back and when?

You can get your money back by contacting the insurance company where you purchased the policy. Employees of the organization should tell you in detail how to terminate compulsory motor liability insurance. The actions of the owner in this case are simple. He will be required to write an application and provide the necessary list of documents.

Particular attention should be paid to the timing of the application. After selling the car or disposing of it, it is recommended to immediately contact the insurer. The fact is that the refund in these cases is calculated based on the date of receipt of the documents. No one will pay for the missed months.

Another thing is the death of the insured person or the owner of the car. In this case, the date of application does not matter. The funds are returned to close relatives. The calculation is carried out from the actual date of death based on the provided documentary evidence.

How to calculate the amount for a refund - formula

The amount of refund for the MTPL policy is determined individually for each applicant. Calculation begins on the first day after receipt of documents. At the same time, 23% is deducted from the total amount - the insurance company's premium. This cannot be avoided; the insurer must not miss out on its benefits from the transaction.

The refund is calculated as follows:

• 23% is deducted from the total cost of the policy;
• The special insurance coefficient is calculated as the ratio of days of use of the policy to unused ones;
• The total amount, minus 23%, is multiplied by the factor

An online calculator will help you calculate the approximate refund amount. It is recommended to resort to his help in order to avoid errors in independent calculations.

The best option, allowing you to make calculations accurate to the penny, is to contact the insurance company employees.

You can find a calculator on the official websites of most insurance companies, in particular:

• RESO;
• Rosgosstrakh;
• Alpha Insurance;
• Ingosstrakh;
• Tinkoff

You will need to enter a minimum amount of data into the calculator. In addition to the designated sites, it is possible to find a suitable payment system on third-party electronic platforms.

How to return money for an electronic policy

By applying for compulsory motor liability insurance online, the car owner also has the right to return the money spent. The return procedure is standard. The owner has the right to visit one of the insurer's offices, or send an application by registered mail.

When sending an order to the insurer’s website, you must attach a standard list of documents to it.

Refunds via electronic compulsory motor liability insurance are carried out within standard terms. The policy form cannot be the reason for refusal.

Necessary documents for terminating the MTPL agreement

The contract can be terminated provided that the required list of documents is provided.

• OSAGO policy;
• Receipt for payment of insurance;
• A copy of the passport of the insured person or his heirs;
• A copy of the purchase and sale agreement (if there is a change of owner);
• A copy of the death certificate (if the cause was the death of the car owner);
• The original recycling certificate (if it is impossible to restore the vehicle);
• Certificate of inheritance, or a certificate from a notary office proving the filing of documents (relevant in the event of the death of the insured person)

Additionally, the company has the right to request a copy of the title with the name of the new owner of the car, and bank details for transferring funds.

Terms of payment of money for compulsory motor liability insurance

In case of disposal or sale of the car, money is paid no later than 14 days from the date of cancellation of the policy. If the insurer does not fulfill its obligation within the prescribed period, it will have to pay a 1% penalty for each day of delay.

Other deadlines are provided for when entering into inheritance . According to the law, heirs receive the right to use the property of the deceased after 6 months from the date of death. Therefore, you should not expect a quick payment of funds for the policy.

All legal successors of the deceased who have submitted inheritance documents to a notary office have the right to expect a refund. This means that if there are 2-3 of them, the amount will be divided into equal parts. You will have to contact the insurer together.

Why is 23% of the refund amount withheld?

The actions of the insurance company to withhold 23% of the policy cost are completely legal. They are justified by incurring expenses for which it is simply impossible to return payment.

The total cost of the policy consists of:

• 3% - mandatory contributions to the union of insurers. They are summed up and create a target compensation fund;
• 20% — the company’s own costs for obtaining insurance;
• 77% - the amount from which payments will be made in the future in the event of an insured event

Thus, the refund is calculated on 77% of the total amount spent. The insurer only deducts the amount of basic expenses.

Is it possible to get a refund if payments have been made?

The occurrence of an insured event cannot in any way affect the receipt of compensation for an unused policy. It does not depend on the amount of damage caused; it is paid according to the standard scheme.

Thus, having had an accident and received insurance compensation, having decided to sell the car before the policy expires, the owner has every right to apply for compensation. Insurance company employees will not be able to refuse to implement it.

Do you have any clarifying questions about the text of the article? Ask them in the comments! ASK A QUESTION TO AN SPECIALIST>>

Is it possible to issue a refund under compulsory motor liability insurance without providing a PTS?

The list of documents required for a refund is standard for all insurers. However, as mentioned above, some organizations require the additional provision of a PTS with the name of the new owner. In fact, this is not mandatory. Obtaining a legal refusal in this case is impossible.

Insurers are required to terminate the contract upon presentation of the purchase and sale agreement, the original policy and receipt of payment. Why then do we need a PTS? The fact is that some car owners deliberately enter into a purchase and sale agreement in order to receive a refund under compulsory motor liability insurance. The insurer may not know whether the car has been re-registered, since the handwritten copy is not certified by a notary office and may simply be thrown away.

By requesting a title with the name of the new owner of the car, the insurance company is trying to protect itself from fraudulent activities. In order not to run into problems and prove that you are right, it is still worth making a copy of the document.

In addition, this will give the former owner confidence that the vehicle has been completely re-registered and he is no longer responsible for it in terms of tax payments and administrative penalties .

How to get money if you refuse OSAGO: step-by-step instructions

In conclusion, we propose to define a clear sequence of actions for the owner or heirs to receive money for unused compulsory motor liability insurance:

1. We contact the insurance company that issued the policy.
2. We are writing a statement to terminate the contract.
3. We provide the necessary list of documents.
4. We are waiting for payments to arrive.

If insurance company employees refuse to accept documentation unlawfully, you can file a complaint with the prosecutor’s office or file a claim in court.

To make a decision in your specific situation, please contact a specialist through the online consultant form or by phone:

Moscow and region: +7(499) 577-00-25 ext.
691 St. Petersburg: +7(812) 425-66-30 ext.
691 All regions of the Russian Federation: 8(800) 350-84-13 ext. 691
It's fast, free and confidential!

How to get money back for MTPL insurance when selling a car

OSAGO is a compulsory type of insurance. All provisions relating to the registration and use of the policy, as well as the principles of operation of the “motor citizen”, its features are enshrined in No. 40-FZ of April 25, 2002. The specified regulatory legal act allows for the possibility of early termination of the contract after the sale of the car with payment to the client of the unused portion of the insurance premium.

In the article we will consider the procedure for returning funds paid for compulsory motor liability insurance, as well as the procedure for calculating such compensation.

Procedure for returning part of the insurance premium

The legislation allows you to return money for compulsory motor liability insurance after alienation of the car. This is possible if, after the sale of the vehicle, the previous owner still has a valid vehicle license. The right of the ex-owner of the vehicle to return part of the insurance is reflected in Art. 10 clause 4 No. 40-FZ and ch. 1 clause 1.13–1.17 of the Regulations “On the Rules of Compulsory Motor Liability Insurance”.

Early termination of the contract and the return of part of its cost occurs according to a certain algorithm:

preparation of necessary documents;

notification to the insurer of termination of the contract;

receiving funds.

What documents will be required

To cancel the contract early, the former owner of the car must provide the insurer with the following set of documents:

identification document;

car purchase and sale agreement;

a photocopy of the title with notes about the new owner;

details of the account to which the money must be transferred (if choosing a non-cash payment method);

receipt for payment of insurance premium (if available).

If a representative of the policyholder will handle the refund, then it is additionally necessary to issue a notarized power of attorney in his name.

To avoid mistakes, it is recommended to fill out the application directly at the company’s office using the sample provided by its employee.

Visit to the insurance company

After collecting all the necessary documents, you must submit them to the insurer. An application for a refund of compulsory motor liability insurance when selling a car is drawn up in two copies. One of them is transferred to the agent, the second is kept by the policy owner.

The insurance company employee must confirm acceptance of the documents with a stamp and date of transmission on the application and inventory of the submitted documentation, which remain with the policyholder.

After calculating the amount of compensation, funds can be paid to the client directly at the organization’s cash desk. If the applicant has chosen a non-cash method of returning insurance, the funds will be credited to the account with some delay.

Calculation procedure

According to clause 34 of the Rules “On Compulsory Motor Liability Insurance”, in case of early termination of an insurance contract, the policy holder is paid part of the premium for the unexpired period of validity of the document. Based on the specified regulatory act, when selling a car, this period begins to be calculated from the date of filing the corresponding application with the Investigative Committee.

The process of calculating compensation does not take much time, since such calculations have clear algorithms and are automated. The policyholder can independently determine the amount of payment to check the honesty of the company.

Calculation rules

The amount to be paid upon early termination of the contract is calculated using the formula:

K – amount of compensation;

SP – the amount of the insurance premium paid when purchasing compulsory motor liability insurance;

D – number of unused months of insurance.

The amount of deductions withheld when calculating the return of part of the cost of insurance is determined by Decree of the Central Bank No. 3384-U of 2014. It is 23% of the price of the MTPL policy. These costs are distributed as follows: 20% - payment for the work of the insurer, 3% are transferred to the RSA fund.

Calculation example

Let's say the policyholder sold the car 2 months before the termination of the compulsory motor liability insurance policy. When concluding an agreement with the insurance company, he paid a premium in the amount of 9,602 rubles. To calculate how much money the company will return to him, you need to substitute the available data into the formula:

(9602 – 23%)*(2/12)=1232.25 rubles.

If the calculation made by the motorist does not coincide with the results of the insurer's calculations, then the policy holder can go to court to resolve the dispute.

Other cases when you can get your money back for compulsory motor liability insurance

Based on clause 33 of the rules “On OSAGO”, part of the insurance premium can be returned not only when selling a vehicle. Other reasons for compensation have been identified:

death of the policy holder or vehicle owner;

loss of a car (theft, total loss);

revocation of the insurer's license.

The rules for returning part of the insurance premium in case of early termination of the contract for the reasons described above do not differ from the procedure given in the article.

Let's sum it up

Refunds for compulsory motor liability insurance do not cause any particular difficulties and are most often approved by insurers. To avoid mistakes and save personal time, it is recommended to carefully check the completeness of the collected set of documents and transfer them to the company representative. Subsequent payment depends on the speed of work and integrity of the insurer.

MTPL insurance when selling a car. Renewal of the policy and refund of funds

The sale of a car does not always coincide in time with the expiration of the MTPL insurance period. If the owner of the car changes, the car insurance contract continues to be valid for the previous owner. But do not rush to throw away the policy, because there are several options for its further use.

Dear readers! Our articles talk about typical ways to resolve legal issues, but each case is unique.

If you want to find out how to solve your particular problem, just call, it’s fast and free!

What to do with a car title if you are selling a car?

When selling a car, compulsory motor liability insurance is not required. If the car was not used for its intended purpose, the owner may not have insurance. If there is a policy, after the car is re-registered to the new owner, the insured person ceases to bear responsibility under the insurance contract.

To reimburse costs for the unused period of validity of compulsory motor liability insurance, he can resort to one of the options:

• Get compensation from the insurance company.
• Reissue the policy to the new owner of the car.
• Renew your insurance for another car.

Receiving compensation

The MTPL rules provide for the possibility of early termination of the insurance contract and payment of funds for the unused period of insurance. A change of car owner is included in the list of cases giving the right to receive compensation.

The policy owner contacts the insurance company, writes an application for a refund and provides the necessary documents. The organization is obliged to consider the application, calculate the required amount of payments and transfer the money to the applicant within two weeks after accepting the application.

This option is convenient because you can act independently of the new owner of the car. It should be remembered that the calculation of the remaining days until the expiration of the policy is made from the date of acceptance of the application, and not from the date of re-registration of the vehicle. Therefore, you should not waste time; it is advisable to visit the insurance company immediately after selling the car.

Re-registration to a new owner

Registration of a vehicle is carried out only after compulsory motor third party liability insurance by the new owner. According to Art. 960 of the Civil Code of the Russian Federation, when the insured property is transferred to a new person, the rights and obligations under the insurance contract are transferred to this person.

By mutual agreement of the parties, the policy can be reissued to the buyer of the car. In this case, the amount and method of payment for the remaining period of validity of the MTPL are agreed upon between the seller and the buyer of the car.

The transaction can be executed in the form of a separate document or immediately stipulated in the car purchase and sale agreement. The former owner of the vehicle remains the policyholder, so his presence is required when renewing the insurance.

When re-registering, the previous validity period of the policy is retained; depending on the age and length of service of the new owner, the insurance company may require additional payment.

Re-registration to another car

After selling the car, the policy owner can renew the insurance for another car. This option is used quite rarely, as it requires an additional condition for its implementation: the presence of two cars insured by one organization.

That is, the seller must have another car in stock or is going to buy a new vehicle. When renewing, the validity period of the insurance contract remains the same, so if the purchase of a new car is delayed, it is better to receive compensation. The insurance company may require additional payment if the power of the new car is higher than that of the old one.

How to get my money back?

Not all motorists know how and when they can return the money for the policy after selling the vehicle. Receiving compensation for early termination of a compulsory motor liability insurance agreement is possible only in the following cases:

1. car sales;
2. the vehicle is not suitable for use;
3. the insurance company that issued the policy has lost its license;
4. death of the policyholder.

Insurance can be canceled at any time for other reasons, but in such cases payment of funds is not provided. Therefore, it is inappropriate to terminate the contract for reasons not provided for by the MTPL rules.

Calculation of the refund amount

The insurance company itself calculates the refund amount; you do not need to indicate it in the application. It is calculated standardly using the formula:

• C – payment amount;
• A – total cost of the policy;
• B – number of unused days;
• 23% – the amount of the deduction, of which 3% is transferred to the Russian Auto Insurers Fund, the remaining 20% ​​is the insurer’s compensation for conducting the case.

The procedure for terminating the insurance contract

To get a refund when selling a car, you need to collect the necessary documents:

• original MTPL policy;
• statement;
• insurance payment receipt;
• copy and original of the purchase and sale agreement;
• copy and original of civil passport;
• Bank account details (if necessary).

The insurance company may require a copy of the title issued to the new owner of the car, but this is unauthorized. The buyer registers the car independently, without the participation of the seller. Therefore, providing this document is not always possible.

An application for a refund is written in two copies addressed to the head of the insurance company branch. There is no set form, the following information must be entered:

1. Full name and contact details of the applicant.
2. Details of the MTPL policy.
3. State registration plate of the car.

The application indicates the reasons for termination of the contractual relationship, a request to return the unused amount and account details for the transfer of funds. Sign, date and attach the required package of documents. The unused period is counted from the date of registration of the application.

Documents must be submitted to the company where the car is insured. An insurance company employee must accept the application, put on the applicant’s copy the registration number, seal, signature, indicate position and surname.

In the future, this document may be needed when filing a complaint with the RSA or the court. The insurance company determines the amount of compensation individually for each applicant. Calculate using the formula given above.

The period for consideration of the application according to the law is 14 days. During this period, the organization is obliged to transfer money to a bank account or pay it in cash after termination of the insurance contract. If the company delays the deadline, the applicant can write a complaint to the prosecutor's office, the RSA or the judicial authorities.

Refund nuances

Insurance companies may reduce the amount of payments upon termination of an insurance contract, citing the fact that insured events were paid during the policy period. This is absolutely illegal, the owner has the right to receive the full settlement amount.

In Art. 958 of the Civil Code of the Russian Federation states that upon termination of an insurance contract, the organization retains an insurance premium equal to the period of validity of the document, but nothing is said about deductions.

As of today, there is no law on the termination of an MTPL policy, so there are no specific instructions in this regard. Insurance companies practice withholding 23% of the amount paid, although this is unreasonable. This money can only be recovered through court, which is not always justified.

At the request of insurance companies, you should apply for compensation no later than two months from the date of sale of the car. If you violate this clause, you may be denied a refund. The later you contact the company, the lower the number of unused days and the amount of payments.

Step-by-step instructions for re-registration to a new owner

The owner of the car is obliged to insure it within 10 days from the date of purchase and sale. He can buy new insurance or reissue the old owner's policy. The procedure is regulated by the Law on OSAGO (Federal Law No. 40), the Regulations of the Central Bank of the Russian Federation on OSAGO (No. 431-P), the Civil Code of the Russian Federation (Federal Law No. 14) and the Resolution of the Presidium of the RSA.

Conclusion of an agreement on the transfer of a policy

Renewal of the MTPL agreement is done only with the voluntary consent of both parties. The indemnity agreement may be oral or a clause added to the purchase agreement, specifying the duration of the policy and the amount paid by the buyer.

It is possible to sign an additional agreement certified by a notary to avoid problems with payment. All mutual settlements are agreed upon by the piece workers, the insurance company only re-issues the paperwork.

Preparation of documents

To re-register compulsory motor liability insurance, the following documents are required. From the insurance owner :

1. Statement. It is written in two copies, one with a mark of acceptance remains with the applicant. The document indicates the full name of the insured person, details of the MTPL agreement, a request to make changes to the policy due to a change of owner, date of writing, signature.
2. MTPL agreement.

From the buyer:

1. Copy and original of civil passport.
2. Copy and original PTS.
3. A copy of the purchase and sale agreement.
4. A copy and original of the driver's license of the buyer and other persons who will be included in the policy.

Visit to the IC office

The seller and buyer of the car contact the office. The employee accepts documents, checks and, if necessary, recalculates the insurance premium. It depends on the data provided by the buyer:

• Region of registration.
• Driving experience.
• Age.

After completing the calculation, an additional payment may be required, which will need to be paid to the company's cash desk or bank. If you have all the necessary documents, re-registration takes one day.

The new insurance owner receives a duplicate policy, a payment receipt, and European protocol forms. The office employee returns the original documents to the seller and buyer. The owner of the car can begin the procedure of registering the car with the traffic police.

Procedure for renewing a policy for another vehicle

Re-registration of compulsory motor liability insurance for another car is permitted if the owner has two cars insured by the same company. The following documents are required from the policy owner:

1. Application for re-registration of compulsory motor liability insurance for another car with all documents attached.
2. Car purchase and sale agreement.
3. PTS for the second car.
4. MTPL policies for both vehicles.
5. Copy and original of civil passport.
6. Diagnostic card of the second car (if it is more than three years old).

The owner pays a visit to the insurance company and submits the necessary documents. After reviewing the application, the organization’s employee makes the necessary changes to the policy.

Reasons for insurance company refusals

Upon termination of the MTPL contract, the insurance company may refuse to pay compensation if the grounds for termination of the policy are not included in the list of cases accepted by the rules. When reissuing insurance to a new owner, the company may refuse if the seller had an insured event with payments in the current insurance period.

The insurance company may also refuse to pay if more than two months have passed since the sale of the car or citing bankruptcy of the company. If the insurance company's refusal is unlawful, the policy owner may file a complaint with the prosecutor's office or judicial authorities.

If the car is sold, the insurance owner can deal with the car insurance contract at his own discretion. Knowing the terms and conditions for consideration of compensation payments will help you get your money's worth or save money on issuing a new policy.