How to get money back for unused MTPL insurance

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 an unused OSAGO policy

A previously issued OSAGO policy may, under certain conditions, become unnecessary for the owner. It is possible to return the remainder of the fee for the unused insurance period, but not all drivers are aware of this.

The article will describe in detail the conditions and procedure for returning money for compulsory motor liability insurance.

Conditions under which you can return money for unused MTPL insurance

All information about the conditions for refunding money for insurance is specified in the “Regulations on the Rules...” No. 431-P dated 09.19.2014. It also states that compensation is provided only for the unexpired term of the compulsory insurance contract or seasonal use of the vehicle.

Is it possible to get money back for selling a car?

The money can be returned, since the sale of the car is included in the list of conditions suitable for the owner to receive a refund.

In this case, in order to receive a refund for unused insurance, in addition to the main documents, you will also need to provide a car purchase and sale agreement and a copy of the title to the insurance company to confirm the change of owner.

When selling a car, it is not necessary to terminate the MTPL agreement and demand a refund from the company. You can simply sell the car along with the existing insurance and, in order not to remain in the red, include the amount of unused insurance in the price of the vehicle.

Is it possible to return the money just because you won’t use the car?

If a citizen simply does not want to use the car for some time, then, according to the law, this is not a reason to return the money paid for compulsory motor liability insurance. After all, it is almost impossible to prove that the car was really idle during a specific period of time.

All other cases

There are several other conditions regarding refunds:

loss of a car: theft, large-scale irreparable damage, disposal;
death of the policyholder, in connection with which the insurer company is obliged to terminate the contract;
death of the owner of the vehicle, entailing a change of owner, as in the case of sale;
liquidation of a legal entity that is the owner of the insured vehicle;
The insurance company lost its license, so the rest of the money must be returned.

If an insurer loses its license due to impending bankruptcy, you should hurry, otherwise you may not get your money back at all.

When the money is not returned: reasons

It also happens that the car owner cannot get his money back for the remaining insurance period upon termination of the contract.

The policyholder will not receive money if:

the contract is terminated at the initiative of the insurer due to incorrect data provided by the vehicle owner himself when completing the paperwork or incomplete payment for compulsory motor liability insurance;
the car was transferred to another person by proxy, since in fact it was sold, but according to the law the owner remained the same;
the owner terminates the contractual relationship with the insurer only because he does not plan to use the vehicle for some time;
his driver's license was revoked;
the insurer is declared bankrupt;
2 months have passed since the sale of the car, which means it is too late to submit documents for termination of the contract and refund;
The insurance company may refuse to return funds due to previously paid indemnities, but this is unlawful, and such a decision must be challenged in court.

Step-by-step algorithm for terminating a contract

To terminate the MTPL agreement, you must adhere to the following procedure:

Contact the insurance company with which you have a contractual relationship.
Write a statement of desire to terminate the contract. It is written in free form, but you can also use a sample from the company’s stand. Be sure to indicate the bank details where the insurance company can return the money.
Provide along with the application the following package of papers: the original insurance policy, a receipt for payment of the insurance premium, a purchase and sale agreement, pages of the owner’s passport, documents confirming the need to terminate the contract (on the liquidation of a legal entity - the owner of the vehicle, the death of the insured, etc. ).
Wait for the insurance company's decision within 10 days.
If the answer is yes, then take a certificate of the terminated MTPL policy for future insurance.
In case of refusal to terminate the MTPL agreement and the corresponding payments, you can contact the judicial authorities or the Union of Auto Insurers.

You must provide original documents along with their copies.

Termination of contractual relations is regulated by Federal Law No. 40 “On Compulsory Insurance” and Regulation No. 431-P.

In what case is it possible to get a full refund?

Initially, when purchasing an MTPL policy, the car owner pays its full cost. Moreover, when the question arises of terminating the contract and returning the amount remaining for unused months, the insurance company takes 23%.

Is it possible to take away this 23% from the insurance company and thus receive a full refund?

Until 2014, it was possible through the court to regain 23% retained by the insurer. Car owners won the case without any problems and received their money. This court decision was based on the fact that this contradicts the rules of OSAGO, the Federal Law “On OSAGO”, as well as the Civil Code of the Russian Federation.

Since 2014, the rules of OSAGO and the Federal Law “On OSAGO” have stipulated that only 77% of the amount is refundable. At the same time, a record was left in the Civil Code stating that the entire amount is due for payment. But during legal proceedings in this matter, preference is given to the Federal Law “On Compulsory Motor Liability Insurance”, so recently, even through the court, it will not be possible to take away the remaining 23% from the insurance company.

In what case will the funds be partially returned? How is the payment amount calculated and what does it depend on?

According to clause 1.16 of the Rules of Compulsory Insurance and Art. 958 of the Civil Code of the Russian Federation, the owner has the right to return the unused portion of the policy amount. To do this, you just need to provide the company with documentation confirming the legal reason: a purchase and sale agreement, a death certificate of the policyholder, papers on the liquidation of a legal entity, loss of a car.

Formula for calculating the return of insurance premiums under compulsory motor liability insurance

The final amount that the policyholder can receive back depends on:

number of remaining months;
the initial cost of the insurance policy.

To determine specifically how many unspent months are left, you should clearly define the date of termination of the contract, which may coincide with the date of death of the owner, the date of theft, or deprivation of the license.

The calculation formula is as follows:

SV = (PSP - 23%) x (n/12), where:

SV - refund amount;
PSP - the total cost of the policy;
n is the number of months remaining until the end of the insurance period.

3% are transferred to RSA;
20% goes to pay various expenses for conducting the process of termination of the contract.

Calculation example

Let's say the vehicle was insured in December and sold in mid-June, and the original policy cost RUB 4,200.

The calculation based on this data will look like this:

CB = (4200-23%) x (5/12) = 3234 x 0.42 = 1358.

The total refund amount will be 1,358 rubles.

Within what time period after termination of the contract must the money be returned? Where are they being returned?

According to the rules of MTPL insurance, a refund must be made no later than 14 days from the date of filing the application.

Sometimes money is returned through the cash desk in cash almost immediately after the application.

When transferring to the bank account indicated in the application, you will have to wait, but not longer than the specified time.

What to do if money is not transferred on time

If more than 14 days have passed and the money has still not been paid, you need to do the following:

Contact the insurance company and find out the reason.
If they claim that they have transferred everything, then you need to take the transfer number and go to the bank, where they can easily check the availability of money.
If the insurer violates the terms, transferred the wrong amount or refuses compensation altogether, it is worth going to the company management and the RSA, providing a copy of the policy and a statement of termination.
If the issue is not resolved, go to court.

For each day of delay, a 1% penalty is added to the refund amount.

Conclusion

Every car owner who demands a refund for unused insurance has every right to receive it, even if there have been insurance payments in the past period. If the insurance company prevents this, you should not retreat immediately, you need to resolve the issue to the end.

Refund of MTPL when selling a car

Good afternoon, dear reader.

Not all drivers know that it is possible to return part of the cost of compulsory motor insurance after selling the car.

For example, this fact is confirmed by the fact that many sellers simply give the insurance policy to the new owner, although he does not need it at all.

This article addresses the following issues:

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

The possibility of terminating the MTPL agreement is provided for in paragraph 4 of Article 10 of the Federal Law “On compulsory insurance of civil liability of vehicle owners”:

4. In case of early termination of a compulsory insurance contract in cases provided for by the rules of compulsory insurance, the insurer returns to the policyholder part of the insurance premium in the amount of the share of the insurance premium intended for insurance compensation and falling on the unexpired term of the compulsory insurance contract or the unexpired period of seasonal use of the vehicle.

Please note that refunds are not possible in all cases .

There is a list of situations in which you can get a refund, and it will be discussed further. However, it should immediately be noted that if the driver decides to terminate the MTPL contract for no apparent reason, then the money will definitely not be returned to him.

So, the situations in which the MTPL agreement can be terminated are discussed in detail in paragraphs 1.13 - 1.16 of the Rules for compulsory civil liability insurance of vehicle owners. These paragraphs provide both situations in which you can return money for unused policy time, and situations in which the cost of the policy is not returned.

Within the framework of this article, situations in which a refund of the cost of compulsory motor liability insurance is possible :

death of a citizen - policyholder or owner;
liquidation of an insurance company;
revocation of the insurance company's license;
destruction (loss) of a vehicle;
changing the owner of the vehicle (sale of the car).

How to get money back for unused MTPL insurance?

Getting a refund for unused insurance when selling a car in 2019 is a no-brainer. The driver needs to contact the insurance company where the MTPL policy was purchased and fill out a refund application there.

documents will be required for return :

Passport;
OSAGO policy;
Car purchase and sale agreement confirming the sale;
Bank account details where the money will be transferred.

The return procedure usually goes smoothly. As for questions and disputes, they most often arise regarding the amount of the refund.

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

4. In case of early termination of a compulsory insurance contract in cases provided for by the rules of compulsory insurance, the insurer returns to the policyholder part of the insurance premium in the amount of the share of the insurance premium intended for insurance payments and falling on the unexpired term of the compulsory insurance contract or the unexpired period of seasonal use of the vehicle.

There are 2 conditions in this paragraph:

Only the portion of the premium intended for insurance payments is returned.
Only the amount proportional to the remaining validity period of the compulsory motor liability insurance policy is returned.

Let's look at each of them in turn.

1. Let's consider the requirements for the structure of insurance tariffs established by the Bank of Russia. 77 percent of the policy value is intended to ensure current insurance compensation under compulsory insurance contracts .

The remaining 23 percent are intended for other purposes and will not be returned in any case.

2. Calculation of the amount proportional to the remaining period of validity of the compulsory motor liability insurance policy.

First of all, you need to calculate the date of early termination of the insurance policy. It is calculated as follows:

in case of death of a citizen - date of death;
in case of liquidation of the insurer - the date of liquidation;
in case of destruction (loss) of the car - the date of destruction (loss);
when revoking the insurer's license - the date the insurer received the application;
when selling a car - the date the insurer received the application.

Please note that the amount of refund under compulsory motor liability insurance when selling a car depends on how quickly the former owner of the car contacted the insurance company.

It is in your best interest to do this as soon as possible. Ideally, you need to go to the insurance company on the same day that you sell the car.

After the termination date of the contract is calculated, you need to calculate how many unused days are left .

For example, if OSAGO is concluded for a year and 100 days remain unused, the driver will be able to receive 100 / 365 = 27.3% of the original policy amount. In addition, do not forget that the 23% discussed above is also non-refundable. Those. as a result, the driver will receive 0.273 * 0.77 = 0.21, i.e. 21% of the policy cost.

It should be borne in mind that if the policy was not concluded for a whole year, then the cost will be calculated taking this into account.

For example, if 100 days remained unused, and the policy was concluded for 4 months (from May to August), then the driver will be refunded 100 / (31 + 30 + 31 + 31) = 81.3% of the amount. Taking into account the 23% discussed above, the final payment will be 62.6% of the policy value.

I recommend that you independently calculate the refund amount before contacting the insurance company. If you are returned less and the amount turns out to be significant, then the arrears can be recovered through the court. Naturally, it doesn’t make much sense to engage in legal proceedings for 100 rubles.

In conclusion, I would like to note that the return of compulsory motor liability insurance when selling a car is a fairly simple procedure and I recommend using it.

Termination of compulsory motor liability insurance. How to get your money back

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:

death of the owner of the car or the person driving the vehicle, with compensation in favor of the heirs or interested parties;
deprivation of an insurance company's license;
termination of the activities of the insurer providing services under the MTPL policy, liquidation of the legal entity;
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;
sale of the mechanism, registration of the contract with the road service;
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 is lost when applying for a policy for the next period 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 enough to return the 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 vehicles, 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 clause 10, 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:

parts of the amount for the unused period in days;
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 of 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 only 77% of the insurance premium paid is used to compensate for current expenses. 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 get a full or partial refund of the paid amount 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:

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.
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.
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.
Refunds are made to a bank account or in cash at the insurance company's branches. 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 after submitting the application that there is no 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:

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;
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;
when falsifying documents, for example, on the sale of a vehicle, in order to minimize payments;
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.

What to pay attention to - useful tips

When terminating the contract, it is advisable to adhere to the following recommendations:
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.
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.
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.
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.
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.
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.

On the topic: how to replace a driver’s license after expiration using the State Services website

Conclusion

Refunds for unused insurance are possible by law in certain cases, including when the car is sold, the insurance company is liquidated, or the license is revoked. The insurer calculates the amount taking into account the number of days or season remaining until the end of the policy period. The procedure for terminating the contract is quite simple - you need to contact the company with an application and supporting documents. The period for making a decision and transferring funds is determined by law and is no more than 14 days.

Grounds for refunding money for compulsory motor third party insurance (MTPL) insurance and the time frame within which the funds can be returned

The validity period of a standard compulsory vehicle insurance contract is 1 year. Of course, if this is temporary insurance, the validity period is reduced, but cannot be less than 3 months.

Sometimes the situation develops in such a way that the policyholder has to terminate the insurance contract before the policy expires. To close an insurance transaction, an appropriate procedure is provided for. In this case, such a concept as the return of compulsory motor liability insurance arises.

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 is it about?

The legislation does not limit the right of the vehicle owner to terminate the MTPL agreement before the expiration of the coverage period . The policyholder has the right to do this even without explaining the reasons. Unfortunately, not every driver knows that under certain circumstances, in the event of termination of the policy, he may qualify for the return of part of the insurance funds that remained unused.

The procedure for canceling the agreement is carried out in accordance with Bank of Russia Regulation No. 431-P dated September 19, 2014. The right to terminate the current policy belongs to the policyholder who owns the vehicle, the policyholder who has a power of attorney to accept the owner's return amount, and the owner of the car. The owner's heirs also have the right to receive a refund under compulsory motor liability insurance.

Is it possible to return insurance and get money back?

It is possible to return funds for the unused insurance period. To do this, you need to go to the office of the insurance organization, having with you the appropriate package of documents. They must contain confirmation that the reasons for termination were sufficiently significant. The list of documents provided will differ depending on the reason for canceling the insurance contract.

If the reason was the death of the owner of the vehicle, the list of documents will include:

original policy;
a receipt confirming payment;
death certificate of the insurance holder;
confirmation that the right of inheritance has come into force.

passport;
insurance;
contract of sale;
payment recipient's current account number.

In other cases, the list of documents will be different. If the reason for canceling the insurance is justified, you can expect a refund . If the contract is terminated without any explanation, you should not hope for the return of part of the insurance premium.

To return the policy and money, the client writes a return application. It states:

Name of the insurance organization.
Full name of the policyholder.
Details of the MTPL agreement.
Reason for early termination.
A method of accepting part of an insurance premium from an insurer.
List of documents.

The date of acceptance of the application is the date of termination of the contract . After the policy termination procedure has been completed, the insurer is obliged to issue the client a certificate containing complete information about insured events, payments, the vehicle and its owner.

Then a refund is made for the remaining non-insurance period.

Cases and reasons

Valid reasons for returning part of the invested funds are:

Change of vehicle owner. The money is returned if there is a purchase and sale agreement. If the owner changes by proxy, the opportunity to receive a refund is lost.
Total loss or theft of a vehicle. Such grounds are classified as causes that cannot be eliminated. When the vehicle is disposed of, the funds are returned.
Death of the owner or policyholder. In such situations, a change of owner is expected, which means the contract will lose force.
Liquidation of a legal entity. If the vehicle was owned by a company that has ceased to exist, the main participant in the transaction disappears. The contract becomes invalid.
Insurer bankruptcy. In such situations, it is necessary to have time to formalize the termination and receive a refund before the bankruptcy procedure begins, otherwise there simply will not be enough funds for compensation.

As mentioned above, a refund is not possible if the contract is terminated at the initiative of the insurer in the event of false information provided by the client . Money is also not refundable if the policyholder terminates the policy due to long-term departure during which the vehicle will not be used. Of course, you can ask for a refund, but almost no one receives a positive response.

How much will they return?

They return part of the premium, which is intended for insurance compensation.
They return an amount proportional to the unused period of MTPL coverage.

77% of the total cost of insurance is intended for organizing compensation payments. The remainder, namely 23%, goes to other purposes and is not refundable.

To calculate the amount proportional to the remaining time under the policy, it is determined with the date of termination of the contract. It could be:

date of death of the person presenting the contract;
date of theft or destruction of the vehicle;
if there is a change of owner - the date of submission of the application to the insurer;
if the company is deprived of its license - the date the insurance organization received the application.

When returning funds for compulsory motor liability insurance when selling a vehicle, the amount of the return depends on how quickly after the purchase and sale transaction the previous owner contacted the insurer . The best option is to carry out the termination procedure on the day of sale of the vehicle.

Then they calculate how many days are left until the expiration of the policy. If, when concluding a standard annual contract, the policyholder did not use 100 days, he will receive 100/365 = 27.3% of the invested funds. But since it is necessary to deduct another 23% for additional expenses, the calculation results in 0.273 * 0.77 = 0.21, which means 21% of the insurance price.

If the contract was concluded not for a whole year, but for a certain period, then this is taken into account in the calculation. In the case when the policy was purchased for 4 months and the same 100 days were not used, the refund amount is calculated as follows: 100/(31+31+30+31) = 81.3%. But after deducting 23%, the balance will be 62.6% of the full contract price.

The policyholder can also calculate the amount due using the formula:

B – return amount;
PS – insurance price;
n – the number of months remaining until the end of the policy period.

According to the MTPL Rules, the client must return the funds invested in the purchase of insurance:

on the date of termination of the policy, if settlement is made in cash;
before the expiration of two weeks from the date of submission of the application, if non-cash payment is intended.

Companies themselves choose how it is convenient for them to issue the required balance of funds. If the return is delayed, the client must write a letter of claim to the insurance company. If the insurer does not respond, the client has the right to use the services of the court.

Persons selling their cars should remember that the amount to be returned is calculated from the day the application is written, and not the date of conclusion of the purchase and sale agreement. Therefore, such policyholders should not delay contacting the insurer, otherwise they risk losing part of the money they are entitled to.

Company insurance agents often face some difficulties when canceling insurance. These difficulties relate to delays in the transfer of funds. Such situations arise not only through the fault of insurers; sometimes policyholders themselves make mistakes in writing their current account number and it turns out that the money goes to a completely different person.

Delays in collecting documents also affect receipt of payment. And drawing up an application requires increased care; any mistake can significantly increase the time it takes to receive the refund amount. When submitting an application, the client should make a copy of it for himself, in case of unforeseen circumstances.

If the insurer assures that the money was transferred, but it never arrived in the account, you need to find out the payment order number and go to the bank. Using the bank number it is easy to check whether the transfer has been received into the account. It happens that money gets stuck in the bank, and it is not the fault of the insurance company.

Returning OSAGO is a simple procedure that allows motorists to receive money from the total amount spent on the purchase of the policy. This can become a problem when the insurance company does not consider the reason for termination to be valid.