In what cases can a compulsory motor liability insurance agreement be terminated?

When can you terminate an MTPL agreement early?

The technology for terminating an MTPL agreement has its own characteristics. In order for the terms of the current contract to lose their relevance for the vehicle owner, you need to know some of the features of cooperation with the insurance company. Legally savvy citizens have a lower risk of being deceived.

Features of termination of the MTPL agreement

There are many reasons to choose not to have an existing insurance program. The main ones include poor quality of service, delayed payments, or simply a disrespectful attitude towards the client of the insurance company. All this pushes the car owner to think about terminating the contract and concluding it with another company. However, it is quite difficult to do this legally competently, since the relationship between the parties is regulated by law.

Due to the termination of the cooperation agreement with the insurance company, the car owner can count on receiving payments for the entire period remaining until the expiration of the agreement. 23% is automatically deducted from the amount received. 20% goes to cover the organization’s expenses, and 3% is used to generate funds for the Union of Russian Insurers. 77% of the total amount is used to form insurance reserves.

Important! It should be noted that the remaining period is calculated from the moment the application is submitted, and not after the actual termination of the contract.

The owner of the vehicle may demand termination of the contract at any stage of cooperation. Each insurance company has its own mechanism for resolving this issue, but the basic rules are regulated by law.

When is it possible to terminate the contract?

Before deciding whether it is possible to terminate the MTPL agreement, you must first study the list of situations that may arise. The reason for termination of the insurance contract may be one of the described cases:

Death of the owner of the vehicle.
Complete structural loss of the vehicle.
Termination of the license of the insurance company.
The owner of the vehicle has changed.

Death of the vehicle owner

In the event of the death of the policyholder, it is enough to simply provide the insurer with a receipt of payment, a compulsory motor liability insurance policy and a copy of the death certificate. After this, the agreement terminates automatically.

Complete structural loss of the vehicle

If, as a result of an accident, the car is structurally destroyed and it cannot be fully restored, then cooperation between the insurer and the policyholder stops. The reason for the termination of relations may also be the state car recycling program. In this situation, to terminate the contract, you must provide an insurance policy, a payment receipt and a disposal certificate.

Termination of the license of an insurance company

Provided that if the insurer's license to carry out insurance activities has been revoked, this may become another reason for terminating the contract. However, it should be noted that getting the money back in this case will be very problematic.

The owner of the vehicle has changed

Termination of compulsory motor liability insurance when selling a car is one of the tasks set before the former owner of the vehicle. In this case, the existing contract becomes completely useless, since the new owner has no right to use it. If there is still a sufficient amount of time before the expiration of the insurance contract, then a refund of funds would be an appropriate solution.

List of required documents

Before terminating compulsory motor liability insurance, you should collect the necessary documents. Depending on the situation, the list of some securities may change. In 2019, the main set looks like this:

receipt for regular payments;
original insurance contract;
document on the purchase and sale of a vehicle;
document confirming the identity of the policyholder.

If necessary, you should also provide a disposal certificate and a copy of the death certificate with documents confirming the fact of inheritance.

Some insurers may additionally require a vehicle passport indicating the new owner if the reason for termination of the contract was the sale of the car. If the company's rules do not provide for insurance payments to be made in cash, then you should additionally attach a copy of your savings book with the exact details of your current account.

Advice! Before visiting an insurance company, it is best to consult with a representative of the company by telephone. This will help to avoid all unclear moments and free you from the need to make a second visit. The contact details of the insurer are indicated in the contract.

Deadlines for contacting an insurance company

If the vehicle is sold, the policyholder is interested in contacting the insurance company as soon as possible in order to write an application for termination of cooperation. This is due to the fact that the money is returned not from the moment the purchase and sale agreement is signed, but from the moment the statement of intention to terminate cooperation with the insurer is submitted . If the car was sold in April, and the former owner contacted the insurance company only in May, then the money for the past month will not be returned to him.

In the event of the death of the policyholder, the date of termination will be considered the date of death, so there is little point in rushing.

To whom and when is the money paid?

Most often, the money is returned immediately after submitting the appropriate application. If the amount is transferred to a current account, then this procedure may take a period of time equivalent to 14 days from the date of submission of the application. Before you return money for compulsory motor liability insurance, you should familiarize yourself with the list of those to whom it can be transferred:

owner of the vehicle;
heirs of the deceased policyholder;
the policyholder, if he is also the owner of the car;
the policyholder, if a power of attorney from the owner of the vehicle for the right to receive funds.

Provided that the car is sold under a “general power of attorney”, but legally the previous owner remains the owner, you can simply add the new owner to the insurance policy. It is quite possible that you will not even have to terminate the contract.

What if the money has not been paid?

If, after a two-week period of time, the corresponding payment has not been made by the insurance company, then first you should contact the central office of the insurer. It is possible that the money is stuck at the accounting level. If the payment has been made, then the logical solution would be to re-check your own account.

However, there are situations in which the insurance company refuses to make payments. In this case, you should prepare a photocopy of the policy and a statement of its termination, and then go to the Union of Russian Insurers . This organization regulates the activities of insurance companies, so it can influence insurers.

The Union may take appropriate measures and punish the insurer for improper performance of professional obligations. It is even possible to decide on membership in an association as a punitive measure. Such punishment is considered quite harsh, so filing a complaint with the Union of Russian Insurers is a more effective solution than going to court.

Video: How to get money back for extras. OSAGO services?

Controversial issues

Early termination of compulsory motor liability insurance can cause many controversial issues. In particular, the policy owner is unable to terminate the partnership at any time. Insurance companies are ready to terminate a contract solely for reasons that are established by law. Precedents of early termination without a compelling reason are very rare.

Many car owners are wondering whether it is possible to get a refund for the remaining period if the company previously made insurance payments. It should be noted that underestimating the amount paid or refusing to make payments is an unlawful act. In case of termination of the MTPL policy, the loss is not taken into account.

What's the result?

The procedure for terminating an insurance contract at the initiative of the policyholder may involve certain difficulties. Relations between the parties are regulated by law, so it is very important to be legally literate in order to assert your rights.

Is it possible to terminate the MTPL insurance contract early and get the money back?

A compulsory car insurance policy is usually purchased for a year. However, during this time it does not always remain significant for the vehicle owner. Often, a compulsory motor liability insurance policy becomes useless for the car owner after its sale, refusal to drive or deprivation of a license. If the insured person does not take any action before the end of the insurance period, then part of the insurance premium for the unexpired period will simply “burn out.”

Considering the fact that in 2014–2015. prices for compulsory motor liability insurance have increased 2-3 times, the issue of returning these balances has become relevant for many who, for some reason, no longer need insurance. In this regard, provisions were introduced into a number of regulatory laws governing activities under compulsory motor liability insurance that regulate the procedure for early cancellation of an insurance policy and the return of a share of the money paid for it.

Is it possible to terminate compulsory motor liability insurance early?

The driver can terminate the MTPL contract before its expiration on his own initiative, even without giving reasons. This reads:

Art. Art. 451, 958 Civil Code of the Russian Federation;
Federal Law No. 40 of April 25, 2002;
MTPL rules (Central Bank Regulation No. 431-P dated September 19, 2014).

But the car owner cannot always count on a refund for the unexpired period. The MTPL Rules provide an exhaustive list of grounds for termination of the contract under which the policyholder can receive the balance. These include:

change of owner of a vehicle in connection with its sale (under a contract, and not under a general power of attorney), exchange, gift;
vehicle recycling;
liquidation of an insurance company, revocation of its license or bankruptcy;
The death of the policyholder, the owner, the liquidation of the legal entity that owns the car is the reason for the automatic termination of the compulsory motor liability insurance policy, in which the heirs or assigns can count on money for the unexpired period.

Current legislation states that a contract can be terminated early on “other grounds provided for by the legislation of the Russian Federation.” In Art. 451 of the Civil Code of the Russian Federation, this means any significant change in circumstances, in particular, refusal to drive or deprivation of a license. In such cases, the insurance company has the right to refuse to return the money for insurance. Judicial practice has precedents when drivers got their way and received funds. Nevertheless, the Constitutional Court of the Russian Federation remains on the side of insurance companies: in its ruling dated March 24, 2015, it ruled that refusal to pay upon termination of a contract at the initiative of the car owner, not related to the sale or destruction of the vehicle, is legal.

Calculation of the balance amount under the MTPL agreement

The insurance premium is usually returned to the policyholder for the unexpired time, starting from the next day from the date of filing the application. In the event of the death of the owner, policyholder or loss of the car, the contract is terminated automatically and the time is calculated from that moment. The amount of the balance is calculated using the formula:

S = (P * 0.77) * (N / 365) where:

P – policy cost;
N – number of unused days;
S – amount to be returned.

For example, a car owner paid 15 thousand rubles for an annual MTPL policy. with an insurance period until September 30, 2017. On December 20, 2016, he contacted the company with an application to close the insurance contract on his own initiative. Reason: car sale. Thus, the premium to be reimbursed must compensate for 284 days of insurance. Accordingly, the amount of the balance to be paid will be RUB 8,986.84.

When calculating the amount of the balance under the MTPL agreement, it is necessary to understand that part of the insurance premium in the amount of 23% goes to pay for insurance services and contributions to the RSA. These are expenses that the insurer bears in any case. The policyholder can retain this amount in accordance with FSSP Letter No. 56 and methodological recommendations of RSA No. 10. Some companies establish “preferential” rules, according to which RVD is not charged if 3 to 6 months have passed from signing the policy to its termination at the client’s initiative.

Persistent drivers returned these percentages through the courts - practice knows such cases. Since the Central Bank became the regulator of the insurance market, the “23% provision” has appeared in the MTPL Rules. Nevertheless, many car owners and experts consider this rule to be a violation of consumer rights, and the courts often side with them.

Documents required for termination

In order to carry out early termination of the MTPL agreement, it is necessary to prepare the following mandatory documents:

an application with bank account details for transferring money (if the insurance company does not pay funds through the cash desk);
original MTPL policy (returned to the insurance company);
copies of the applicant’s passport and the original for verification;
power of attorney, if a representative is applying on behalf of the owner/policyholder.

The application is written to the address of the insurance company (its branch). The “header” contains the full name of the car owner, place of registration, telephone number, policy number and date of purchase.

In the main part, the applicant informs the insurance company about the decision to terminate the contract early on his own initiative, indicating the grounds and date. Next comes a request to calculate and return the balance. If the insurance company does not allow the return of money in cash, you must include account details in the body of the application.

Situational documents are submitted in certified copies (on each sheet the inscription “Copy is correct”, date and signature):

purchase and sale agreement (certificate invoice);
transfer act (for legal entities);
recycling act;
death certificate (act of liquidation of a legal entity);
a certificate from a notary confirming the imminent entry into the inheritance (or a certificate of entry).

You should always keep one copy of the application and the policy for yourself - they will be useful in court if the insurance company refuses to return the money.

Refund procedure

In accordance with the rules of MTPL insurance, the following categories of persons can receive money:

owner of the vehicle;
the policyholder under a power of attorney from the owner to receive funds from the insurance company;
heirs of the owner/policyholder;
their representatives by proxy.

The unexpired period is calculated from the date of filing the application if there was a refund of compulsory motor liability insurance upon sale of the car. In other cases (death or liquidation of the owner, revocation of an insurance company's license, destruction of a vehicle), time starts from the occurrence of the event.

In turn, the funds to be returned to the policyholder can be paid as follows:

in cash through the cash desk at the UK branch;
to the bank account of the owner - an individual or legal entity.

The application is considered within 14 days. This is the period within which the insurance company is obliged to close the contract and pay the remaining funds.

The law provides for the driver’s ability to refuse voluntary insurance (including CASCO, DSAGO, etc.) without giving reasons within five days after issuing the policy. The bonus upon termination of the contract during this so-called “cooling off period” is returned to the citizen 100 percent. This rule does not apply to MTPL. Nevertheless, it can be used in situations where enterprising insurance company managers do not agree to issue compulsory insurance without a “load”. Immediately after purchasing MTPL, without leaving the office, the car owner has the right to issue a waiver of unnecessary imposed policies. The money will be refunded in full within 10 days.

If the policy was purchased online or through a “Single Agent”

How to return money for compulsory motor liability insurance if it was purchased online (electronic policy) or using the “Single Agent”? In the first case, the procedure follows a standard scenario: the driver brings an application to the company office and then waits for the money to be transferred.

In the second case, the policyholder’s office may not be in the car insurance region, and filing an application through the agent who sold the policy is still problematic from a technical point of view. RSA claims that the situation will be corrected at the beginning of 2018.

For now, drivers who want to terminate the MTPL contract on their own initiative contact the office of the agent - the direct seller. He accepts the application and package of documents and sends it to the insurer's office. The time the procedure takes can be more than 2 weeks. Funds are returned only to the account or card.

If the insurance company refuses a refund

The refusal of the insurance company to close the MTPL agreement at the client’s initiative can be caused by various reasons. Here are the most common ones:

the package of documents turned out to be incomplete;
Insurance payments were made under the MTPL insurance contract.

The law establishes an exhaustive list of documents that an insurer may request from its client. But in an effort to protect themselves, insurance companies require additional ones, for example, a copy of the PTS with the new owner written on it as confirmation of the completed sale. Providing these papers is a citizen’s right. If the insurance company refuses to pay money based on the lack of optional documents, this can be challenged in court.

The law does not establish other rules for early termination of compulsory motor liability insurance and payment of the remaining premium in the event of losses. If the actions of the insurance company are clearly unlawful, a citizen can defend his rights in pre-trial proceedings, by complaining to the management of the insurer, to the RSA or to the Central Bank, as the main regulator of the insurance business in Russia.

A lawsuit is the most effective measure if claims do not help. In court, you can not only achieve payment in full, but also count on a penalty in the amount of 1% of the total amount for each overdue day, and even compensation for moral damage.

Early termination of the contract and KBM

The cost of compulsory motor insurance depends on the BMR (bonus-malus coefficient). Thus, accident-free driving during the year gives a discount on the purchase of a policy for the next year. You can reduce the price of insurance by a maximum of 50%.

Early termination of compulsory motor liability insurance at the initiative of the driver will not increase the discount, that is, the cost of the policy will not change in the next period. If there were payments (losses) at this time, they are taken into account further. Thus, if there is not much left until the end of the contract, and the driver has changed cars and is going to take out a new policy, it is worth calculating whether it will be profitable.

For example, a car owner took out an annual MTPL policy worth 15 thousand rubles. the insurance period is until December 30, 2016 (his KBM = 3, he paid the full cost for the policy). On December 10, 2016, he sent a statement to the company to waive compulsory motor liability insurance on his own initiative after selling the car. Funds are subject to refund within 20 days. Accordingly, the balance amount will be equal to 648.88 rubles. If he had not refused OSAGO, next year his insurance price would have been 14,250 rubles. As a result, he remained in the red by 101 rubles.

Conclusion

Early termination of the MTPL agreement is possible and is regulated by the regulatory legal acts of the Russian Federation. However, money for the unexpired period of use of insurance can be returned only in a few cases. Insurance companies may introduce additional rules for early termination of a contract if they do not contradict the law. Experts advise clarifying this information before applying for compulsory motor liability insurance.

How to terminate a compulsory motor liability insurance contract on your own initiative and return the money?

There are many life situations when the policyholder no longer needs an MTPL policy for his car, and the contract has not yet expired. What to do in this case and is it always possible to contact the company and get back part of the insurance premium paid?

When does a driver have the right to terminate a contract with a company early and return money for unused insurance?

In this matter, the MTPL rules (clauses 33, 33.1) take a clear position. You can return money for the unexpired insurance period under the MTPL policy in three cases.

If the owner of the vehicle has changed (the car was sold, but not under a general power of attorney).
If the machine cannot be restored after an accident or is scrapped for any reason.
In the event of the death of the policyholder or owner.

Purely theoretically, according to clause 33, the company is obliged to return part of the insurance premium in the event of its liquidation (bankruptcy), but it is obvious that in practice such a situation is completely unrealistic.

If the above conditions are met, the insurance premium is returned in proportion to the days unused under the compulsory motor liability insurance policy minus 23%, starting from the day following the date of early termination of the compulsory motor liability insurance policy.

Deadlines for contacting an insurance company

It is important to know that if the car is sold, the money will be returned not from the moment the purchase and sale agreement is concluded, but from the moment the policyholder writes a termination application. And if the vehicle was sold in May, and the policyholder only found time two months later to contact the insurance company, it will no longer be possible to return the money for these overdue months. Thus, the sooner the car owner comes to the office after selling the car, the greater the amount he will be credited for return.

But as for the death of a vehicle or the death of a citizen (owner/policyholder), the date of early termination of the contract will automatically be considered the date of the incident. In these cases, there is no need to rush to the insurer.

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What documents are required to terminate the contract?

Original MTPL insurance policy and payment receipt (if preserved). They will need to be returned to the company.
A photocopy of the passport of the policyholder (his representative under a notarized power of attorney or heir).
A photocopy of the purchase and sale agreement or certificate of invoice.
Recycling certificate, if the car was scrapped.
A photocopy of the death certificate (if the event took place). In this case, you will also need to provide a copy of the inheritance certificate, or a notarized certificate of imminent inheritance. And in this case, it is necessary to understand that, according to current legislation, inheritance does not occur immediately, but after 6 months from the date of death. That is, the heir will not be able to receive money from the insurance company earlier. The situation is even more complicated when there are several heirs. Then the payment will be divided proportionally among all heirs.

Some companies may also ask you to provide:

A copy of the title with a note about the new owner (we will talk about this controversial issue below).
A copy of the passbook with bank details (in the event that it is not customary for the insurance company to pay in cash).

It’s best to call the numbers listed in the MTPL policy in advance and find out exactly the list of required documents. Do not forget to make a copy of the surrendered policy, as well as the termination statement, so that in case of delay in money you have documents confirming the intention of the insurance company to pay the money.

Who gets money when MTPL insurance is terminated?

According to the rules of OSAGO (clause 34), part of the unused premium is returned:

the owner of the car;
to the policyholder, if he is also the owner of the vehicle;
the policyholder, if he has a notarized power of attorney from the owner confirming his right to receive money from organizations;
heirs of the deceased policyholder.

If a car owner sells a vehicle under a “general power of attorney”, legally remaining its owner, it is not at all necessary to be indignant at the fact that they do not want to terminate the contract; it is enough to simply enter the new “owner” into the insurance policy, charging him a certain compensation for inclusion in the insurance.

When to expect money and what to do if it doesn’t arrive on time?

In the event that immediate payment in cash from the cash desk is not provided, the company is obliged to transfer them to the policyholder’s bank account within 14 calendar days from the date of writing the application for early termination of the contract. As a rule, the transferred money arrives on the card or book even earlier.

But if after two weeks the money has not been transferred, it means something went wrong. Do not delay asking questions to the insurance company: contact the office, perhaps the employees themselves will find out at what stage the trace of the payment was lost, try to find out in the accounting department of the insurance company the number of the payment order to the bank.

If this does not help or you are faced with complete indifference to your problem, go to the management of the local branch of the company and threaten legal proceedings. When such activity does not lead to anything, most likely they are not going to pay you, and it’s time to go to the RSA, FSSN and the court. This is where previously made copies of the policy and application come in handy. Although, it is fair to say that in large insurance companies the termination process is quite streamlined and does not cause any particular complaints from clients.

Controversial issues and frequently asked questions

When I want, then I’ll terminate it!

Many car owners are outraged that they cannot terminate the MTPL agreement at any time of their own free will. Indeed, there can be many reasons: reluctance to be served by a given insurer, departure for a long time, illness, car breakdown, refusal to drive, etc. Referring to the rules and the law on compulsory motor liability insurance, insurance companies are absolutely not ready to terminate the contract for reasons not provided for by law. But clause 33.1 of the rules reads as follows:

The policyholder has the right to terminate the compulsory insurance contract early in the following cases:

revocation of the insurer's license in the manner established by the legislation of the Russian Federation;
changing the owner of the vehicle;
other cases provided for by the legislation of the Russian Federation.”

Therefore, the most stubborn policyholders, guided by the fact that “their own desire” is the notorious “other cases”, go to trial and manage to prove that they are right. But such precedents happen extremely rarely and do not reflect reality.

On what basis did they retain 23%?

This is another issue on which disputes, due to the imperfections of our legislation, have not stopped since compulsory car insurance was introduced. From the point of view of the insurance company, by withholding 23% upon return, it is acting legally. There is a structure of the MTPL insurance tariff approved by the Government of the Russian Federation, which is as follows:

77% – net rate (this part of the amount paid by the policyholder goes towards payments);
20% – company expenses for conducting business (policy maintenance, forms, equipment, employee salaries, etc.);
3% is transferred to the RSA to form reserves for compensation payments (2% – reserve for current compensation payments + 1% – reserve for guarantees).

Thus, 23% are the costs that the insurance company will incur in any case: the client will remain with the company for the entire insurance period or terminate the contract ahead of schedule. The logic of auto insurers is, in principle, clear. Moreover, the vast majority of MTPL clients do not even think of being indignant about this.

But some savvy and principled motorists very actively object to what they consider to be illegal deductions - they write dissatisfied reviews about the work of insurance companies, make claims and go to court. After all, in the Civil Code of the Russian Federation and the rules of OSAGO there is not a single hint of 23%, but only dry information:

The insurer has the right to a portion of the insurance premium in proportion to the time during which the insurance was in force (Civil Code of the Russian Federation, Art. 958);
The insurer returns to the policyholder part of the insurance premium for the unexpired term of the compulsory insurance contract (MTPL rules, clause 34).

The policyholders' objections are absolutely legitimate. That is why car owners who go to court often return the 23% withheld by the company. There are every chance and many precedents for this. There are situations when the case does not even come to court. It is enough to send registered letters to the RSA and FSSN and a pre-trial claim to the insurance company to get your money back.

Why do you need a copy of the PTS when terminating OSAGO?

Some insurance companies require, when terminating the MTPL insurance contract, to provide a copy of the vehicle title with a note about the new owner. Let us immediately make a reservation that this requirement is not legal. For the insurer, a certificate-invoice or a purchase and sale agreement should be sufficient. And insurance companies know this, but they deliberately mislead clients. For what? A smart policyholder who wants to break off relations with the insurance company for a reason that does not fall under the rules (they are listed above) can do the following: draw up a handwritten purchase and sale agreement, on the basis of which the insurance company will be obliged to terminate the contract and return the money for the insurance. Whether the car is actually sold or not is a personal matter for each car owner. So the company wants to hedge its bets and demands PTS in order to stop attempts at “illegal” termination.

Will money be returned for the unused period if there were payments?

If the insurance company tries to underestimate or not return money at all upon termination of the contract, citing the fact that there were payments under it, this is unlawful. When terminating a compulsory motor liability insurance policy, unprofitability is not taken into account; part of the premium for the unused period must be returned according to the usual scheme - proportionally (minus 23%, if the policyholder has no claims on this topic).

Let's sum it up

Termination of an MTPL agreement does not always go smoothly. Not all aspects are clearly defined in Russian civil and insurance legislation, and not everything is interpreted unambiguously. If the offended policyholder has a desire to prove that he is right and the legislation allows this, get your way. There are more and more cases where the judicial system takes the side of policyholders in the above-mentioned controversial issues. Another thing is that the vast majority of car owners do not try to delve into the issues of termination and are not interested in calculating the return. And if there is little time left before the expiration of the compulsory motor liability insurance policy, some are simply too lazy to go to the office “because of the pennies.”

General questions (conclusion, amendment, termination of the MTPL agreement)

Article 17 of the Law on Compulsory Motor Liability Insurance establishes compensation for disabled people who paid an insurance premium under a compulsory motor liability insurance agreement in the amount of 50% of the insurance premium. Compensation is carried out by government authorities after payment of the insurance premium. In addition, state authorities of the constituent entities of the Russian Federation and local governments have the right to establish other categories of citizens who receive partial or full compensation for the paid insurance premium.

Also, citizens have the right to enter into an MTPL agreement taking into account the limited use of the vehicle (for example, for the purpose of using the vehicle only in the summer), which entails a significant reduction in the amount of the insurance premium.

In accordance with Article 445 of the Civil Code of the Russian Federation, an insurance company has the right to consider an application for concluding an MTPL agreement within 30 days from the date of its receipt.

In this case, the policyholder has the right to conclude a compulsory motor liability insurance agreement in electronic form. The process of drawing up this agreement is structured in such a way that the MTPL policy is sent to the policyholder immediately after payment.

In accordance with clause 1.7. MTPL Rules When concluding a MTPL contract, the insurer has the right to inspect the vehicle. The place for inspection of the vehicle is established by agreement of the parties. If no agreement is reached regarding the place of inspection of the vehicle or in the case of concluding an electronic MTPL agreement, the insurer will not conduct an inspection of the vehicle.

To make changes to the MTPL agreement, the policyholder must submit a corresponding application to the office of the insurance company with which the MTPL agreement was concluded.

The insurer, in turn, makes changes to the MTPL insurance policy, as well as to the automated compulsory insurance information system (AIS MTPL) no later than five working days from the date of changes to the insurance policy.

In this case, changes to the insurance policy are recorded by making an appropriate entry in the “Special Notes” section indicating the date and time of making the changes and certifying the changes with the signature of the insurer’s representative and the insurer’s seal or by issuing a reissued (new) MTPL insurance policy within two working days from the date return by the policyholder of a previously issued insurance policy. Also, a re-issuance note is made on the new policy indicating the date and number of the re-issued (old) policy.

According to clause 1.14 of the MTPL Rules, changing the owner of a vehicle is one of the cases when the policyholder has the right to terminate the MTPL agreement early.

Based on clause 1.16 of the MTPL Rules, the insurer returns to the policyholder part of the insurance premium in the amount of its share 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 (period of use of the vehicle).

The date of early termination of the MTPL agreement is the date the insurer receives a written application from the policyholder for early termination of such an agreement and documentary evidence of the fact that served as the basis for the early termination of the agreement.

In accordance with Art. 8 and paragraph 4 of Art. 10 of the Law on OSAGO, the share of the insurance premium directly intended for making insurance and compensation payments cannot be less than 80% of the insurance premium. In case of early termination of the MTPL agreement in cases provided for by the MTPL Rules, the insurer returns to the policyholder part of the insurance premium in the amount of the share of the insurance premium intended for making insurance payments and falling on the unexpired term of the MTPL agreement.

Moreover, in accordance with the Directive of the Bank of Russia on tariffs for compulsory motor liability insurance:

1) 77% of the insurance premium goes to the formation by the insurer of insurance reserves intended directly for making current insurance payments;

2) 3% of the insurance premium goes to the formation of RSA funds for making compensation payments;

3) 20% of the insurance premium under a compulsory insurance contract goes to cover the costs of the insurance organization associated with the conclusion and maintenance of MTPL contracts.

Thus, 23% of the insurance premium is not included in the calculation for the return of the insurance premium upon early termination of the MTPL agreement.

Revocation (suspension) of an insurance company’s license is not grounds for “automatic” termination of the MTPL agreement.

In this case, you need to contact the insurer with whom you have a compulsory motor liability insurance agreement. It must be borne in mind that in accordance with paragraph 4 of Article 32.8. The Law of the Russian Federation “On the organization of insurance business in the Russian Federation” from the date of entry into force of the decision to revoke the license, the insurance company has no right to enter into MTPL contracts, as well as make changes that entail an increase in the obligations of such an insurance company in the relevant contracts. An increase in liabilities refers to any changes that entail an additional payment of the insurance premium, as well as the addition of new drivers.

To terminate the MTPL agreement, you must contact the insurer with whom you have entered into an agreement. In accordance with clause 1.16 of the MTPL Rules, in this case, the insurer returns to the policyholder part of the insurance premium in the amount of its share intended for insurance compensation and falling on the unexpired term of the compulsory insurance contract or the unexpired term of the seasonal use of the vehicle (the period of use of the vehicle).

How to avoid financial losses when terminating an MTPL agreement: step-by-step instructions

An MTPL policy is a mandatory document that every driver of a vehicle must have. In essence, the policy is vehicle insurance in case of an accident, guaranteeing payments to the injured party. But there are situations in which the procedure for terminating the contract occurs. In the article we will tell you whether it is possible to terminate a policy and in what cases this is permissible, how this is regulated, and what are the rules for terminating additional insurance?

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

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Is it possible to terminate the policy?

Termination of a motor vehicle liability contract is the termination of obligations both on the part of the car owner and on the part of the insurer. The policy may be terminated early . This can happen either at the initiative of the policyholder or at the initiative of the insurance company, and after this procedure, all obligations are released from both parties. Termination of the policy is regulated by the following laws:

At the initiative of the policyholder

When changing the owner of the vehicle (in connection with a purchase and sale agreement, gift or exchange, but not a general power of attorney).
When disposing of a vehicle.
In the event of the death of a car as a vehicle (as a result of an accident).
Upon the death of the owner or policyholder of the vehicle.
When a car is stolen.
Upon liquidation of a legal entity that was the owner of the vehicle.

In some cases, the insurance company refuses to terminate the contract, for example:

upon deprivation of the driver's right to drive a vehicle;
when the driver refuses to drive the vehicle (age, health problems, etc.).

Very often, drivers go to court regarding the refusal to terminate, based on the reason for the refusal or deprivation of rights, but judicial practice shows that in most cases, the court takes the side of the insurance companies, not satisfying the insured's claim .

At the initiative of the insurer

If incorrect information is identified that affects the level of insurance risk.
When identifying forged documents submitted when applying for a policy.

The insurance contract is terminated when one of the above conditions occurs, but as practice shows, less than half of people resort to the procedure for canceling insurance obligations. This is due to the lack of awareness of the citizens of our country with such a procedure and the procedure for its implementation.

Those same motorists who knew about this procedure resorted to its implementation, thereby returning their money for the period of non-use of insurance. Insurance funds are returned in all of the above cases. The possibility of obtaining insurance is excluded if the legal entity is liquidated . Also in case of termination at the initiative of the insurer.

Where to begin?

The package of documents for terminating the insurance contract includes:

OSAGO policy (original).
Application for termination of insurance obligations.
Applicant's passport.
Receipts and checks that confirm payment of the cost of the policy and insurance premiums.

The insurer has the right to require additional documentation, namely:

The purchase and sale agreement for the vehicle for which the policy was issued.
Death certificate (copy).
A vehicle disposal certificate or a certificate stating that it cannot be restored.

This list is incomplete; check with your insurance company for the exact list of additional documentation. This can be done in person, by phone or online.

The procedure for terminating the contract is as follows:

The policyholder collects all the necessary documents (described above).
Appear at the insurance company.
Write an application for cancellation of the agreement and attach a package of documents to it.
Provide the necessary details for transferring the remaining insurance amount (not required by all insurers).
Wait for the decision of the insurance company.
If the decision is positive, receive compensation.

How is the compensation amount calculated?

It is worth noting that, by law, insurance companies withhold 23% of the cost of insurance - this is the insurer’s commission for providing their services to the policyholder. To calculate compensation for termination of a contract, you must use a special calculation formula:

D – amount of compensation;
P – cost of compulsory motor liability insurance at the time of its registration;
N – time remaining until the expiration of the policy (number of months).

Here is an example of calculating the amount of compensation:

The cost of compulsory motor liability insurance is 7560 rubles, until the end of the period – 4 months, we get the following:

(7560-23%)*(4/12) = 578 rubles - this is the amount that must be returned for insurance as compensation.

How does this happen when selling a car?

The MTPL policy becomes useless for the seller of the vehicle and the insurance contract must be terminated in connection with the sale of the car. If there is still sufficient time before the expiration of the insurance period, then an advisable solution would be to return the unused amount of the policy.

Necessary documents for selling a car:

Passport of a citizen of the Russian Federation (car owner).
Car purchase and sale agreement.
OSAGO policy (original).
Registration certificate of the car of the new owner (not all companies require).
Checks and receipts for regular payments.

If the company does not issue cash, but works with electronic transfers, then an additional document will be the bank account number to which the compensation will be transferred.

Before contacting your insurance company, consult with an experienced attorney who has dealt with similar situations. This step will help you avoid negative aspects and subsequent contact with the insurance company.

If the driver sold his car, the sooner he contacts the insurance company with an application to terminate the contract, the greater the amount of compensation he will receive. This is due to the fact that the calculation of the balance amount for the MTPL policy is made from the day the documents are submitted, and not when a decision is made on them.

For example, if a car was sold in September, but the car owner submitted an application only in November, then he will not receive payments for September and October.

Procedure

If, due to certain circumstances (they are listed above in the article), the policyholder decided to terminate the contract with the insurance company, then he should come with a package of documents to the insurance company and write an application to terminate the insurance contract.

The application for termination of the insurance contract must contain the following information:

name of the insurance company;
personal data of the policyholder (passport details, place of registration, full name);
MTPL policy number;
specific reasons for refusal;
request for refund;
return method (cash, electronic transfer);
list of documents attached to the application.

The application can be sent by mail, but subject to a preliminary call to the office of the insurer, after which you can send the application and documents by registered mail with acknowledgment of receipt.

Required documents for sending documents by registered mail:

applicant's passport;
OSAGO policy in the original;
a receipt or check for payment of the cost of the policy;
other documents, the list of which depends on the reason for termination.

If the cause is the death of the owner, then it is necessary to present a copy of the death certificate, as well as documentation that confirms the relationship of the deceased and the applicant.

If the reason is the disposal of the vehicle, then an additional document will be a vehicle disposal certificate issued by the traffic police. If it is impossible to repair the vehicle (for example, in case of an accident), an expert’s opinion “on the impossibility of restoring the vehicle” is attached to the main package of documents.

If a car is stolen, it is necessary to submit a decision of the authorized body “to initiate a criminal case regarding the theft of a vehicle.” Selling a vehicle involves submitting a sales contract to an insurance company .

Refusal of additional services

Most insurance companies, when selling a MTPL policy, try to impose additional insurance services. These include:

Insurance of movable and immovable property. In this case, various situations are taken into account, ranging from car theft to flooding.
Passenger health and life insurance. This is one of the most expensive services provided by insurance companies, which rarely justifies itself.
Additional services. This includes the provision of a free lawyer in case of an accident, an emergency commissioner visiting the scene of an accident, as well as the provision of a free tow truck in case of an accident.

Since the beginning of 2018, a law of the Central Bank of the Russian Federation has come into force, which obliges insurance companies to return the money spent by policyholders on voluntary insurance. The refund period is 14 days from the date of conclusion of additional services.

This time (2 weeks) is called the cooling period, during which the insurance company is obliged to return the funds. An exception is the situation if an insured event occurs during the cooling period .

In order to terminate additional insurance, you will need the following documents:

application for refund (in two copies);
applicant's passport;
vehicle registration certificate (copy);
MTPL agreement (copy);
additional insurance agreement (copy);
current account number (if payment will be made by bank transfer).

After collecting the necessary documentation, the procedure will be as follows:

Contact your insurance company and get an application form from them.
Fill out the application and attach a package of documents to it.
Submit your application and package of documents to the insurance company, insisting on registering your application as an incoming document.
On the second application form, which remains with the policyholder, a note is made indicating acceptance of the documents for execution.

Deadlines and costs

If the driver has collected and submitted a complete package of documents, then the insurance company must return the money for termination of both the MTPL policy and additional insurance within 14 days from the date of filing the application.

If this does not happen, then 1% of the refund amount is automatically charged in favor of the policyholder. 23% is included in the calculation of the balance of the MTPL policy . These funds are used to pay for the services of the insurance company and the contribution to the Union of Russian Insurers. This 23% will definitely be withheld from the amount that will be returned to you upon termination of the contract (see the article above for the procedure for calculating the balance of funds).

Conclusion

Early termination of a compulsory motor liability insurance agreement is not a myth, but a reality. This action is regulated by the regulatory legal acts of the Russian Federation. But it is worth considering that it is not possible in all cases to return money for the unexpired period of using the insurance.

If you decide to sever your relationship with the insurance company due to certain circumstances, then carefully study this article, in which you will find answers to all your questions about early termination of obligations with the insurer.