Refund of money for unused MTPL 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.”

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 MTPL policy

Refund for policy

We return money for the unused period of validity of the MTPL policy if termination occurs for one of these reasons:

changing the owner of the vehicle;
death of the policyholder or owner;
destruction (loss) of the insured vehicle.
revocation of the insurer's license in the manner established by the legislation of the Russian Federation;
liquidation of the insurer.

In what cases is the money for the policy not returned?

Refunds for the unused period of validity of the MTPL policy are not made:

upon liquidation of a legal entity - the policyholder;
when identifying false or incomplete information provided by the policyholder when concluding a compulsory motor liability insurance policy, which is essential for determining the degree of insurance risk;
in other cases provided for by the legislation of the Russian Federation.

How does a refund work?

The refund amount is calculated in proportion to the number of days remaining until the end of the insurance period. We withhold 23% of the amount to be refunded based on clause 1.16. Rules of OSAGO and the structure of insurance tariffs approved by the Bank of Russia (Instruction of the Bank of Russia dated September 19, 2014 No. 3384-U).

In case of a refund of part of the insurance premium, the refund period is 14 calendar days. The deadline begins on the day following the date of submission of the complete set of documents.

Termination procedure

You must submit an application [download form] to the customer service office, which accepts applications for termination (specified in the notes to the offices)
When contacting the office, you must have a set of documents required to terminate your MTPL policy.

Our offices

Documents for terminating the policy

When contacting our office with an application for termination of the MTPL policy, you will need the following documents:

Passport or other document identifying the policyholder or his representative by proxy;
A notarized power of attorney from the representative of the policyholder, with the right to terminate insurance contracts and receive funds due upon termination of the insurance contract. If a representative of a legal entity applies, then you must have a power of attorney to terminate the insurance contract from the organization, certified by the signature of the authorized person and the seal of the organization;
Original MTPL policy;
Receipt for payment of the policy (if preserved);
To return money to a bank account, full bank details are required: personal account, BIC, INN, correspondent account, full name of the bank, branch (if provided).

If termination of the policy involves a refund, then additional documents must be provided confirming the basis for such termination.

When selling, you will need one of the following documents:

a copy of the vehicle registration certificate indicating the new owner;
a copy of the vehicle passport indicating the new owner of the vehicle;
a copy of the transfer documents indicating the disposal of the vehicle from the company, certified by the signatures of the manager and chief accountant, certified by the seal of the organization;
purchase and sale agreement, exchange, gift or any other civil law agreement certifying the transfer of ownership to another person, with an act of transfer of the vehicle to the new owner.

In case of death, one of the following documents will be required:

Agreement on the complete destruction of the vehicle and transfer of ownership rights and the Certificate of acceptance of the transfer of the vehicle (if there was an application under the CASCO agreement)
A certified copy of the liquidation act signed by the head of the organization, to which is attached the conclusion of a technical expert (expert organization) on the impossibility of restoring the object;
A certified copy of the conclusion of an expert technician (expert organization) on the complete loss of the vehicle (on the impossibility of restoring the vehicle);
A certified copy of the vehicle disposal report drawn up by an organization classified by the Ministry of Industry and Trade as a vehicle recycling center;
A certified copy of the resolution to suspend the criminal case of theft or theft;
A certified copy of the fire report issued by the competent authority in the field of fire safety (Ministry of Emergency Situations, State Fire Department, State Fire Service);
A certified copy of the procedural decision (decree, determination) of a law enforcement agency or court establishing the loss of the vehicle.

In case of car theft/theft

A certified copy of the resolution to suspend the criminal case of theft or theft;

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.