Refund of insurance after selling the car

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

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

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

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

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

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

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

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

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

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

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

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

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

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

How much money will be charged?

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

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

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

Why is 77% of the amount charged?

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

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

If the insurance company refuses to terminate

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

Maxim Sedov, Insurance Disputes Agency:

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

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

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

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

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

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

Procedure for returning part of the insurance premium

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

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

preparation of necessary documents;

notification to the insurer of termination of the contract;

receiving funds.

What documents will be required

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

identification document;

car purchase and sale agreement;

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

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

receipt for payment of insurance premium (if available).

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

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

Visit to the insurance company

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

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

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

Calculation procedure

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

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

Calculation rules

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

K – amount of compensation;

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

D – number of unused months of insurance.

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

Calculation example

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

(9602 – 23%)*(2/12)=1232.25 rubles.

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

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

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

death of the policy holder or vehicle owner;

loss of a car (theft, total loss);

revocation of the insurer's license.

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

Let's sum it up

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

Early repayment of OSAGO: how to get money back when selling a car

​Terminating a contract with a car insurer may be necessary in different cases, but most often the MTPL policy becomes unnecessary when the car is sold and the insurance period has not yet expired. Unlike the CASCO agreement, which can be terminated at any time without explanation and receive part of the money back, early termination of the OSAGO agreement requires valid reasons, such as the sale of a car. There are no difficulties in this procedure, so do not be afraid to apply for a refund. Today we will talk in detail about how to get your money back for compulsory motor insurance when selling a car.

What circumstances allow you to terminate the contract?

Russian legislation gives the motorist every right to contact the insurer in order to terminate the MTPL insurance contract. In return, the insurer is obliged to make calculations and return to the policyholder the unused portion of the amount, taking into account deductions in its favor.

In what cases is the contract terminated with the subsequent return of unused funds to the client:

1. Selling a car . The most common case. The new owner of the car will no longer be able to use the insurance issued to the previous car owner; he will have to draw up a new document. Accordingly, the previous insurance, even if it has not expired, becomes effectively cancelled. When selling a car, a person is not obliged to inform the insurer that he no longer needs the policy; he can at least throw it away. But since insurance costs a lot of money, it is better to contact the insurer for a refund of the unspent amount. Naturally, the more days before the end of the contract, the greater the refund amount. Attention : the amount of payments depends on the efficiency of the driver, since the calculation is carried out from the moment the application is submitted, and not from the day the car changes hands.
2. The vehicle cannot be restored . This is also a fairly common reason for contract termination. This usually happens after a serious accident or if the owner decides to dispose of his car under a government program.
3. The insurance company lost its license . For those people who are faced with such a situation, it is already quite difficult to return unspent funds; this may have to be done through the courts. In this case, it will be much easier for many to wait until the end of the contract, and until then, calmly drive their car. If a company loses its license, many of its obligations are assumed by the Russian Union of Auto Insurers, which will make payments in the event of an accident that occurred due to the fault of clients of an organization with a revoked license. In this case, it is necessary to separate the revocation of a license and the limitation of the validity of a license. In the latter case, the company will lose the right to enter into new contracts, but it will remain the executor of obligations under previous contracts.
4. Death of the vehicle owner and policyholder . In this case, the heirs of the deceased will be able to receive the funds.

You can terminate the contract without explaining these reasons, but in this case you cannot count on the insurer returning unused funds.

Procedure

If the reason for terminating the contract is one of the first two possible reasons from the list in the previous section, you should contact directly the company with which the MTPL agreement was concluded. To receive a refund, submit an application accompanied by the necessary documents. The list of such may vary depending on the requirements of the insurer and the reasons for termination of the contract. May require:

• copy of passport and original;
• the original MTPL policy (it remains with the insurer, but just in case it is better to keep a copy of the policy, which may be needed, for example, in the event of litigation in court);
• a copy and original of the car purchase and sale agreement;
• a copy of the vehicle passport indicating the first and last name of its new owner;
• a receipt for payment of insurance premiums (it is also advisable to keep copies of the receipts for yourself; on the contrary, you can give copies to the insurer, leaving the originals with you);
• vehicle disposal certificate.

Not all companies practice issuing cash, so you will additionally need to take a certificate from the bank indicating the details of your current account.

The application itself is quite simple. In the main text, you need to indicate the reasons for terminating the contract, demand the return of the unused amount (in fact, two types of amounts : the redemption amount directly, which the driver did not manage to spend completely, and funds that were paid as insurance premiums) and indicate to which account money needs to be transferred. The application must be drawn up in two copies. You need to keep one document after the insurance company specialist has written the incoming number and date of receipt on it.

Not only the policyholder himself, but also his authorized representative can submit an application. Although if you do this personally, there is a greater likelihood that the funds will be returned as soon as possible.

Sample application for the return of compulsory motor liability insurance when selling a car

To the company (name of organization

insurer and legal address)

from the insurer Ivanov Ivan Ivanovich,

residing at the address: (specify the exact

address and telephone number for contact)

APPLICATION FOR EARLY REPAYMENT OF MTPL AGREEMENT

In June 2016, between me, Ivan Ivanovich Ivanov, and your company, an agreement was concluded for compulsory motor third-party liability insurance when using a vehicle (we indicate the make of your car and its model, state registration marks, policy number and expiration dates). According to the Civil Code of the Russian Federation (Article 958), I, as the policyholder, have the right to cancel the contract at any time. Based on the rules of Decree of the Government of the Russian Federation No. 263, adopted on May 7, 2003 (taking into account subsequent amendments), I inform you that in case of early termination of the contract for the reasons specified in this Decree, the insurer is obliged to return to the policyholder the funds for the unused period of validity of the MTPL policy.

Based on the above, I ask you to terminate the MTPL contract (indicate the number and validity period) from the moment of filing the application and return to me a proportional part of the insurance premium for the unused period of the contract. The reason for termination is the sale of the car.

Please transfer the funds to my bank account using the specified details (enter the bank details below).

Attachments (hereinafter we list all additional documents that we attach to the application, for example, in this case, a mandatory document, in addition to a copy of the passport and the original OSAGO policy, will be a copy of the car’s passport, the purchase and sale agreement).

On the left we indicate the date of submission of the application, and on the right we put our signature and write our last name, first name and patronymic.

Let us remind you that the application must be written in two copies (or a copy made), give one to the company, and ask for a mark on the acceptance of the document on the second. You can also use the option of sending the application by registered mail with acknowledgment of receipt.

How much can you expect?

How to calculate the refund amount under compulsory motor liability insurance upon termination? Before submitting your application, it would be a good idea to calculate the amount that should be returned to you after termination of the contract. It does not need to be indicated in the application; usually companies carry out the calculation correctly, taking into account, however, in their favor the maximum possible deduction amount. It is 23 percent - the organization takes 20 percent for business management (for the production of forms, use of equipment, payments to employees, etc.), and transfers three percent to the Russian Union of Auto Insurers (from this money a fund is formed for paying compensation).

The calculations are quite simple using the following formula:

Refund amount = (A-23%)/365*B (where A is the annual cost of the policy, B is the number of unused days).

Let's say the cost of the policy was 20 thousand rubles. We subtract 23 percent from this amount. 16 thousand 400 rubles remain. One day of insurance in this case will cost 44 rubles 93 kopecks. You decided to terminate the contract exactly 215 days after the conclusion of the transaction, you have an unused period of 150 days, which means that the unused portion of the funds is 6 thousand 739 rubles. This is exactly the amount the insurer must return to you, but only if the contract was terminated for the reasons specified in the MTPL rules.

How quickly will the company return the funds?

According to the law, no more than 14 days after registration of the application. During this period, the company is obliged to transfer money to its former client to the bank account specified in the application. It’s even easier if the organization practices issuing funds in cash. You need to find out this in advance so that in your application you can indicate another method of refund instead of bank details. In this case, the waiting time is reduced to a minimum, and the driver will most likely be able to receive the money right on the day of application.

If the insurer does not fulfill its obligations and does not return the amount in due time, the policyholder can write a written complaint addressed to the head of the organization, and also, if the case does not move for a long time, contact the prosecutor’s office, the Russian Union of Auto Insurers and the judicial authorities. For violations, the company may be deprived of its license.

What to pay attention to

Every holder of an MTPL policy needs to know that when selling a car that was specified in the policy, not only the policyholder himself, but also the new owner of the vehicle has the right to receive unused funds. It is unlikely that the new owner will immediately run to the insurer with a request to pay him the amount unused by the previous owner of the car, but this option is still possible.

Previously, experts advised that when selling a car, first settle the issues with the insurer, and then sign a sales contract (in this case, a certificate-invoice would serve as confirmation of the transaction), but now it is unreasonable to do so, since the re-registration of rights to a car has an extremely short time frame, only 10 days, and it’s better to spend time on this procedure.

The easiest way is to get a receipt from the new owner that he will have to pay compensation to the former owner of the car for the insurance policy. Better yet, include in the price of the car the amount due under insurance for return.

Another important point: some policyholders are not satisfied that the company returns the amount taking into account the deduction of 23 percent. In principle, such disturbances are justified. The Civil Code of the Russian Federation (Article No. 958) states that upon termination of an insurance contract, the organization retains an insurance premium equal to the period of validity of the document. There is nothing mentioned there about deductions. There is no mention of withholding in the current MTPL rules approved by the Government. The problem is that today there is no law on the termination of an MTPL policy, and therefore there are no clear and strict instructions regarding this operation. In practice, there is just such a return scheme taking into account deductions; its inappropriateness can be proven only through the court, which is not always justified.

But there is a way out . With minimal losses, the contract can be terminated by transferring the balance to a new MTPL policy, for example, if the policyholder has already bought a new car, or to a CASCO contract issued by the same company. However, the recommendation does not always work, since companies may evaluate their work differently.

Please also note that the policyholder requires that you apply for unused funds no later than two months after the sale of the car. If this point is not met, you may well be denied payments. The shorter the unused contract period, the lower the payment amount. And indeed, if there is a week or a month left before the expiration of the policy, the amount will be small; perhaps the person will spend more money on traveling to the policyholder than he will receive later. But if the policy expires after 3 months or more, then it is better to apply for a refund.

If you do not get your money back for compulsory motor liability insurance when selling a car, or you have any other questions, then our on-duty lawyer online is ready to answer them promptly.

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

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

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

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

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

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

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

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

Receiving compensation

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

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

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

Re-registration to a new owner

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

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

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

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

Re-registration to another car

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

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

How to get my money back?

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

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

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

Calculation of the refund amount

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

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

The procedure for terminating the insurance contract

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

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

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

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

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

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

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

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

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

Refund nuances

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

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

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

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

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

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

Conclusion of an agreement on the transfer of a policy

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

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

Preparation of documents

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

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

From the buyer:

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

Visit to the IC office

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

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

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

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

Procedure for renewing a policy for another vehicle

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

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

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

Reasons for insurance company refusals

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

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

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

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.