Is it possible to cancel MTPL insurance?

How to make a refund of MTPL insurance when selling a car and other situations

In this article we will look at the grounds and conditions for terminating the MTPL agreement. We will find out when early termination of the contract is impossible and whether it is necessary to provide the reason.

We will also describe the procedure for the car owner in the event of early termination and find out whether it is possible to terminate the car insurance agreement via the Internet, as well as the timing of termination of the insurance policy.

When is it possible to terminate a contract: grounds and conditions

According to the rules of compulsory insurance, it is possible to terminate the contract with the return of the corresponding amount of payments in the following cases:

• in case of registration of a car purchase and sale transaction upon change of owner;
• the car has received irreversible damage that cannot be repaired;
• the car was stolen;
• due to the death of the client;
• in case of bankruptcy of the insurance company.

The calculation of cash payments of the required amount should be counted on the next day after the termination of the contract comes into force. As a rule, the refund amount is 77% of the paid amount of the remaining insurance period.

When early termination is not possible

It is possible to terminate a contractual relationship with an insurance company at any time, but cash payments upon termination are not always provided for.

In what cases is it not advisable to terminate a contract?

If the grounds for cancellation of the document do not imply the return of funds to the client, then there is no objective reason to terminate the contractual relationship, since it is not possible to return the amount of money spent.

Is it necessary to provide a reason?

The client is obliged to inform the insurance company of the reason for termination of the insurance if he plans to return the amount of payments due, since on this basis the insurance company can return the required amount of money.

The client also needs to document the stated reason, for example, by providing a copy of the car purchase and sale agreement or the policyholder’s death certificate.

The procedure for early termination of the MTPL contract at the initiative of the policyholder

The client must submit a corresponding application to the insurance company; it can be submitted in two copies, on one of which the insurer must put a stamp on acceptance of the application for consideration. It is also necessary to collect the required package of documents.

List of required documents, application

You must provide the following package of documents:

• compulsory insurance policy;
• statement;
• document confirming payment (if available);
• a copy of the client’s passport or a copy of the client’s official representative’s passport;
• a copy of the purchase and sale agreement (when selling a car);
• a document confirming the disposal of the vehicle (in case of disposal);
• a copy of the death certificate (if the client dies);
• a copy of the inheritance certificate (upon the client’s death). Payments occur only after the actual entry into force of the inheritance, namely six months after the date of death;
• client's bank details (in case of non-cash payment method).

The application does not have a strictly prescribed form of completion, but must contain the following information:

1. Compulsory insurance policy number.
2. FULL NAME. owner of the insured vehicle.
3. State registration plate of the car.

Deadlines for contacting the insurance company in case of sale of a car, death of the policyholder and in other cases

If you are selling a car, you must visit the insurance company in advance and write a corresponding application, since the date of registration of the car purchase and sale transaction is not the date of cancellation of the insurance contract in the absence of filing an application with the insurance company. If the client sold the car and contacted the insurer only after that, then the calculation of cash payments begins precisely from the date of the client’s application and termination of the insurance.

In the event of the client's death, insurance is canceled in accordance with the actual date of death. In this case, you can contact the insurance company at any time; the amount of cash payments cannot be changed.

Refunds: to whom and when is money paid?

Refunds are processed as follows:

1. Payment in cash immediately after the document is terminated.
2. Within two weeks by bank transfer to the specified client details.
3. Six months after the date of death of the client (in case of acceptance of the inheritance).

Is it possible to terminate via the Internet? What to do with e-OSAGO?

Motorists have the opportunity to issue an electronic insurance policy (E-OSAGO). An electronic policy, like any other, can only be terminated with a personal visit (or a visit of an authorized representative) to the insurance company.

REFERENCE. The client can also send a registered letter to the insurer with the relevant application.

Terms of termination of the policy

The policy expires the next day after the termination of the insurance.

Controversial issues and frequently asked questions

Let's look at the cases in which disagreements may arise between the car owner and the insurance company.

Cancellation of insurance at any time

Often, clients of insurance companies consider it inappropriate not to be able to cancel insurance at any convenient time. The insuring party gives a negative answer to the client if the reason for termination is not established by law. According to the law, the insurance company is obliged to cancel the contractual relationship in the following cases:

• revocation of the policyholder's license;
• change of car owner and other cases noted at the legislative level.

There are clients who seek termination of the contract in court, but such cases are extremely rare.

Refund of partial amount of money after cancellation

The insurance company retains 23% of the paid amount for services provided.

The company does not violate the client’s rights, since payment for the policy consists of:

• 77% - net - policy rate;
• 23% - actual customer service, contributions to the Russian Union of Insurers.

Withholding 23% of the amount is a necessary condition for the functioning of the insurance company and the services it provides. If the client nevertheless decides to return the full amount of money paid in court, then the decision, as a rule, is made in his favor, since such a percentage withholding is not specified by law. But before going to court, it is worth sending letters to the Russian Union of Insurers and the Federal Insurance Supervision Service. It is likely that already at this stage the client will be refunded the full amount of money.

REFERENCE. If the deadline for returning part of the cash payment is not met, the insurance company is obliged to pay the policyholder a penalty in the amount of one percent for each overdue day, but not more than an amount equal to the cost of the policy.

The insurer requires a copy of the vehicle's passport

Often, the policyholder requires the client to provide a copy of the title with the details of the new owner of the car during a purchase and sale transaction. This is an unlawful action on the part of the insurance company.

The client has the right to personally draw up a contract for the sale of the car and provide it to the insurer - this will already be a legal reason for canceling the insurance. There is no need to confirm the actual sale of the car.

Reduced amount of payments upon cancellation if insurance is used

The insurer does not have the right to reduce the amount of payment when canceling a contract with a client if timely payments of insured events occurred during the period of use of the insurance.

IMPORTANT. Refunds occur according to a standardized scheme.

Conclusion

According to the rules of compulsory motor liability insurance, there is a specific list of reasons that are the basis for the return of funds upon termination of insurance. To do this, you need to write an application and collect a certain package of documents. Refunds occur either on the day of cancellation of the document in cash, or within two weeks via bank transfer. You can terminate compulsory motor liability insurance by visiting the insurance company office in person.

The insurance company terminated the MTPL contract – does it have the right and will the money be returned?

1. The insurer can unilaterally terminate the MTPL agreement, but this requires a reason.
2. The only legal basis may be false information from a motorist when purchasing a policy, which resulted in an underestimation of its cost.
3. And in this case, the company is obliged to return the money for the unused insurance period.

From the article on the refusal to sell an MTPL policy, we know that the auto insurance contract is public, and therefore the insurer has no right to refuse to conclude it. But what if the insurance company sold us the insurance but then decided to cancel it? Does she have the right to do this, is there any compelling reason for this in the form of violations on our part? And, most importantly, is it possible to return the money for at least the unused period? Let's find out!

Can an insurance company terminate compulsory motor liability insurance in practice?

Yes. As of 2019, termination of a motor third party liability insurance contract is possible not only at the initiative of motorists, but also by decision of insurance companies.

This happens quite simply - you receive an official letter from the insurance company in the mail, which indicates that the current policy has been terminated and the contract will cease to be valid on a certain date. The reasons for this are also indicated.

Often companies such as Alfastrakhovanie, Ingosstrakh, and Rosgosstrakh are guilty of this.

Speaking of the grounds for termination.

Does he have the right?

Yes. But only for reasons prescribed by legal acts. For both parties, current legislation provides only certain grounds for termination of the contract.

And if for the policyholder (the one who purchased the policy) there are only 2 of them:

• You can terminate the MTPL contract when selling the car,
• if the insurance company's license has been revoked.

For the insurer, there is only one condition for unilateral termination of fulfillment of insurance obligations (clause 1.15 of the Insurance Rules) - if the motorist, when concluding the contract, provided incorrect information about himself, the drivers or the car, which resulted in an underestimation of the cost of the compulsory motor liability insurance policy.

1.15. The insurer has the right to terminate the compulsory insurance contract early in the following cases: identification of false or incomplete information provided by the insured when concluding the compulsory insurance contract, which is essential for determining the degree of insurance risk;

But only if incorrect information resulted in a change in the cost of the policy

Please note the last condition - the insurance company has the right to terminate the contract only if inaccurate information led to a decrease in the total amount you paid for compulsory motor liability insurance. If it doesn’t, then the termination is illegal.

But even if you knowingly provided false information, there must have been intent in this. Otherwise, termination is again illegal. This was indicated by the Supreme Court in practice in one of its definitions.

If the data is correct

In this case, look into your MTPL policy and look carefully at the coefficients used in the calculation - they are listed in the table at the bottom of the policy:

And compare them according to the data for you and your car. The fact is that an insurance company employee or agent could have made a mistake, depending on where you bought the policy. And in this case, alas, there is nothing to be done except return the money (more on this below), because checking the accuracy of the information is the responsibility of the policyholder, and the policy seller is not at all obliged to look at the data from the documents himself.

If the data is correct, then savvy motorists generally do not pay attention to such a notice of termination of the contract that arrives by mail.

In fact, this letter is really just a notification - a unilateral decision of the insurer. And, if it is illegal, then the contract cannot be terminated - even by agreement of the parties, as the law says. And therefore, if you have a policy in your hands, regardless of any letter, you will have a valid policy.

But it is still advisable to contact the insurance company for additional information about the reasons for termination.

Is it possible to return the money and how?

Can. Clause 1.16 of the same Insurance Rules, in turn, prescribes that if the MTPL contract is terminated by the insurance company on the basis of clause 1.15, then the insurance premium is subject to return, but not all, but that which is intended for insurance payment and minus the expired validity period insurance contract.

1. first we take the full cost of the policy,
2. from it we subtract 23% (non-deductible share approved by the Bank of Russia: 20% for company expenses, 3% for compensation payments to RSA),
3. then we calculate how much time has passed from the date of purchase of insurance to the date of your receipt of the letter where the insurance company terminates the MTPL contract,
4. As a result, we get the amount of money to be returned.

Please note that the date of termination of the contract is considered to be the day you receive a notification letter about this from the insurer (clause 1.16 of the Rules).

Let's say you paid 6,000 rubles for the policy on January 1, 2019. After exactly half the term, we received a letter stating that the MTPL policy had been terminated and was no longer valid. In this case, the calculation will look like this:

Refund amount = (6,000 - 23%) ÷ 2 = 2,310 rubles

Where we divide by 2, because exactly half of the policy has passed.

How to return?

You need to submit a corresponding application to the insurance company. In it, you can indicate the account details for a cashless transfer (presented in the example below) or your desire to receive cash at the insurer’s cash desk.

• Download the application form for a refund of money for the unused period of MTPL insurance upon termination of the contract at the initiative of the insurance company (DOCX format for machine completion).
• Download the form in PDF format (for handwritten completion).

This application must be printed and signed in 2 copies if you are going to submit it at the insurance office in person. The second copy is required in order for you to receive an acceptance mark with the incoming number. But be prepared for the fact that you will be illegally refused to put such a mark.

Therefore, it is advisable to send it to the insurer’s legal address by mail with a list of attachments and notification of delivery. It takes longer, but for the court you will have 100% proof of filing such an application.

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:

1. Death of the owner of the vehicle.
2. Complete structural loss of the vehicle.
3. Termination of the license of the insurance company.
4. 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 a contract with an insurance company under MTPL and get the money back?

In order not to lose money, car owners should know how to terminate a compulsory motor liability insurance agreement on favorable terms. The initiative in this matter belongs to the owner of the vehicle himself. It is he who, having gotten into trouble, begins to look for ways to terminate the MTPL policy and return the money. This event is preceded by various reasons: unsatisfactory quality of customer service, delay in due payment, basic disrespect. To be prepared for such surprises, you need to find out in advance how to terminate an electronic or regular OSAGO policy.

Cases of termination of the MTPL agreement

The complex of civil motor insurance OSAGO is a mandatory procedure. Therefore, every motorist should have an electronic policy. The client has the right to choose a truly reliable company that effectively protects the driver’s interests. Let's listen to the recommendations of experts in the field of automobile law.

Insurance is provided regardless of the type of transport. This does not include special equipment, for example, bulldozers, graders, scrapers. Car insurance for such cases has some specifics of its own.

The practice of car operation shows that motorists are increasingly coming to insurers to early cancel the MTPL agreement, which should still be valid for several months.

When considering such situations, experts recommend choosing insurers with a good portfolio and successful experience in this area:

1. Any car owner can terminate insurance early if, for any reason, the relationship with the employees and management of the selected company is not suitable for him.
2. A citizen has the right to come to his company, where he received an insurance certificate, terminate the contract for the provision of insurance services, and change the insurance company of his car.

The practical relationship between drivers and insurance clerks can be very complex and confusing. Road traffic accidents, registration, sale of equipment and many other events that are not regulated by laws that are far from perfect. There are many special cases that do not fit into the rules of OSAGO. Insurance agents interpret them differently.

The termination of insurance itself is quite simple; no obstacles may arise to carry out this process. Much more complexity occurs when it comes to money. How to return the money and how much?

There are three cases of guaranteed money back, when the policyholder does not need the policy, but the insurance is still valid:

• change of ownership of the car - the car was sold with proper re-registration of all documents;
• the car cannot be restored - either an accident occurred or as a result of careless storage, the car is definitely subject to disposal.
• death of the owner or policyholder.

Clause 33 of the MTPL Rules also provides for partial compensation of insurance premiums to car owners in the event of liquidation and bankruptcy. This point is purely theoretical. Such conditions lead to the fact that the office becomes insolvent.

In what cases can you get your money back for compulsory motor liability insurance?

A thorough investigation of the situation that forced the driver to terminate the contract is carried out by office employees. They issue a refund of the amount due.

Below are the most common points, decisions on which are made without unnecessary red tape:

1. In first place among the most popular cases is a simple everyday situation - selling a car to another owner. It is important here that a simple ordinary purchase and sale is carried out with all the necessary formalities. There is a formal and complete transfer of all property obligations on the property from the seller to the buyer. There are no powers of attorney, temporary permits or other legal tricks. Experts recommend that in such situations, submit an application to OSAGO immediately on the day of sale of the car. What caused such a rush? This is very important because the period from the sale to the filing of the application is not taken into account. The former owner of the car must submit an application on the day the car is sold. This will prevent you from losing extra money. After a standard car purchase, car companies easily issue a policy to the new car owner.
2. Motorists who don't want to work out the finer points with their agents are taking the easy route. Registration costs are included in the price of the car. Then the whole procedure is carried out automatically.
3. Terminating a deal ahead of schedule is also easy and simple after a serious accident, if the degree of damage to the car is more than 50%. The verdict of automotive experts should be that the car is not recoverable. There may be another conclusion from experts - that restoring a damaged vehicle will cost the car enthusiast no less than the price of a new car.
4. This category of cases also includes car theft. If more than one week has passed since the theft was recorded by the traffic police, and the search has not brought any results, you should apply for termination of the contract.
5. Death of the car owner or the person insuring the car. In practice, this is almost always the same citizen. It rarely happens that the policyholder represents the interests of the owner through a notarized power of attorney. If you have such a power of attorney, it does not matter with whom the tragedy occurred - with the insured of the car or its owner. The entire amount of cash payments is received by the person who officially has property rights to the inheritance.
6. Legal entities operating a car also have the right to terminate the motor vehicle insurance policy early. Therefore, the liquidation of an office, office, enterprise, or firm is, by law, equivalent to the death of the physical owner. Refunds for an insurance policy are carried out in accordance with all rules and regulations similar to those for individual car owners.
7. Cases of bankruptcy of insurance companies or revocation of licenses. There may be ambiguous situations and multiple individual cases. The solution depends on the financial situation in which the office finds itself.

A company on the verge of bankruptcy cannot compensate any amounts to its former counterparties. A company under sanctions is itself a debtor to the state and its clients. Therefore, she dodges as best she can: she offers to pay only part of the money, defer payments, and sometimes categorically refuses to pay.

When it comes to large payments, counterparties go to court, which takes their side, rendering a verdict in favor of the plaintiffs. The court's actions are aimed at compensating clients for the debt they owe.

How much money will be returned

Having decided how to terminate the MTPL agreement, counterparties strive to return as much money spent during registration as possible. The most important, decisive factor in determining the amount is the correct calculation using a special formula.

Balance payment amount:

B = (PS – 23%) x N / 12, where:

B – unrealized difference from the total insurance volume;

PS – the amount of insurance paid upon registration;

23% of the PS – funds appropriated by the office;

N – month remaining until the end of the insurance.

This formula rightly suggests that calculations be carried out on a monthly basis. If the deadline is just days away, no one wants to bother with the complicated process of getting their money back. If during the validity of the policy there have been no accidents, thefts, or accidents, and there is not long to wait for the next one, you should wait for the next registration.

Insurance companies are interested in car owners to maintain the full term of their car insurance. This will be taken into account during the next registration when the previous one ends. The client receives a special KBM bonus. This makes the price significantly lower, regardless of the office where it is issued.

Car owners who terminated their previous policy early do not receive such a bonus. It is automatically reset for them. The formula presented above clearly shows that an increase in PS and N entails an increase in B.

As for percentages, the figure of 23% does not have a solid legal basis. The Rosgosstrakh Department explains this volume by “mutual agreement” of the parties. From time to time, insurers post on the Internet a detailed scheme for applying the coefficients used in the formula for calculating refunds. An example of such a layout is given below.

20% is the amount intended to cover the costs of the insurance company.

To conduct business and receive clients, the company needs:

• equip an office;
• maintain equipment and work areas;
• hire workers;
• pay wages;
• draw up work books and working documentation;
• pay taxes for your work, buy permits.

The practical functioning of insurance agents is very difficult to control. Perhaps, indeed, 20% of the funds are allocated by management for the work of office employees.

It is possible that more than half of this money ends up in the account of the head of the company. What’s interesting is that in the worst case scenario, when not a single client has come to the office in a month, the company still receives its 20%. After all, the clerks of the enterprise are at their workplaces every day, do work, and receive their salaries.

Many car owners are outraged by such extortions from insurance company clerks. In their opinion, there are no grounds for collecting 20% ​​from them. However, the offices involved in this legal field are always popular, busy with their hectic activities and continue to flourish.

Writing an application and preparing documents for termination of the contract

Taking advantage of the incompetence of most car owners, many insurers appropriate their investments. When concluding a contract, the driver must require the inclusion of clauses, failure to comply with which will subsequently allow him to easily terminate the deal ahead of schedule. The counterparty can legally choose a more responsible and high-quality insurance company.

Established practice usually obliges the insurance company to provide the car owner with a form for writing a statement. The applicant himself is not prohibited from drawing up an application in his own hand on a simple sheet of paper. To prevent clerks from asking many related questions, it is necessary to state the essence of your appeal in as much detail as possible.

Be sure to include in the text of the application:

1. Information from the policyholder's passport.
2. Policy identification number.
3. A situation that led to the termination of the contract ahead of schedule.
4. payment in cash, bank details, plastic card number, bank account.
5. List of attached documents.
6. Confirmation by the insurer of receipt of the application on the specified date.

The list of documents that must be provided along with the application consists of mandatory ones and those that are required in a particular case.

Mandatory documents to be presented under any conditions:

• the original insurance policy along with a copy - the original must be submitted to the office, a copy must be kept for control;
• settlement receipt for the policy;
• if it is not possible to receive cash, the client provides a copy of the passbook or his bank card number;
• copy of the policyholder's passport.

If the owner of the car and the policyholder are different persons, the passports of both citizens are required. When only the owner’s representative is present, his notarized power of attorney is required.

Early termination of OSAGO

OSAGO is mandatory for all drivers. Using a car without a policy is prohibited. A fine is imposed for this. But in some situations, insurance already taken out becomes unnecessary, as a result of which you can get some of the money spent on it back.

When can you terminate an MTPL agreement early?

The rules of “automobile insurance”, according to which motor vehicle insurance is carried out, allow for the possibility of cancellation of the agreement before the established time.

Reasons for terminating your car insurance:

• death of the car owner;
• the car cannot be repaired after an accident;
• termination of the organization's activities;
• sale of a vehicle.

In the event of the unexpected death of the owner of the car, the contract can be terminated by persons who have a power of attorney for the car or by the heirs of the deceased. You will need to provide a receipt for payment, compulsory motor liability insurance and a photocopy of the death certificate of the owner of the car. After this, the auto insurance coverage terminates automatically.

When the car has been completely destroyed, that is, can no longer be restored, cooperation between the insurer and the company is also suspended. In addition, one of the reasons for breaking the agreement may be the state vehicle recycling program. In such options, you will need to provide a policy, a receipt for payment and a disposal certificate.

When a company's license is revoked, this can also be a reason for cancellation of cooperation. But getting the money back with this option will be almost impossible.

Cancellation of a car insurance policy due to the sale of a car is the most common reason for the premature termination of cooperation between the policyholder and the insurer. A valid contract becomes useless when the owner of a car changes, since the new owner cannot use it.

How to calculate the refund amount for early termination of compulsory motor liability insurance?

The law states that in case of premature termination of the agreement, in cases provided for by the rules of car insurance, the insurer returns to the insured part of the money in the amount of money intended for insurance payments and attributable to the remaining period of validity of the document or the unexpired period of seasonal use of the car.

That is, only part of the funds intended for payments is returned. This amount is commensurate with the remaining term of the agreement.

According to the requirements established by the Bank of the Russian Federation, only 77% of its cost is intended to ensure compensation for insurance. And 23% are designated for other purposes, and it will not be possible to return them in any case.

To calculate the remaining amount, first of all, you will need to determine the date of premature termination of the policy:

1. In the event of the owner's death, this is the day of his death.
2. If the company has been liquidated, the date of liquidation.
3. In case of a complete structural failure of the car - the day of the accident when the car was damaged.
4. If the company's license is revoked, the date the company received the application.
5. When selling a vehicle - the day the insurer receives the application.

Once the contract completion date has been determined, you can calculate how many days are left for the act to be valid and how much money can be withdrawn. For example, if the insurance will still work for ninety days, and it was concluded for a year, then you can return 24.6% (90:365≈24.6%) of the original cost. But since 23% is also not returned, in the end you can only get 18% (24.6% × 0.77≈18.9%).

When the agreement was not concluded for a whole year, the payment will be calculated a little differently. For example, when there are still one hundred days left, and the document was concluded for only four months (for example, from May to August), then the finances to be returned will be calculated as follows: 100 / (31 + 30 + 31 + 31) = 81.3 %. And taking into account the non-refundable 23%, the final payment will be 62.6%.

In what cases are money not returned in case of early termination of compulsory motor liability insurance?

It is possible to return (partially) the amount in case of premature termination of insurance in most precedents. But there are options when it will not be possible to withdraw funds.

Refunds will not be possible in the following situations:

1. When the owner of the vehicle provided false information about himself and the car. It is not uncommon for drivers to resort to such fraud in order to reduce the cost of insurance. If the company reveals the fact of unfair cooperation, it prematurely terminates the contract without the right to return funds.
2. When compulsory insurance is paid in installments and the next installment has not been made.
3. When the owner wants to cancel the insurance due to the fact that he does not plan to use the car for a long time. In this option, it is possible to terminate the agreement prematurely, but it is unlikely that you will be able to withdraw the money.
4. When the insurance company went bankrupt. Since the company is considered insolvent, it is not possible to collect the remaining amount.

Terms of refund in case of early termination of compulsory motor liability insurance

The owner of the car, the owner’s representative or his heir can receive the unused amount within 14 days after filing an application for premature termination of the insurance certificate.

But in practice, organizations rarely stick to deadlines. Therefore, you should know that when a company does not return the money on time, it is obliged to pay a penalty of 1% for each day of delay. But this payment cannot exceed the cost of the policy.

If, after two weeks after documenting the money, it has not been paid, you should contact the insurance company office. It is quite possible that finances were delayed at the accounting level.

Otherwise, you will need to take a photocopy of the agreement, a statement of termination and visit the Union of Russian Insurers. This institution regulates the work of insurance companies. You can try to get a refund through it.

Documents required for early termination of compulsory motor liability insurance

Before prematurely terminating your car license, you will need to collect some documents. Depending on the reason for termination of cooperation, the list of some papers may change.

But you will definitely need:

• check for regular payments;
• compulsory motor vehicle liability insurance (original);
• document on the sale of the car;
• passport.

Depending on the situation, you may need a disposal certificate, a copy of the death certificate, or a document confirming entry into the inheritance. Some companies may request a passport for a car with confirmation of the new owner (if the reason for the early termination of the “motor citizen” was the sale of the vehicle). When the insurance company does not provide for payments directly in cash, a copy of the savings book with current account details may be required.

If compulsory insurance is no longer necessary, terminating the agreement and refunding the funds is not always the most prudent decision. There are situations when it is better to leave insurance. For example, if the policy expires in a few weeks, it is better not to terminate the auto insurance policy. Although unused funds will not be returned, you can receive a full KBM, which will give you the opportunity to take advantage of the discount when applying for your next compulsory motor liability insurance. Although KBM is awarded for driving without accidents, bonuses are calculated when the year has completely expired. If the contract is terminated ahead of time, the coefficient will remain the same.