How much money will be returned upon termination of compulsory motor liability insurance?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

How much money will be charged?

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

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

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

Why is 77% of the amount charged?

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

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

If the insurance company refuses to terminate

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

Maxim Sedov, Insurance Disputes Agency:

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

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

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

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.

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.”

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

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

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

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What is it about?

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

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

Is it possible to return insurance and get money back?

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

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

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

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

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

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

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

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

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

Cases and reasons

Valid reasons for returning part of the invested funds are:

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

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

How much will they return?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Refund of compulsory motor liability insurance when selling a car - is it profitable?

Having an MTPL insurance policy is a mandatory requirement for all car owners.

Using a vehicle without insurance is prohibited - the driver will be fined for this.

However, in some cases, an already issued policy becomes unnecessary for the policyholder , as a result of which he can return the money spent on it back.

What kind of cases are these and what the refund procedure looks like - consideration of these issues will be of interest to all car owners.

Early termination of the MTPL agreement and refund of money for an unnecessary policy

The rules of compulsory motor liability insurance, according to which the car insurance procedure takes place, allow for the possibility of termination of the contract before the established time.

The client can do this at any time, without even explaining the reasons that prompted him to do so.

However, in this case, all the money he paid for insurance will not be returned and will remain with the insurance company.

To return part of the amount paid for the policy that was not used by the policyholder, you must provide the company with documents confirming the reasons for this.

The grounds for a return must be compelling - the most common ones are enshrined in law.

It will not be possible to return money for insurance in the following cases:

Termination of the contract occurs at the initiative of the insurer.
A legal basis for this may be the identification of the fact that the client provided employees of the insurance company with incomplete or unreliable information about himself , as a result of which the cost of the policy was underestimated.
This may include false information regarding your driving record, vehicle horsepower, and other factors that affect the cost of insurance.

The policyholder wants to terminate the contract due to a long trip during which he will not use the car.
Of course, you can submit a claim to the insurance company, but the answer is unlikely to be positive.

It is also impossible to return money in some cases of company liquidation - if it occurs due to bankruptcy.

In this situation, a legal entity is declared insolvent , so it may simply not have enough money to pay off all obligations.

You may be interested in how to calculate your bonus malus coefficient ((KBM)

Or read HERE about registration of an accident without representatives of the traffic police

In what cases can you return part of the money for compulsory motor liability insurance?

If there are valid reasons, the policyholder can easily return the money for the unused portion of the policy.

The most common reasons for a return are:

Change of vehicle owner . You can get your insurance money back if the car is sold under a sales contract. This possibility does not apply to situations in which it is transferred under a general power of attorney.

Loss or destruction of a car . This includes cases such as car theft or damage that cannot be repaired. If the vehicle is returned under the scrappage program or cannot be restored, the money for its insurance can be returned.

Death of the owner . In this case, the owner of the car, as well as during the sale, will change, so the previously concluded contract will be invalid.

Death of the policyholder . Since he is one of the main parties to the transaction, such an event leads to the invalidity of the contract - employees of the insurance company will be obliged to terminate it.

Liquidation of a legal entity (in cases where the insured car was its property). Just as in the previous case, one of the parties to the transaction disappears, so it becomes invalid.

Deprivation of an insurer's license . This situation is controversial and does not always lead to payment of part of the cost of insurance. If a company's license is revoked due to impending bankruptcy, it is better to hurry up and apply for a refund. If bankruptcy proceedings begin, they may not be returned.

When selling a car, it is not necessary to terminate the contract and receive part of the insurance premium back.

As an alternative, you can sell the vehicle along with insurance - include the policy in the price of the car.

In this case, the insurance company will only need to renew the contract for the new owner and, if necessary, pay extra money for the policy (if, for example, his driving experience is less than that of the previous owner).

The choice of refund method lies entirely with the policyholder.

Calculation of the amount to be returned

The amount that the policyholder will be able to get back depends on two factors: the amount of insurance and the number of months remaining until the end of its use.

The calculation of the amount is as follows:

B = (PS – 23%) * (n/12) , where:

B – amount to be returned,

PS – total cost of the policy,

n – the number of months remaining until the end of the insurance period.

As for the value of 23%, it consists of two elements:

3% of the policy cost is paid to RSA;

20% goes to pay the costs of running the business (documentation, employee salaries, etc.).

This part of the money is often taken from the policyholder, but not everyone agrees with this.

Many clients go to court and try to prove that charging 23% is illegal.

Most court decisions in this case are positive , since there are no clear instructions in the legislation regarding the mandatory nature of such deductions.

Who can receive money upon termination of compulsory motor liability insurance?

The recipient of the unused insurance value depends on what is the basis for termination of the contract.

The following persons can get their money back:

To the policyholder.

To the heir of the deceased policyholder.

The legal representative of the policyholder.

To the owner of the vehicle.

To the heir of the deceased owner.

The legal representative of the owner.

, a general power of attorney must be issued for them (on behalf of the owner or policyholder).

A prerequisite for such a power of attorney is the presence in it of an indication of the possibility of conducting transactions with funds.

Refund deadlines

In accordance with the rules of MTPL insurance, the money for the policy must be returned to the client no later than 14 days after he submits the application .

In some cases, money is given immediately after application - in cash at the cash desk.

In other companies, they can be transferred to a bank account within a specified time.

If a company violates deadlines and does not transfer money, even after repeated requests, the policyholder can sue it .

Among the necessary documents, it is worth preparing copies of the MTPL policy, payment receipts and an application for a refund.

Find out how to get a civil liability insurance policy

Read THIS article about insuring children against accidents.

Where to download the European protocol form for an accident in 2015:

Required documents and procedure

To return the cost of the policy, the policyholder must come to the insurance company with a package of supporting documents.

They can be divided into two groups.

Universal

Provided in any case, regardless of the reasons for the return.

These include:

a copy of the insurance policy;

copies of pages of the policyholder's passport;

receipt for payment of the policy.

Special

They confirm the weight of the reason for terminating the contract.

It could be:

contract of sale;

general power of attorney;

certificate of inheritance;

death certificate of the owner or policyholder;

certificate of deregistration of the vehicle;

documents confirming the liquidation of a legal entity.

Both copies and originals of these documents are required.

With the help of a company employee, the policyholder can write a statement of termination of the contract (indicating the reason) and attach the necessary documents to it.

The money must be returned within the specified time.

Is it always worth terminating an MTPL agreement?

Terminating the insurance contract and receiving the remaining amount of money is not advisable in all cases.

For policyholders who will still be taking out new insurance and using the car in the future, it may be more profitable to wait until the end of the contract .

This is especially true in cases where the policy is about to expire.

The benefit is that, as an incentive for accident-free driving, the driver is awarded a BMC (bonus-malus coefficient), thanks to which he can receive a discount on the next policy.

The discount will be increased only if the contract lasts for a year - if terminated early, the KBM rate will not change in any way.

Therefore, in this case, it is worth calculating what is more profitable - taking part of the paid insurance in cash or getting a big discount on the next policy .

In conclusion, it is worth noting that:

All drivers have the right to early termination of the MTPL agreement, regardless of the grounds and reasons for this.

You can get back part of the paid insurance only in legally established cases: when the owner of the vehicle changes, after his death or as a result of the destruction of the car.

In case of early termination, the right to a reduction to the KBM policyholder is lost - its value remains the same.

4 comments

There is a problem with the introduction of the OSAGO or motor vehicle regulations. The car, does it have citizenship? The driver has citizenship, so he must take out insurance, as if taking an oath not to violate traffic rules. It is necessary to oblige all drivers to have a compulsory motor insurance policy, even if he does not have a car, but can use it at any time, for example, borrow it from a friend. I've encountered this abroad. But the insurance must indicate not the data of the car, but only the engine power that the driver can operate. As in water transport, where navigators are allowed to operate a vessel of a certain power. Is the idea clear? You just need to work it out. Now for drivers who have several cars, one insurance policy should be issued for the most powerful car. Why? Yes, because one driver cannot drive all the cars he has at the same time. They can answer that if you bought several cars, then you can buy insurance. But please, buying a car is one thing, but insurance is another matter. You may not have cool cars, but a small car is good for the city, a Niva is good for fishing. Many of us have driver's licenses, but do not have cars and are covered by insurance. And so there will be additional contributions to eliminate the consequences of accidents

When refunding money for insurance in these cases, including when selling a car, the actual remaining period of insurance is taken into account. So the relevance of terminating the contract is high only at the beginning of the term, losing meaning with each passing month.

It reaches the point of complete absurdity, the husband does not have a bank account, and the insurance company is not paid in cash and cannot transfer it to the account, for example, the wife, even at my application with the specified bank details of the wife, a general power of attorney is needed, for which you need to pay 2000 rubles, the balance OSAGO package 1700 rubles. Meaning?!

After the termination of the contract with the insurance company due to the sale of the car, the KBM was increased. They explained that early termination of the contract is equivalent to an accident when the participant is in the wrong. When concluding a new contract with JSC Nadezhda, the maximum coefficient was assigned to the new car.