How to return insurance on a VTB 24 loan

When applying for a loan at VTB 24, a specialist offers insurance services to the borrower. This is an additional service and does not significantly affect the issuance of a loan. With some types of lending, insurance is indeed mandatory, for example, collateral must be protected from possible loss. But for a simple consumer loan, insurance is not at all required, although the borrowers still sign the agreement. And after that they ask themselves how to return insurance on a VTB 24 loan.

When applying for a loan, the borrower assumes the obligation to pay it. In the event of the borrower's death, the obligation is inherited by the borrower's legal successors. And in the event of disability as a result of injury or illness, the loan becomes difficult to pay. In general, one of the above life situations leads to non-payment of debt to the bank.

Life and health insurance of the borrower gives the bank a guarantee that the money will be returned to the lender in any case. Even if the borrower has an unforeseen life situation, the obligations are transferred to the insurance company. That is, for a bank, life and health insurance of a borrower is an additional protection of its funds, and for a borrower, these are extra costs.

Can I opt out of insurance?

VTB 24 loan insurance, as in any other bank, is an optional condition. But credit managers strongly recommend concluding additional agreements, explaining that you may be denied a loan. In fact, this is not the case, if you are a solvent and financially responsible client, the lender will issue a loan in any case. The only negative is that the loan rate will be several points higher, but this is not critical.

According to the Civil Code of the Russian Federation, life and health insurance of the borrower is an optional type of protection, the conclusion of an additional agreement is at the discretion of the borrower.

VTB 24 loan insurance is an additional service, you can refuse it. But do not be surprised if the bank refuses to issue a loan, because the lender is not obliged to explain the reasons for his decision. On the other hand, it is worth thinking several times before signing an additional agreement. Firstly, the cost of the insurance policy is quite high, ask the manager to print out two payment schedules for you, one with insurance and the other without it, then evaluate the difference. By the way, even an interest rate a few points higher will cost you less. Secondly, the insurance fee is charged at a time, at the expense of bank funds, they will be attached to the loan amount, or from your own wallet.

Only one conclusion can be drawn, for the borrower, insurance is a colossal expense, and in most cases unjustified. After all, the insurer will pay the debt instead of you only in two cases: with disability of groups 1 and 2 and with the onset of death, although it all depends on the chosen program. In any case, VTB insurance is quite expensive for the borrower, you can refuse credit insurance, let's consider how to do it right.

How to cancel insurance in VTB 24

After filling out an application for a loan and receiving a preliminary decision, you will have to come to the bank and sign a loan agreement and an additional insurance agreement. At that point, you can opt out of the insurance because, in fact, you haven't signed anything yet. Only the bank can change its mind, you may not be denied a loan, but the rate will be much higher. But given that consumer loans are quite affordable here, even such conditions will be quite acceptable for the borrower.

Refusal of insurance after receiving a VTB loan is also quite possible. Just before taking action, carefully read the agreement, ideally the documents should be studied before signing. If you have already received a loan and paid for insurance, then you need to cancel the service no later than 2 weeks later, and until you have made the first payment.

Please note that the insurance company will not refund you the entire amount paid, but only part of it minus the penalty.

In general, you should carefully read the contract with the insurer. If it states that cancellation of insurance is possible, but the insurance premium is not returned, then it is practically impossible to return the funds. Of course, you can file a lawsuit and prove there that the service was imposed on you by the bank manager, but this will not give you a 100% guarantee of a refund.

Services VTB 24 insurance

Refund in case of early termination of the contract

If you repaid the loan ahead of schedule, then, accordingly, you no longer need insurance, because the contract has already lost its force. The return of insurance on a VTB 24 loan is possible, but there is no guarantee that the insurance company will pay you part of the premium, again, carefully read the agreement.

You can challenge any contract in court. But first you need to contact the insurance company directly, it is advisable to send a letter and ask in writing to return part of the insurance premium for credit risk insurance. Be sure to indicate that you want to receive a response also in writing to your home address or e-mail.

If you were refused, then collect the documents and file a lawsuit in a court of general jurisdiction. When drawing up a statement of claim, it is worth referring to Article 958 of the Civil Code of the Russian Federation. In short, the insured person has the right to terminate the contract ahead of schedule, for the reason that the possibility of an insured event has disappeared.

Please note that the policyholder has the right not to return the funds from the insurance premium, if this is provided for by the contract.

In simple words, with the help of the court, you can only terminate the contract ahead of schedule, but not return your money. By the way, it makes no sense for you to contact the bank, because the lender is not a party to the agreement between the insurance company and the borrower. But you can recover damages from the creditor only if he forced you to enter into an agreement with the insurance company.

Sample application for insurance premium refund

If you decide to apply for a consumer loan in VTB 24 Bank, then you need to take into account some features. Firstly, you should not immediately refuse insurance, just like agreeing, first, clarify all the conditions for cooperation. Secondly, specify in which insurance company you can apply for a policy, because VTB 24 has several accredited insurance companies, among which you can choose the most advantageous offers for yourself.

In general, before taking a loan, consult with a loan officer, and be sure to check all the conditions of insurance. Also keep in mind that any bank loan client is a profit that the bank is unlikely to want to lose, and insurance premiums are the income of the insurance company. This suggests that the bank receives a certain percentage from the sale of the policy, but it makes no sense for it to lose a loan client if it fully meets all the requirements of the borrower.