How to terminate the MTPL agreement with Soglasie and return the money

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.

How is the contract terminated?

Procedures for canceling a transaction under compulsory motor liability insurance vary depending on the circumstances.

When selling a car

A transport unit can be transferred under a purchase or sale transaction, exchange or gift to another person; here the MTPL policy does not protect the new owner, and the former owner can apply to terminate his protection.

The policyholder can cancel the MTPL agreement in connection with this case only after the purchase and sale transaction itself has been completed. Then the required documents are immediately collected:

1. passport or other identity document;
2. original agreement with the company;
3. receipt for payment of the cost of the policy;
4. transport transfer agreement;
5. in some cases, a vehicle passport with information about the new owner included;
6. sometimes - the current account number for transferring money if the company does not return the money in cash.

Attention! It is best to clarify the necessary documents before going to the insurance company by calling the employees or information on the organization’s website.

Then the citizen’s application will be immediately accepted, and this date will be the starting point for calculating the financial resources to be returned to the former owner.

Early at the initiative of the policyholder

In life, situations arise when a car owner decides not to drive a car yet or leaves for a long time, and the vehicle remains unclaimed, or the insurance company performs its duties improperly.

Then the client decides to close the MTPL policy.

Insurance companies do not aim to lose their clients, so it is very difficult to terminate a contract for reasons not included in the main list of its termination, and at the same time receive money for unused months.

In this case, the MTPL rules provide for the insurer's right not to return money for the unused period , therefore, if possible, it is more profitable for the policyholder to leave the current MTPL policy and at the end of the insured period receive a good characteristic, which makes it possible to obtain the next policy at a lower price.

Cancellation of additional insurance

In practice, there are cases when a citizen inattentively reads the MTPL contract, and it may indicate consent to additional insurance, for example, for the risk of harm to life, which increases the price of insurance by at least a thousand rubles.

Or a company employee persistently imposes a comprehensive insurance contract, and the client succumbs to influence.

If, nevertheless, it was drawn up, then it can be abandoned even after the conclusion of an agreement on compulsory motor liability insurance. In this case, the entire contract is canceled and a new one is drawn up, which does not include additional insurance.

Important! Additional insurance is not mandatory and is issued only with the consent of the policyholder.

To do this, it is necessary to draw up a competent application for refusal of such a compulsory motor liability insurance policy. It must state:

• to whom and from whom the application is drawn up;
• the essence of the transaction in which the policy buyer was not informed about additional services or they were presented as mandatory;
• on laws that protect citizens from purchasing goods and services that they do not need at the moment (Law “On the Protection of Consumer Rights”, paragraph 2 of Article 16);
• about the desire to terminate the agreement and return the amount paid for the policy;
• list of attached documents;
• date of preparation of this application.

A signature is placed and this written request, together with the attached papers, is given to an employee of the company, who cancels the agreement after reading them, as is customary, on the same working day.

If the company refuses to cancel the transaction, you should report this to its central office. If this does not help, then notify the Russian Insurance Association or file a lawsuit.

Read more about what to do if additional insurance is imposed on you here.

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.

Policy closure rules

The main document that regulates the process of closing a policy is Bank of Russia Regulation No. 434-P dated September 19, 2014.

In order to cancel the contract, you need to contact the insurer’s office with a package of required documents.

Only the owner of the vehicle , the policyholder who owns the car, or the policyholder who has a power of attorney to accept funds from the owner of the vehicle, as well as their heirs, can cancel the MTPL policy. We talked in more detail about who the policyholder and the owner are here.

Important! The insurance company itself has the right to terminate the MTPL contract if it discovers that the client provided false information about himself or the vehicle when applying for a policy. Especially if hidden information increases insurance risks.

The list of documents required to cancel the MTPL agreement depends on the reason for it. So, upon the death of the owner of the vehicle, the heir must bring the original policy to the insurance company, a receipt for payment of its cost, a death certificate of the insured and a document confirming entry into the inheritance. The agreement will terminate immediately.

If the vehicle is completely destroyed as a result of an accident, force majeure, or due to participation in the state car recycling program, the insurer will require the policy itself, a receipt for its payment and a vehicle disposal certificate.

When an insurance company loses its license or its license expires, it is very difficult for motorists to get their money back.

If all the necessary papers are provided, the policyholder writes a statement indicating:

• name of the insurance company;
• full name of the policyholder;
• MTPL policy details;
• reason for canceling the contract;
• option to accept the due money from the insurer;
• list of attached papers.

The day the application is accepted is also the day the insurance contract is terminated. The day following it begins the non-insurance period, which lasts until the end of the policy period.

After canceling the contract, the company must provide the citizen with Information on OSAGO , which provides information about the owner and his vehicle, data on insured events that have occurred, insurance payments made and directions issued for repairs. This certificate is issued free of charge within five days after application. This is followed by the transfer of funds for non-insurance months in due time.

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 2021, 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.

Required documents

To terminate the MTPL agreement, you will need:

• Original policy
• Insurance contract
• Insurance payment receipt
• Passport of the policyholder, his representative or heir
• Power of attorney certified by a notary (for a representative)
• Bank account details (to receive payment by bank transfer)

Depending on the reason for refusal of MTPL, you will need additional documents:

• In the event of the death of the owner of the vehicle - a death certificate and a certificate or certificate of inheritance (for each heir)
• In case of complete loss of the car - a disposal certificate
• In case of sale - purchase and sale agreement, certificate of invoice, title with a note about the new owner

If necessary, the insurance company may request other documents and information. You can find out the full list from your insurer's support service.

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.

How to terminate a contract

To terminate the MTPL contract with Soglasie Insurance Company, the car owner and the insurer are guided by Art. 10. clause 4 of the federal law dated 04.25.2002 No. 40-FZ “On OSAGO...” The legal norm states that, based on one of the rules of clause 1.14 No. 431-P, the insurance company is obliged to return to the applicant “part of the insurance premium in the amount of a share insurance premium" for the unexpired period of validity of compulsory motor liability insurance. You can apply in person or by mail (SK Soglasie LLC: 129110, Moscow, Gilyarovskogo St., 42 “For appeal”). The application is available for download using the link below, or on the company’s website soglasie.ru. To do this, you need to go to the “Information for recipients of financial services” section and find the line at the bottom “Application for termination of all other insurance contracts.”

The following documents must be attached to the form:

1. Insurance policy.
2. Receipt for payment of the insurance premium (form A7, etc.).
3. A copy of the car purchase and sale agreement.
4. Expert opinion on total damage to the vehicle.
5. A copy of the decision on deprivation of a driver's license.

You can find out the address of the nearest office of the Soglasie company in the “Branch Addresses” section.

Specialists of IC Soglasie kindly ask you to fill out the application in legible handwriting. It is best to use block letters - this way an employee of the organization will process the client’s request faster.

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.

When can I terminate my car license agreement?

Insurance companies will agree to terminate the MTPL contract at any time convenient for you in accordance with the requirements of clause 33.1 of the Motor Insurance Rules:

• if the vehicle has changed ownership;
• if the insurer’s license has been revoked;
• if there is any other case stipulated by the legislation of the Russian Federation.

In other cases, termination of the contract and payment of unspent funds will be made upon the occurrence of an event specified by law and within the established time frame. The law does not consider the “personal desire” of the car owner.

On what basis do they withhold 23%?

The law on compulsory MTPL insurance does not say anything about withholding 23% of the refund amount upon termination of the contract. But insurers are guided by the structure of the MTPL tariff approved by the Government of the Russian Federation:

• 77% - the net cost of insurance, from which the unused balance is returned in case of early termination of the contract;
• 20% — the company’s costs for servicing the contract and its own activities;
• 3% - contribution of the insurance company to the reserve of compensation payments of the RSA.

Since 23% are inevitable expenses of the insurance company that are not “directly” related to the insured amount, it is not returned to the policy owner. In addition, according to Art. 958 of the Civil Code of the Russian Federation, the insurance company has the right to a portion of the insurance premium within the validity period of the contract. Although, if you go to court, the insurer may be required to return this 23% to the policyholder.

Does the insurance company require a copy of the PS?

Employees of some insurance companies require from the policyholder a copy of the title with a note about the new owner of the vehicle. The insurer needs a copy of the car’s passport to ensure that it avoids fraud: a handwritten forgery of a purchase/sale agreement in order to receive insurance money without selling the car. This requirement is illegal, since you only need to provide a car purchase/sale agreement or a certificate of invoice for the transaction.

Will money be returned under compulsory motor liability insurance if the insurance company has already made payments?

Sometimes insurers underestimate the amount of the refund under a prematurely terminated auto insurance contract, or try to avoid payment altogether, citing the fact that, for example, you have already received insurance compensation under this contract. However, compensation for an insured event and the return of unused money under compulsory motor liability insurance have nothing to do with each other. According to the auto insurance contract, the unprofitability of the policy is not assessed. Reducing the refund amount is possible only by the mentioned 23% and no more.

Thus, if the car owner stopped using the vehicle before the expiration of the MTPL policy, he has the right to contact the insurer and, within the framework of the law, demand termination of the contract and the return of unused funds under it.

In order for the return to proceed without problems and delays, you need to understand the MTPL Rules, meet the category of citizens who have the right to early termination of a car insurance contract at will, prepare the necessary documents and be able to insist on their rights. You can force the insurance company to comply with the requirements of the law through the RSA, FSSN and going to court.