With 01.06.2016 in Russia enacted a new law, according to which within 5 days from the moment of signing the insurance contract has a “cooling period” when the policyholder is entitled to change his mind and cancel the contract, having returned all paid back to the insurer amount. However, this law is not in 100% of cases. Policyholders should be aware of this, as still in many banks, insurance is a mandatory condition for obtaining a loan or favorable interest rates on the loan. However, banks have a loophole and they will not return the insurance money.
The law applies only to the relationship between insurance companies and individuals. In fact, often citizens are connected to the group insurance contracts that it provides to the Bank. In this case, the insurer enters into a contract with the Bank, and the citizen issuing the loan, and collective buying insurance, acts only as the insured person. To terminate such a contract, taking advantage of the “cooling-off period” will not happen. A violation often is that the Bank does not warn his client about which category of insurance product it connects.
Although the client and can’t cancel the contract for collective insurance, by law the Bank is not entitled to impose on such insurance. But we should recognize that this category of insurance products before the Bank opens opportunities to them to offer clients, because to refuse such insurance borrowers will find it difficult.
