In what cases the policyholder can terminate the OSAGO contract and receive a refund of part of its value.
Drivers often have a question whether it is possible to terminate the OSAGO contract early in some way and return the money. Let’s consider in what cases it is possible, how to do it and what part of the policy cost can be returned.
The usual contract of «car insurance» is concluded for a period of 1 year. But in some cases, OSAGO rules allow early termination of such an agreement with the return of part of the cost of the purchased policy.
To terminate the CMTPL agreement, you need to contact the appropriate insurance company. In general, the following documents will be required: the passport of the policyholder, the CTP policy and the receipt of payment. Additional documents may be required depending on the reason for termination.
If the OSAGO policy was purchased via the Internet, then in order to terminate it, you will also need to contact the office. In this case, just in case, it is worth taking printouts of the policy and receipt with you.
The sale of an insured car is the most common reason for early termination of an OSAGO agreement. Having sold his car, the former owner can expect to receive a refund of part of the cost of the insurance policy.
In this case, you will need to provide a contract for the purchase and sale of the car.
You can also terminate the contract if the car has been stolen (stolen). You will need a certificate of hijacking from the police.
If the machine cannot be restored after an accident or has been scrapped, then this is also the basis for terminating the insurance contract. An appropriate act will be needed here.
In the event of the death of the policyholder of the car, the heirs may receive a portion of the policy value. You will need a death certificate and a certificate of imminent inheritance, which can be obtained from a notary.
If a legal entity that owns a car ceases to exist, this is the basis for early termination of the OSAGO contract. A record sheet is suitable as a supporting document.
If the insurance company itself ceases to operate or loses its license, then additional documents for termination are not required to be provided. In practice, however, obtaining a refund in such circumstances is generally difficult. Litigation will be required.
In some cases, the refund of the cost of the policy or part of it upon termination of the «car insurance» contract is not provided. These situations include the following:
It should be borne in mind that in case of early termination of the CMTPL agreement, the insurance rules provide for the return of not the entire residual value of the policy, but only 77% of it.
The formula looks like this: the cost of the OSAGO policy * 0.77 * number of «unused» days of insurance / total number of days of insurance.
On January 10, 2021, the car was insured without specifying the period of use, that is, «for the whole year.» The cost of the OSAGO policy was 12,000 rubles. On June 10, 2021, the car was sold, and the policyholder applied to the insurance company regarding the early termination of the insurance contract.
In this case, the “unused” period was 204 days.
The calculation is done as follows:
12 000 * 0,77 * 204 / 365 = 5 164,27.
Consequently, the policyholder will receive 5,164 rubles 27 kopecks.
The date of the last «used» day of insurance is determined as follows:
After submitting the application, the insurance company has 14 calendar days to make a refund.
In practice, insurers often violate this deadline. In this case, the policyholder may demand a penalty in the amount of 1% of the refund amount for each day of delay, but not more than the cost of the purchased policy.
Early termination of the CMTPL agreement with the receipt of the return of part of the funds is indeed possible. However, it must be borne in mind that the CMTPL rules regulate in which specific cases this is allowed. If the owner of the car decides to terminate the contract in order to conclude it with another company, or because he is not going to use the car for a long time, then this will not become the basis for a refund. And with the most common reason for the termination of the «car insurance» contract — the sale of an insured car — a part of the amount is usually returned.
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