Voluntary motor insurance is not cheap, especially full CASCO insurance. After all, the average cost of such a policy will be about 50,000 rubles. You can use the calculator to calculate the insurance premium individually for your car. And by terminating the CASCO contract early , the client of each insurance company hopes to receive part of the money paid for insurance. How does this happen?
Early termination of the CASCO agreement
Early termination of a CASCO policy is a process of changing the validity period of the contract, upon reaching which it ends.
For example, a CASCO policy was issued on October 12, 2015. It will be valid until October 11, 2016, that is, exactly 1 year. If the policyholder has a need to terminate it on March 14, 2016, then this will be considered early termination. But after March 14, 2016, the vehicle will no longer have full insurance coverage.
Where to apply and how to fill it out
An application from the policyholder to terminate the insurance contract is drawn up in free form, but you can follow the recommended format approved by the insurance company.
Such a statement must contain information such as:
- Heading.
- Name of the insurance company , its details and address.
- In whose name the application is being submitted (the head of the insurance company).
- Who submits the application : Full name of the policyholder, passport and contact information.
- Request for early termination of the contract and refund of funds for the unused period of the contract.
- Refund details.
- List of documents that are attached to the application.
- Date of application.
- Signature and decryption.
An application for termination of the contract is submitted to the territorial division or office of the insurance company. A sample application for termination of an insurance contract can be downloaded here.
It is drawn up in two copies, one of which remains with the applicant with a mark of receipt and the date of its acceptance. It is also possible to submit the application through an authorized representative or send it by mail in a valuable letter with a list of the attachments.
Situations when a CASCO policy is terminated early
Termination of the CASCO agreement cannot happen just like that. There needs to be a specific reason for this. Thus, based on the insurance rules, each insurance organization establishes a certain list of cases in the event of which the CASCO policy can be terminated early .
You can terminate your CASCO policy early if:
- Refusal of the policyholder from the contract.
- In case the insurer fully fulfills its obligations to the client.
But at the discretion of the insurance company, situations such as refusal to pay the next insurance premium (when paying for insurance in installments) or complete loss of the vehicle as a result of events that are not an insured event may be added to this list.
Is it possible to terminate an agreement with an insurance company early on your own initiative?
Car insurance under CASCO is an optional type of insurance and is determined by the Civil Code (Chapter 48 of the Civil Code of the Russian Federation), instructions of the Central Bank of the Russian Federation (market regulator), the contract and the Insurance Rules of the organization where the policy was purchased.
Article 958 of the Civil Code gives the car owner grounds to unilaterally refuse insurance if the possibility of such an event has disappeared: the car is destroyed as a result of a non-insured event.
This category of events includes car disposal, destruction or theft of a vehicle that is not covered by insurance. In such a situation, the initiator of termination has the right to receive the remainder of the insurance premium; the amount of the refund is proportional to the ratio of the entire insurance period to the time when the insurance coverage was in force.
The code has another good reason for termination - articles 450, 451 .
They stipulate the termination of the agreement in the event of non-compliance with its terms by either party, or a significant change in the conditions, knowing about which such an agreement would not have been concluded. All other options for terminating the insurance contract must be described in the insurer’s documents. Favorite phrase of the claims department: “Read the rules!”
Documents for early termination of CASCO
If you intend to carry out early termination of CASCO, you must provide the documents necessary for the procedure to the insurance company along with a written application. It must contain information such as the full name of the owner of the insurance, the insurance policy number and the date of termination of the contract.
The application can be obtained from the insurer or written by hand. Along with it you must provide the following:
- Original CASCO policy.
- Payment receipt.
IMPORTANT!!! It is not necessary to submit original documents to the insurance company. They can simply be presented as proof that they exist and that the policyholder has paid for everything. It will be enough to attach only copies.
After the application is accepted by an authorized employee of the insurance company, your policy will be checked against the database for the presence of arrears in payment of the insurance premium. If none is found, the documents are submitted to calculate the amount to be returned to the policyholder.
But there are some nuances here. Of course, the insurer cannot fail to return part of the premium for unused months of the CASCO agreement, but the methodology for calculating this amount may differ from company to company.
Order
How to refuse CASCO insurance? In order to terminate a CASCO agreement with an insurance company, you must perform a series of sequential actions that will lead you to the desired result. The list of actions that must be followed is as follows:
- Once you have come to the conclusion that you really want to terminate the contract, you need to carefully read the text of the contract. Perhaps you will find in it the fact that it is impossible to carry out such an action due to the prescribed conditions.
- If there is no prohibition on early termination of the contract, you can draw up a notice of termination. A sample of such a document can be found on the website of your insurance company or on the Internet. You can draw up such a document yourself, without relying on any sample, since a document established by the state simply does not exist.
- Now you need to collect the proper package of documents with which you will come to the office.
- You need to appear primarily at the office of the insurance company where the CASCO registration took place.
- Give the company employee the documents, as well as an application for termination of the contract.
- After a thorough check, the employee will give the go-ahead for such an action, or, conversely, refuse.
If you receive a positive result, you can sign all the necessary papers and then proceed to the cashier to receive your payment. Funds will be given to you in cash or transferred to your card. The method is chosen individually. In some situations, funds under the CASCO policy may arrive to you with a delay. This occurs due to the fact that the insurance company does not have the necessary amount of funds to issue.
Pre-trial settlement
The instructions listed above apply to pre-trial settlement. Such a development of events is possible if the parties have no claims against each other. As a rule, the parties communicate about what amount will be returned. The insurance company argues its position by saying that some period has passed since the insurance policy was issued and the car has undergone wear and tear.
If the company’s client agrees to the specified amount, this means that the parties will do without litigation and filing claims against each other. This procedure is called mediation and is very popular among the parties.
Important! It is necessary to take into account the fact that no one wants to bring the matter to trial, because this procedure is very expensive and long. There is a risk of not receiving a payment at all.
Making a statement
An application for termination of CASCO is a document whose purpose is to convey to the organization information that you no longer need its services. To date, there is no legally established form for this document. However, many insurance companies have special requirements for the preparation of paperwork. If you want your document to be accepted the first time, be sure to first ask the insurance company employees to provide you with a sample.
Many companies provide this document on the Internet on their official page. If you haven’t found the form, you can contact the insurance company’s office to get a ready-made printed sample. Some companies offer to create such a document on the spot, which means that you do not have to worry about preparing such a document at home.
If the insurance company accepts the contract in any form, then you are incredibly lucky. However, you still need to know what information should be contained in this document. Mandatory information in this document includes:
- First of all, you need to enter the passport details of the citizen who is applying to the insurance company.
- Next, you need to provide information about the vehicle for which the CASCO policy was issued.
- Next, you need to indicate the deadlines, as well as the reason that became the basis for the desire to terminate the contract.
There are other requirements for such a document that relate to registration. The application must be submitted on a white A4 sheet. It is advisable that this document be printed on a computer. If it is not possible to print the document in this way, it must be written by hand in clear and neat handwriting in blue or black ink.
Required documents
The application is far from the only document that must be submitted to the insurance company. Before you come to the office, you need to put together a whole package that will allow you to easily terminate the relationship. List of required documentation:
- First of all, it is a citizen’s passport.
- You must provide a vehicle passport.
- An application is provided.
- The CASCO policy itself, issued by this insurance company.
- Other technical documentation for the car.
- If necessary, a driver's license is provided for each person included in the CASCO policy.
Other documents that are relevant to the current situation may also be presented. In order to be sure that the documents provided are complete, you must contact the insurance company in advance so that the agent can compile a detailed list for you personally.
Calculation of the refund amount
In order to get your money back, you need to make some calculations. For example, in order to understand how much money can be expected, a client of an insurance company needs to perform some manipulations. It is necessary to take the amount of the insurance policy as the first number.
Let's say 50,000 rubles. If the insurance policy was issued for a new car, then it should be taken into account that the annual wear and tear of such a car will be 15-20%. This means that you need to subtract 15% from 50. Then you need to calculate the period that has passed since the policy was issued. If this period exceeds six months, that is, half the term of the CASCO agreement, then it is necessary to minus another 20%.
The formula is as follows: policy amount – 15% – 20% = money back amount.
Thus, if you want to receive money by terminating the CASCO agreement, then most likely you will receive an amount lower than half the cost of the policy.
Let's look at an example:
- Let’s take the cost of a CASCO policy in the amount of 50,000 rubles.
- Exactly half of the insurance policy registration period has passed – six months. This means that the value must be divided by 2. It turns out 25.
- The depreciation of a car over six months is 15%. This is another minus 7500 rubles.
- Thus, a citizen can count on receiving funds in the amount of 17,500.
If the cost of a CASCO policy is 100,000 rubles, and almost a year has passed, then most likely, in connection with all the calculations made, you will receive a cost equal to 15,000 rubles.
Deadlines for receiving money back
The timing of the return depends entirely on the policy of your insurance company. If the contract states that the insurance company undertakes to make payment within 24 hours, this means that you can expect funds on your card or in cash on the same day on which you submitted the application.
On average, the insurance company reserves the right to transfer funds within three calendar months, but, as a rule, it does this earlier. If the period is approaching three months, there is reason to believe that the insurance company is checking the nuances of the documents you have drawn up, as well as the general possibility of terminating the contract at this stage.
Through the justice authorities
Termination of a contract in court is always associated with various difficulties. In order to go to court, you need to file a statement of claim. As a rule, this happens if a citizen is dissatisfied with the amount that the insurance company intends to return to him. Let us consider in more detail how to carry out such an appeal, and most importantly, what nuances may be encountered on the path of a person intending to protect his right to payments.
When and where to contact?
In order to restore their rights, citizens must apply to the district court. This is where they must submit the completed statement of claim. The district court allows you to consider the case in full, and if you are not satisfied with the decision, you can always appeal to a higher court, for example an appeal.
Writing a claim
The statement of claim in this organization is drawn up according to a clearly established template. An arbitrary approach to drawing up an act is no longer suitable here. It is better to draw up a statement of claim on a computer, but in its absence, black or blue paste, as well as a white sheet of paper, are perfect. Information that must be present in the application:
- The header of the application indicates the name of the court to which you are going to send the document.
- This is followed by information about the plaintiff and the defendant. The defendant is the insurance company.
- Information is provided on what served as the basis for going to court.
- The citizen refers to the rule of law, and also proposes his own ways to solve the problem; all this is stated on paper and sealed with a special seal.
- At the end of the application, a list of documents is attached, the date and signature of the person who is the plaintiff is attached.
Important! Documents must be submitted to the office, where they remain for consideration until a decision is made.
Collection of evidence
But the application is not submitted on its own. As a rule, it is accompanied by a whole package of documents.
These documents should be proof that you are right:
- first of all, this is a photocopy of the CASCO agreement;
- a document that will indicate the cost of return under CASCO. These calculations are made by the insurance company;
- the result of an independent examination, which indicates that this amount should be higher, and also provides reasons that prove your arguments;
- other documents that will testify in your favor. For example, an examination of a car, which will conclude that wear and tear was less than 20% per year, and so on.
Calculation of the refund amount
Typically, the amount due for refund to the policyholder is calculated as follows:
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Refund amount = (Premium – Insurance expenses)xn/N – Payments
Where,
Premium – the amount paid for the CASCO policy,
Expenses of the insurance company – funds spent by the insurance company to maintain the contract. Typically this value ranges from 30% to 50% of the insurance premium,
n – months remaining unused,
N – total term of the insurance contract,
Payments – money paid for a loss.
Example
Let’s imagine that on October 15, 2016, the policyholder decided to terminate the CASCO policy issued on February 15, 2015, for which there was one payment in the amount of 10,000. The insurance premium was 60,000 rubles.
(60000 – 30%)x 4/12 – 10000 = 3860 rubles
Thus, the client will receive 3860 rubles for the remaining 4 months.
The refund of the premium upon termination of CASCO will proceed as follows:
- Checking the correctness of filling out the application and the completeness of the package of documents.
- Calculation of the amount due for refund.
- Transfer of funds to the policyholder’s personal account, or withdrawal from the insurance company’s cash desk. This will need to be decided at the time of application.
How much can you get?
Calculation of the refund for canceled CASCO insurance is calculated using the formula:
refund amount = insurance price/365*remaining insurance period in days – RVD . RVD is the cost of running a business.
This parameter must be specified in the insurance contract. Typically its value is from 10 to 40%.
In general, CASCO termination is a standard procedure that should go smoothly in the vast majority of cases. Exceptions may include refunds from third-tier insurance companies, but even in this case, the policyholder has excellent tools to combat such a violation of his rights.
How is the payout calculated?
If the reason for termination of the policy was not the loss of the car, then a partial amount is returned to the policyholder. It is calculated in proportion to unused days of insurance.
CASCO calculator
You can calculate the refundable amount yourself. To do this, you need to divide the cost of the policy minus 23% by the number of days until the insurance expires. The fee paid by the company to the Russian Union of Auto Insurers, as well as a commission for conducting business, is deducted from the cost of the policy.
How can you reduce losses?
Typically, car owners agree on the amount of payment. However, charging a fee for handling a case from the policyholder is illegal. This amount can be challenged in court.
Is it possible to refuse and take the money?
As with other insurance cases, the car owner has the right to refuse the CASCO agreement. There are a number of reasons for its termination:
- loss of car;
- death of the policyholder.
By providing supporting documents to the Investigative Committee, a citizen can count on a positive outcome of the case.
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Termination of the insurance contract does not mean a 100% refund of the paid insurance premium. Cases in which the consumer receives money back are specified in the insurance conditions.A
What is CASCO
Translated from Spanish, “casco” means “helmet”. The meaning of the word fully corresponds to the objectives of this insurance. CASCO is comprehensive car insurance, except for liability.
This policy can fully cover the risks that threaten the policyholder and the insured property. Liability to third parties is not taken into account in this case, even if the insured is the culprit of the accident. It is also important to note that this is a voluntary type of vehicle insurance.
Such insurance is more expensive (for example, OSAGO), and the contract is not regulated by the state. There are other characteristic differences.
Methods for returning funds
There are two possible ways for the insurance company to return funds to the client upon termination of the contract:
- Use of funds to pay off part of the payment for a new insurance policy that will be issued to the introduced insurance company . The method is most optimal when the client is focused on purchasing a new insurance policy with different conditions. Here, the remaining funds are usually not charged a commission for the production costs of representatives of the insurance company and a commission for bank transfers, which are often present in the next method of returning funds spent on car insurance.
- Transfer of funds remaining after all calculations have been made to the client’s bank account . The method is beneficial if the client is not inclined to continue the insurance relationship with the provided insurance company.
Legislation
Officially, the legislation of the Russian Federation does not provide for a special law that would regulate the functioning of voluntary insurance. Such regulatory measures are currently provided only for compulsory insurance. However, the policyholder may be guided by the provisions of the Civil Code of the Russian Federation in the event of conflict situations.
For example, it is worth considering Article 985 of the Civil Code of the Russian Federation, which contains information on the grounds for canceling an insurance transaction, and therefore a CASCO policy. All situations that could lead to cancellation of the insurance contract must be agreed upon between the parties to the transaction.
The grounds for terminating the relationship between the policyholder and the insurer may be:
- the vehicle was completely destroyed or worn out, which led to the need for its disposal;
- the owner of the vehicle died;
- the car was sold on the basis of a purchase and sale agreement;
- the insurance company was deprived of its license to carry out insurance activities.
The most preferable option remains the cancellation of the contract by mutual agreement of the parties to the transaction. However, this scenario is quite rare. Also, the insurance company may, on its own initiative, offer the client to terminate the contract for objective reasons. This possibility is provided for by the legislation of the country.
