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.
Calculation of the balance amount under the MTPL agreement
- Original MTPL insurance policy and payment receipt (if preserved). They will need to be returned to the company.
- A photocopy of the passport of the policyholder (his representative under a notarized power of attorney or heir).
- A photocopy of the purchase and sale agreement or certificate of invoice.
- Recycling certificate, if the car was scrapped.
- A photocopy of the death certificate (if the event took place). In this case, you will also need to provide a copy of the inheritance certificate, or a notarized certificate of imminent inheritance. And in this case, it is necessary to understand that, according to current legislation, inheritance does not occur immediately, but after 6 months from the date of death. That is, the heir will not be able to receive money from the insurance company earlier. The situation is even more complicated when there are several heirs. Then the payment will be divided proportionally among all heirs.
Some companies may also ask you to provide:
- A copy of the title with a note about the new owner (we will talk about this controversial issue below).
- A copy of the passbook with bank details (in the event that it is not customary for the insurance company to pay in cash).
It’s best to call the numbers listed in the MTPL policy in advance and find out exactly the list of required documents. Do not forget to make a copy of the surrendered policy, as well as the termination statement, so that in case of delay in money you have documents confirming the intention of the insurance company to pay the money.
S = (P * 0.77) * (N / 365), where:
- P – policy cost;
- N – number of unused days;
- S – amount to be returned.
For example, a car owner paid 15 thousand rubles for an annual MTPL policy. with an insurance period until September 30, 2017. On December 20, 2016, he contacted the company with an application to close the insurance contract on his own initiative. Reason: car sale. Thus, the premium to be reimbursed must compensate for 284 days of insurance. Accordingly, the amount of the balance to be paid will be RUB 8,986.84.
When calculating the amount of the balance under the MTPL agreement, it is necessary to understand that part of the insurance premium in the amount of 23% goes to pay for insurance services and contributions to the RSA. These are expenses that the insurer bears in any case. The policyholder can retain this amount in accordance with FSSP Letter No. 56 and methodological recommendations of RSA No. 10.
Persistent drivers returned these percentages through the courts - practice knows such cases. Since the Central Bank became the regulator of the insurance market, the “23% provision” has appeared in the MTPL Rules. Nevertheless, many car owners and experts consider this rule to be a violation of consumer rights, and the courts often side with them.
In order to carry out early termination of the MTPL agreement, it is necessary to prepare the following mandatory documents:
- an application with bank account details for transferring money (if the insurance company does not pay funds through the cash desk);
- original MTPL policy (returned to the insurance company);
- copies of the applicant’s passport and the original for verification;
- power of attorney, if a representative is applying on behalf of the owner/policyholder.
The application is written to the address of the insurance company (its branch). The “header” contains the full name of the car owner, place of registration, telephone number, policy number and date of purchase.
In the main part, the applicant informs the insurance company about the decision to terminate the contract early on his own initiative, indicating the grounds and date. Next comes a request to calculate and return the balance. If the insurance company does not allow the return of money in cash, you must include account details in the body of the application.
Situational documents are submitted in certified copies (on each sheet the inscription “Copy is correct”, date and signature):
- purchase and sale agreement (certificate invoice);
- transfer act (for legal entities);
- recycling act;
- death certificate (act of liquidation of a legal entity);
- a certificate from a notary confirming the imminent entry into the inheritance (or a certificate of entry).
You should always keep one copy of the application and the policy for yourself - they will be useful in court if the insurance company refuses to return the money.
How does termination occur?
You can terminate a compulsory motor liability insurance contract, including one executed online, only at the office of the insurance company. The law does not provide for an option in which you can cancel such insurance via the Internet. Therefore, in any case, you will have to contact the insurer’s branch - check in advance which office can do this.
To terminate compulsory motor liability insurance, contact the insurer's office with all the required documents and fill out an application. It must indicate the reason for termination of the contract and information confirming it. It is not necessary to print out an electronic policy, but it is advisable: most insurers require a paper version of the document in hand.
The company will consider the application for termination of compulsory motor liability insurance within a few days. If the grounds for refusal are confirmed, the company will cancel the contract and return a share of the insurance premium.
How to terminate an electronic MTPL policy?
The procedure for terminating an electronic MTPL contract is carried out in two stages: collecting the necessary package of documents and personally submitting them to the office of the insurance organization with a one-time writing of an application for termination.
After the above actions for termination by the direct policyholder are completed, the insurance company draws up an additional agreement on the termination of the electronic MTPL agreement with the loss of the policy's legal force and the return of the portion of the insurance premium due to the insurer.
List of documents
To terminate the electronic MTPL agreement, the client must prepare the following documentation:
- General (for all cases of termination): application for termination of the contract and termination of the MTPL policy;
- electronic MTPL policy or its version on a form;
- a copy of the passport of the policyholder or his legal representative under a general power of attorney;
- a copy of the death certificate of an individual - owner or policyholder;
Refund of funds upon termination of compulsory motor liability insurance via the Internet
Refunds upon termination of compulsory motor liability insurance via the Internet are carried out in the same manner as upon termination of legal relations on the basis of a written agreement. That is, for the electronic form of the policy, the legislator has not developed a special procedure for compensation upon termination of the document.
Part of the insurance premium is compensated within the limits of the amount of insurance compensation and taking into account the unexpired validity period of the MTPL agreement. This period is counted from the next day after the date of early termination of the contract.
If the insurer, within fourteen calendar days after the date of receipt of information about the occurrence of grounds for early termination of the OSAGO contract and deprivation of the policy of legal force, does not fulfill its monetary obligation to return part of the premium, it will be subject to civil liability in the form of a penalty in the amount of one percent of insurance premium for each day of delay in payment.
In addition, it is worth noting that it is impossible to return funds in the event of termination of legal relations due to the liquidation of the insurance company. In other situations, the insurer is obliged to reimburse the amount specified by law by transferring it to the same bank card from which the insurance premium was initially paid.
Refund for electronic insurance
If you refuse compulsory motor liability insurance, you have the right to return part of the paid contributions. The balance is calculated for the entire time during which the policy was issued. From this amount, the insurer additionally withholds a commission of 23%. This amount includes the insurance company's fee (20%) and deduction to the RSA (3%). The transfer of money will take 1-4 days after termination of the contract.
Depending on the reason for refusing OSAGO, the money will be transferred:
- To the car owner
- To the heir of the deceased policyholder
- To the policyholder, if he is the owner of the car
- To the policyholder, if he acts under a power of attorney from the owner of the car
If the policyholder has several heirs, the payment is divided into parts in accordance with the shares in the inheritance.
If payment is not received within the specified period, then contact the company office as soon as possible to find out the reason. As a last resort, you can contact the RSA or demand a trial. Prepare copies of the policy and application in advance - they will serve as evidence of the insurer’s obligations to you.
Who gets money when MTPL insurance is terminated?
According to the rules of OSAGO (clause 34), part of the unused premium is returned:
- the owner of the car;
- to the policyholder, if he is also the owner of the vehicle;
- the policyholder, if he has a notarized power of attorney from the owner confirming his right to receive money from organizations;
- heirs of the deceased policyholder.
We suggest you read: OSAGO in installments - buy OSAGO insurance with payment in installments in Moscow
If a car owner sells a vehicle under a “general power of attorney”, legally remaining its owner, it is not at all necessary to be indignant at the fact that they do not want to terminate the contract, it is enough to simply add a new “owner” into the insurance policy, taking from him a certain compensation for inclusion in the insurance.
In the event that immediate payment in cash from the cash desk is not provided, the company is obliged to transfer them to the policyholder’s bank account within 14 calendar days from the date of writing the application for early termination of the contract. As a rule, the transferred money arrives on the card or book even earlier.
But if after two weeks the money has not been transferred, it means something went wrong. Do not delay asking questions to the insurance company: contact the office, perhaps the employees themselves will find out at what stage the trace of the payment was lost, try to find out in the accounting department of the insurance company the number of the payment order to the bank.
If this does not help or you are faced with complete indifference to your problem, go to the management of the local branch of the company and threaten legal proceedings. When such activity does not lead to anything, most likely they are not going to pay you, and it’s time to go to the RSA, FSSN and the court. This is where previously made copies of the policy and application come in handy. Although, it is fair to say that in large insurance companies the termination process is quite streamlined and does not cause any particular complaints from clients.
Policy expiration date
The policy ceases to be valid the very next day from the date of application. If you contact the insurance company too late, the amount of compensation will be minimal. Therefore, if there is little time left until the end of the policy, it is more advisable to wait until the end of the contract and not renew it.
When selling a car, the date of termination of compulsory motor liability insurance will be the date of filing the application. In the event of the death of the policyholder or the disposal of the car, the date of termination will be considered the date of occurrence of this event.
Can they refuse to terminate or pay money?
The insurance company can refuse payment only in certain cases:
- Providing false information when applying for compulsory motor liability insurance
- The insurance was issued in installments, but the next required payment was not received in the company's bank account
- If the reason is the inability and unwillingness to use the car for a long time
- Insurance company bankruptcy
- The insurance taken out was temporary - for delivery of the vehicle to the place of registration
Questions and answers
Is it possible to terminate a compulsory motor liability insurance contract at your own request?
The law allows for the termination of a compulsory motor liability insurance contract for other reasons not included in the official list. However, insurance companies rarely allow you to refuse such insurance at your own request. Attempts to appeal such refusals in court, as a rule, end not in favor of the policyholder.
Is it possible to return money for compulsory motor liability insurance if insured events have previously occurred under it?
Yes, the presence of insurance cases under compulsory motor liability insurance and their number do not in any way affect the return of money if you cancel this insurance. The insurance company is obliged to reimburse the premiums you have paid depending on the period that has passed since the date of registration of the policy.
The insurance company reduced the payment amount without explanation, what should I do?
The procedure for reimbursement of payments under compulsory motor liability insurance and the amount of reimbursed amounts are regulated by law. If the insurer underestimates the amount of this amount, appeal its actions to a higher organization or go to court.
Compensation under MTPL, payments, PPV - frequently asked questions on the topic “MTPL”
The insurer has the right to file a recourse claim against the person who caused the harm in the amount of the insurance payment made by the insurer if: a) due to the intent of the said person, harm was caused to the life or health of the victim; b) the harm was caused by the specified person while driving a vehicle while intoxicated (alcohol, drugs or other); c) the said person did not have the right to drive the vehicle during the use of which he was harmed; d) the said person fled the scene of the traffic accident; e) the specified person is not included in the compulsory insurance contract as a person allowed to drive a vehicle (when concluding a compulsory insurance contract with the condition that the vehicle is used only by the drivers specified in the compulsory insurance contract); f) the insured event occurred when the specified person used a vehicle during a period not provided for by the compulsory insurance agreement (when concluding a compulsory insurance agreement with the condition of using the vehicle during the period provided for by the compulsory insurance agreement); g) the specified person, in the case of processing documents about a road traffic accident without the participation of authorized police officers, did not send to the insurer that insured his civil liability a copy of the notification form about a road traffic accident completed together with the victim within five working days from the date of the road traffic accident transport accident; h) before the expiration of 15 calendar days, with the exception of non-working holidays, from the date of the road traffic accident, the specified person, in the case of drawing up documents about the road traffic accident without the participation of authorized police officers, began to repair or dispose of the vehicle in which he was using damage was caused and (or) did not present this vehicle at the insurer’s request for inspection and (or) independent technical expertise, independent expertise (assessment); i) at the time of the occurrence of the insured event, the validity period of the diagnostic card containing information on the compliance of the vehicle with the mandatory safety requirements of vehicles, passenger taxis, buses or trucks designed and equipped for the transport of people with a number of seats of more than eight has expired (except driver's seat), a specialized vehicle designed and equipped for the transport of dangerous goods.
We also draw attention to the fact that the insurer has the right to make a recourse claim in the amount of the insurance payment made to the technical inspection operator who issued a diagnostic card containing information about the vehicle’s compliance with mandatory vehicle safety requirements, if the insured event occurred due to a malfunction of the vehicle and such a malfunction was identified or could have been identified during the technical inspection by this operator, but information about it was not included in the diagnostic card. The insurer also has the right to demand compensation for expenses incurred during the consideration of the insured event.
Sources
- Official website of Renaissance Insurance
- RSA official website
Recommended for you
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- Do you need a compulsory motor liability insurance policy to register a car?
- How to change rights in the MTPL policy
Vitalina Slepukhova One of the leading journalists of the project. In the credit sector since 2008. Has a higher education with a degree in Banking. Published in the online edition of the Kommersant newspaper. Extensive experience in the financial sector helps to navigate the microfinance and banking services market and see the most important events.
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