Termination of the contract of OSAGO: documents, conditions, calculation of the remainder of the sum insured

To date, any vehicle owner knows what an insurance policy is. The most important thing in its design is to choose a reliable organization. Each driver may face a situation where early termination of the contract of compulsory motor third party liability is necessary. It is quite possible to do this, however, without knowledge of all the subtleties of the legislation, it can be quite problematic. Nevertheless, if you follow the specific instructions that will be given later, you will be able to avoid the pitfalls and without problems return your money.

General information on early termination of an insurance contract

Causes on which it may be necessary to terminate the contract of compulsory motor TPL insurance can be quite a lot, however, regardless of them, it is necessary to fully adhere to the current legislation. Only in this way you can achieve the desired result and do not give the insurer's lawyers an excuse to refuse your legal right.

After settling all legal formalities, the driver has the right to receive the previously paid amount for the policy, with the exception of 23 percent of the cost of insurance, which includes the deductions of the compulsory insurance company of the Union of Motor Insurers, as well as the associated costs for the conduct of the case.

What documents are required for termination

Termination of the contract of insurance MTPL is a standard procedure that requires the driver to have a certain package of documents. According to the current legislation, it is necessary to prepare:

• Receipts for payment of insurance services under the current policy;
• Original contract;
• The contract of purchase / sale of the car;
• Application of a standard sample for early termination of insurance;
• Any document proving your identity.

This is the basic list of documents, which is mandatory. However, depending on the reason for the termination, the insurance company has every right to request some additional documents. Therefore, it is recommended to clarify in advance before the insurer's representatives the exact list of all necessary papers and prepare them in advance to terminate the OSAGO contract as quickly and without unnecessary problems.

In what cases may the termination of an insurance contract be required?

To date, early termination of MTPL is possible in the following cases:

• Death of the owner of the car;
• Expiration of the validity period of the license of the insurer for the performance of its activities;
• A traffic accident in which the car was very badly damaged and not recoverable;
• Change of the owner of the car.

In some cases, cancellation of the contract of OSAGO on the initiative of the insured is possible, however, in practice such cases are extremely rare, so it makes no sense to dwell on them. Depending on the reason why the driver wants to give up insurance services ahead of schedule, the process of opting out of insurance services can take place in different ways. Therefore, each of the possible cases should be considered separately.

Death of the owner of the car

If you want to terminate the insurance contract because of the death of the legal owner of the car, then you need to prepare the following documents:

• Original insurance contract;
• All receipts for the current policy;
• Certificate of death of the owner of the vehicle.

When the entire package of documents is prepared, it remains only to contact the insurance company and file an application.

The car can not be repaired

If the car as a result of an accident is incompatible with life, the term of validity of the OSAGO contract is automatically terminated, however, in order to receive monetary compensation, the owner of the car will need to show checks about payment and the original insurance contract.

Termination of the license from the insurer

If the insurance company has expired the license that allows to engage in this type of activity, the policy ceases to exist automatically and you will not need absolutely any documents and applications. The whole problem is that getting monetary compensation in this case will be very difficult.

Change of the owner of the car

Is it possible to terminate the contract of compulsory motor TPL insurance when transferring the right of own vehicle to another person as a result of sale or donation of property? In this case, the cancellation procedure occurs in the standard manner, however, everyone will have to deal with the former owner, whose personal data are indicated in the insurance contract.

Termination procedure: when is it better to apply?

Many drivers are interested in the question of how to return money for insurance. Earlier, we considered the main cases that allow the termination of the contract between the driver and the insurer, as well as the necessary documents for this, however, when is it better to apply?

The current insurance policy loses its validity from the moment the driver calls the insurance company, and not after the official termination of the contract. Therefore, it is not recommended to delay the submission of the application, since the amount of monetary compensation depends on this. To make it clearer, let's imagine the situation that the car was sold in April, and the former owner of the vehicle submitted an application to the insurance company only in July. In this case, there will be no compensation for 4 months, since the insurance policy was deemed to be valid.

What documents will be collected?

Very often, many insurance companies deny their clients the possibility of early termination of insurance. In order not to be in this situation, it is recommended to prepare a set of documents in advance, which includes:

• Original slab;
• Application for termination of the OSAGO contract;
• Passport or driver's license;
• Receipt for payment of insurance;
• Photocopy of the PTS;
• A copy of the contract of sale / purchase, as well as a power of attorney issued to the new owner;
• A photocopy of the death certificate, in case of premature death of the legal owner;
• An act on the disposal of the vehicle, if it is not subject to recovery;
• Additional documents that can be requested by the insurer.

If everything is in order with the documents, however, representatives of the insurance company persistently refuse to accept your application for cancellation of the policy, then send them by registered mail to the physical address of the main office. In this case, the company simply will not be able to ignore your appeal and will be forced to give an official response.

How does the payment of compensation occur?

According to the current legislation, the return of money to the insured is carried out right after the legal termination of the contract of compulsory motor third party liability is carried out. If it is more convenient for a client to transfer money to his bank account, the mutual settlement procedure can take two weeks longer.

At the same time, the right to refund money in the event of termination of car insurance is entitled to:

• Direct heirs of the owner of the vehicle in the event of his death;
• The rightful owner of the car;
• Any person who has a notarized power of attorney from the owner of the machine.

The amount of compensation for the termination of an insurance contract depends on several factors, the main of which is how much is OSAGO. There is a special formula for calculating the amount of compensation.

The formula for calculating the cash payment for the dissolution of insurance

You already know how to return money for insurance with its early termination, however, how much can you expect at the same time? Insurance companies to determine the amount of compensation are guided by the following formula:

D = (P-23%) * (N / 12), where:

• D - amount of compensation;
• P - amount paid by the insurer at the conclusion of the contract;
• N - number of unused months;
• 23% - related costs incurred by the insurer in the conduct of the business of each client.

Thus, early termination of the contract of OSAGO, a sample of which can be found on the official website of the insurer, for the purpose of obtaining monetary compensation is meaningful only if there are at least 6 months left before the expiration of its validity period. If one or two unused months remain on the policy, the termination does not make any sense, since the amount of compensation can be much less than your accompanying expenses, regardless of how much OSAGO costs.

Early termination of OSAGO: what if money does not come?

There are cases when the driver submitted an application on time, prepared the necessary package of documents and, by all rules, formalized the termination of the insurance contract, however, the cash compensation after two weeks did not go to his bank account. What to do in this situation?

The first step is to contact the insurer and try to find out the cause of the problem. It is possible that the payment is simply delayed. If the fact of payment is confirmed, then there is nothing terrible in this and it is necessary to wait a little longer. However, as practice shows, almost all insurers are very reluctant to terminate the contract of OSAGO and return money to the client. In this case, it is necessary to make a copy of the policy and application, and apply to the Union of Motor Insurers. This self-regulating body deals with the resolution of various disputes between drivers and insurers, and has many levers of influence on company representatives who are unfairly performing their activities. In most cases, contacting this organization helps to solve the problem very quickly and payment of compensation at the time of car insurance cancellation very quickly reaches the addressee.

In what cases is compensation not provided for the termination of a policy?

Early termination of insurance services is the legal right of every citizen, however, in legal practice there are a number of cases where payment of monetary compensation is not provided. One such is the termination of the insurance company. For example, a legal entity was liquidated as a result of bankruptcy, and its inability to meet its financial obligations to customers. In this case, the legislation exempts the insurer from fulfilling its obligations.

The second common case is the termination of the contract by the insurer because the customer provided inaccurate information. In addition, if the owner of the vehicle plans a long trip abroad, and does not plan to use the car during this time, payment of compensation is also not provided, since in this case there are no legal grounds for a refund. In order not to get into an unpleasant situation associated with early termination of insurance, it is recommended that you carefully read the contract when registering the MTPL policy.

Conclusion

The process of termination of the insurance contract involves a lot of problems and does not always go without a hitch. This is due to the fact that in the Russian legislation there are a lot of holes that unscrupulous insurers do not disdain to use. Therefore, if you have any problems, you can always go to court. As practice shows, the overwhelming majority of legal proceedings were won by the insured, since the judicial system prefers to take the position of ordinary citizens. But, no matter how it was, never give up. If you know that the law is on your side, then always contact the relevant organizations for monetary compensation.