The procedure for early termination of the contract CASCO
Our citizens try to avoid the red tape. Usually, only when faced with the sale of a motor vehicle or unsatisfactory performance of the buyer’s company policy, the person begins to find out whether it is possible to terminate the insurance prematurely.
The civil code allows the insured vehicle to the citizen to terminate the policy at any time. For this purpose it is necessary to submit to the firm that sold the policy:
- Declaration of termination of the insurance contract. Date of notification will be deemed the date of termination of Treaty obligations;
- the identity card of a citizen, issued a hull;
- the original policy.
Other options for termination of the contract CASCO
The law prohibits the company-the insurer of the termination of contractual obligations on the hull before the courts will be rendered the appropriate verdict. In the case where no court orders, and the company threatens you break contractual obligations, you should know that it is just empty threats, unenforceable. Early termination of the hull insurance either through your initiative or with the agreement of the parties. The courts usually render verdicts in favor of the insurance companies in the following situations:
- when customers refuse to pay agreed contributions, or pay them irregularly;
- when the firm because of higher insurance risks increases the size of contributions, and the clients refuse to pay for them. The company may require increased contributions in connection with the contents of the car on the street, malfunction alarm, the loss of the owner of the registration;
- when it turns out that the customer purchasing the hull, submitted knowingly false information.
In some cases the insurer has the right to terminate the policy
The verdict of the court rendered in favor of the company, the insurer, means that there will be no refund of fees to the client.
If the deliberate actions of a citizen who obtained the insurance (for example, arson) or accident, are not considered insured event led to the destruction of the insured vehicle, the contractual obligations of the insurance company under CASCO are terminated automatically. Automatically terminate as of the policy when the motor vehicle dies as a result of an insured event, and the firm-the insurer fully reimburses the cost.
The amount of money that the policyholder receives as a result of termination of the contract CASCO
Before signing any contract, read it carefully and try to understand the essence of written. If you have not done so, signing the contract CASCO, losses incurred as a result of its early termination, you can assume the price to pay for increasing legal literacy.
Despite the fact that the client can easily terminate the insurance, to return the money paid as insurance premiums, is often very problematic. The agreement usually stipulates how his early termination and how money matters are governed. If the text of the Treaty is no information on this point or expressly stated that the funds will not be returned to the customer, so the company money you won’t get it. The refusal of payments is not a whim of the owners of the insurance company: this provision is contained in article 958 of the civil code. However, not all so sad: even in this case, you will be able to reduce losses to a minimum, in conjunction with rupture of contractual obligations to the date of payment of the next installment. Also to return the already paid insurance premium you can try through the court, if the insurance company lost the license.
Carefully study the contract
Most often in case of early termination some money still can be returned, however, to accept that it will be much less than you’d expect. The fact that the company charges a fee for case management. Its size depends on the internal company instructions, and can range from ten to forty per cent of the insurance premium. Roughly the amount the client will receive after the termination of the contract, can be calculated by the formula:
BC = (RSW / 365) * Number of days before the expiry of the contract * (1 — HPC) — vpss, where:
Sun — return sum;
RSV the amount of the insurance premium;
KVD — the price at which the deductions are considered for the case (0.1 to 0.4). For example, if for case management will be charged 30%, CVD = 0.3, while the size of the returned premium must be multiplied by 0.7;
Its — payments for insurance claims.
However, if we approach the termination of contractual obligations wisely, it is possible to return the money, a little more than the calculated amount. Here are a few options:
- you want to terminate the policy in connection with the sale of a motor vehicle. In that case, invite him to whom sell the car, you have to buy insurance. He will still have to insure your purchase, so why not make this the same company that issued the previous policy? The new owner will just use the rest of your insurance prior to your next payment, and with you, of course, will not take fees for the conduct of the case. Accordingly, you get the amount without regard to the HPC;
- selling an old car, you get a new one. If to the company, the insurer claims you do not, you may well new car to insure. In addition, what you save on the Board for the conduct of the case, it is possible that even and get a discount as a regular customer.
Knowing your rights and responsibilities, you will be able legally to terminate the contract with the insurance company.