What can banks impose insurance for?

A bank or microfinance company is looking for any ways to increase yield from each loan product sold. One of these methods is the sale of insurance coverage. Insurance will cover costs and losses if the client is not able to pay off debt. Obviously, the client does not need such a product — it increases the cost of the loan and does not provide special advantages. In the event of repayment of insurance coverage, the debtor will still remain a bank or microfinance organization.

The law introduces the imperative rule — the client has the right and can refuse the imposed financial service. The client is entitled to declare refusal and make a loan without insurance coverage.

Banks and microfinance companies often walked on cunning. If the insurance coverage is refusing, the client declared a refusal to design a loan. The reasons were the most different — the financial institution is not obliged to declare the causes of refusal.

Pay attention to the following details:

Insurance payments can be obtained in case of unforeseen circumstances, but this is 1 case per 10,000,000 insurance contracts.

Examples of such cases: earthquake, the fall of the celestial body, flooding and other natural disasters.

Employees of banks may tell fabulous stories about insurance and multi-million dollar payments, as well as full coverage of the loan at the expense of insurance companies. For them, the main thing is to conclude an insurance contract.

With cancellation of the coating, the cost of the loan is reduced. The amount may be rather big. To the body of a loan, insurance may be up to 5-10%, and in some cases 20-30% of the cost of the loan. If you break a loan for several years, an impressive savings will succeed.

The court always becomes the direction of the debtor. In addition to banning the imposition of insurance, the client protects the law on the protection of consumer rights. It is forbidden to sell the service, the condition and value of which was not agreed by the client or imposed on him against his will. Even after signing the contract, there is a duty of termination of insurance coverage.

Banks go to the trick, offering a loan with a reduced interest rate — subject to the design of the insurance product. This is a deliberately losing position. Even concluding a contract, the consumer has the right to reduce the final interest rate. Without risk for the subject of the contract — the car. The bank is not entitled to terminate the contract, change the essential conditions in its favor — for example, one-sided increase in the rate. Any such action can be easily challenged in court.

If you have problems with failure from insurance,

Of course, everyone himself decides whether he needs insurance or not, but at the moment the percentage of insurance payments is very small!

It would be very interesting to know how people refuse insurance, and is there anyone here who received insurance coverage?

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