How to return insurance on a loan
Posted: Wed Feb 19, 2025 5:38 am
To reduce the risk of non-repayment of debt, banks often offer clients life, health, collateral or liability insurance along with the loan. There are also policies that allow you to receive compensation in the event of job loss. If an insured event does occur, the bank will be able to get its money back through insurance payments.
At the same time, purchasing a policy usually costs a large sum, so after receiving a loan, many people think about returning the insurance. We tell you in which cases this is possible.
Is it possible to refuse insurance?
According to the Law "On the Protection of Consumer Rights" dated 07.02.1992 No. 2300-1, commercial organizations do not have the right to impose additional services on clients, including mandatory insurance. That is, the purchase of a policy must be voluntary, and the client has the right to refuse insurance.
An exception is insurance of collateral property when slovenia mobile database applying for a mortgage. According to Article 31 of Federal Law No. 102 "On Mortgages", the acquired property, which is transferred as collateral to the bank, must be insured against the risks of loss, damage, destruction. In this case, only structural elements are included in the policy - walls, ceilings, entrance doors, window units. Interior decoration is not included here and is insured at the borrower's discretion.
When applying for a consumer loan, you can refuse to purchase a policy. This does not affect the likelihood of approval of the application, but the bank may increase the interest rate on the loan. As a rule, the dependence of the rate on financial protection is indicated in the tariffs of the credit institution.
At the same time, purchasing a policy usually costs a large sum, so after receiving a loan, many people think about returning the insurance. We tell you in which cases this is possible.
Is it possible to refuse insurance?
According to the Law "On the Protection of Consumer Rights" dated 07.02.1992 No. 2300-1, commercial organizations do not have the right to impose additional services on clients, including mandatory insurance. That is, the purchase of a policy must be voluntary, and the client has the right to refuse insurance.
An exception is insurance of collateral property when slovenia mobile database applying for a mortgage. According to Article 31 of Federal Law No. 102 "On Mortgages", the acquired property, which is transferred as collateral to the bank, must be insured against the risks of loss, damage, destruction. In this case, only structural elements are included in the policy - walls, ceilings, entrance doors, window units. Interior decoration is not included here and is insured at the borrower's discretion.
When applying for a consumer loan, you can refuse to purchase a policy. This does not affect the likelihood of approval of the application, but the bank may increase the interest rate on the loan. As a rule, the dependence of the rate on financial protection is indicated in the tariffs of the credit institution.