The Bank of Russia imposed a “cooldown period”

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To improve legal regulation and control of insurance companies’ activity and protect financial services consumers and investors on the financial market the Central Bank of the Russian Federation brings to the notice of citizens the following information. 

The Bank of Russia has imposed a “cooldown period” — a term, during which a citizen can terminate a voluntary insurance agreement and obtain in a certain order the paid insurance premium. It is stipulated by the Order of the Bank of Russia (No. 3854-У dd. 20.11.2015) “Minimal (standard) requirements to conditions and order of certain types of voluntary insurance”.

The necessity of the “cooldown period” is connected with negative established practice of touting to physical bodies voluntary insurance agreements, in conclusion of which they are not interested, often during obtaining of insurance or banking services. 

The law forbids to condition obtaining of one type of services by compulsory use of other services. Administrative liability is set by the law for touting of additional services by conclusion of CMTPL agreement (Compulsory Motor Third Party Liability). However, it is difficult to prove the fact of touting.

The imposing of “cooldown period” will allow customers to refuse from touted or impractical insurance service without specifying of special requirements or special administrative or judicial procedure. 

The “cooldown period” lasts no less than 5 days (the insurer can also establish a longer period) and starts from the day of voluntary insurance agreement conclusion regardless of the premium payment date. 

For termination of insurance agreement, a citizen needs to submit a written application to the insurance company. During the “cooldown period” in case of refusal from the insurance the insurance company needs to refund the money for the certificate of insurance in full, if the insurance agreement did not enter into force. If the agreement is already in force, the insurer has the right to withhold part of the premium proportional to the number of days from the moment the agreement entered into force.  The insurance company must return the money to the citizen during 10 working days after receiving of the application. 

If the insurer refuses to terminate the agreement, it is necessary to address a complaint to the Bank of Russia. The Bank of Russia also accepts from citizens complaints concerning activity of financial organizations, regulated by the Bank of Russia, via “Internet-reception” on the web-site of the Bank of Russia www.cbr.ru and in written form to the address:107016, Moscow, 12 Neglinnaya Str. and to the address of Sevastopol Branch of the Central Bank of the Russian Federation: 299001, Sevastopol, 1/3 M. Dzigunskogo Str. 

Also any citizen can call the Call-Center of the Bank of Russia 8 800 250-40-72 (the call is free from Regions of the Russian Federation), +7(495) 771-91-00 or “hotline number” of the Sevastopol Branch of the Central Bank of the Russian Federation 8 (0692) 53-06-48.

New rules apply to almost all popular type of insurance. The list includes life insurance, accident insurance, motor own damage insurance, motor- and water transport owner responsibility, voluntary medical insurance, third-party liability and financial lines insurance. 

 

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