The bank approved the loan, but the amount in your account was less than what the contract stated. The difference is the insurance you were "strongly recommended" to take out when applying. Many borrowers only find out about this after signing and assume the money is lost. In reality, you can get the insurance refunded — and often even without going to court. The key is to know about the cooling-off period, correctly identify the recipient, and meet the deadlines.
In recent years, the scheme with add-on insurance has become tougher: banks increasingly include insurance in the loan principal rather than charging it as a separate payment. This means you pay interest on the insurance amount as well. Losing such a payment is doubly frustrating. But it is still possible to get it back if you act step by step.
What the cooling-off period is and why it decides everything
Since 2020, a rule has been in force: a borrower can cancel voluntary insurance taken out together with a loan within 14 days (for some types of insurance — up to 30 days). This period is called the "cooling-off period." It gives you the right to a full refund of the insurance premium, not just a part.
It is important to understand: the cooling-off period does not depend on what is written in the insurance contract. Even if it says "the insurance premium is non-refundable," the law is still on your side. The catch is that banks and insurance companies may resist this — for example, by delaying their response or offering to refund only part of the premium.
If the 14 days have passed, getting your money back is harder but still possible. You will have to prove that the insurance was forced on you: for example, the bank refused the loan without it, or the rate without insurance was noticeably higher. This becomes a dispute with the bank and the insurer, which may end up in court.
Where to look for the insurance in your documents
The first thing to do is find the policy and the loan agreement. They are usually in the folder of documents you were given when signing, or in your online banking account. If you don't have the papers, request an account statement and a copy of the loan agreement at a branch or through the app.
In the loan agreement, look for:
- the loan amount — it may include the insurance premium;
- the insurance terms — a separate clause or annex;
- the insurer's details — name, tax ID, address.
In the policy, look for:
- the insurance premium (how much you paid);
- the start date of coverage — the cooling-off period is counted from this date;
- the type of insurance — life, health, property, or other.
If the documents are lost, you can restore them by writing an application to the bank or the insurer. This takes time but is not critical if the deadline has not yet passed.
The AI twin on asibiont.com can analyze the loan agreement and policy for you: it will find the insurance start date, the premium amount, and the insurer's details. This saves an hour or two of manual searching through PDF files.
Step-by-step guide: how to get the insurance refunded
Step 1. Check the deadline
Count 14 days from the date the insurance coverage starts. If the date falls on a weekend, the deadline shifts to the next business day. For some types of insurance (e.g., accident insurance), the cooling-off period may be 30 days — check the policy or ask the insurer.
Step 2. Prepare the application
The application is written in free form addressed to the insurance company. Include:
- your full name, passport details, address;
- the policy number and date of issue;
- a demand to terminate the contract and refund the insurance premium in full;
- bank details for the transfer.
You can find a template on the insurer's website or draft one yourself. The main thing is to reference the cooling-off period and demand a full refund.
Step 3. Send the application
You can deliver the application in person to the insurer's office (ask for a receipt stamp) or send it by registered mail with acknowledgment of receipt. The second option is safer: you will have proof of sending. Attach a copy of the policy and the loan agreement to the application.
Step 4. Wait for the response
By law, the insurer must review the application and refund the money within 10 business days of receipt. If the money hasn't arrived, call and check the status. Sometimes refunds are delayed under the pretext of a "review."
What to do if the bank or insurer refuses
A refusal may be verbal or written. In any case, demand a written response with reasons. If the insurer refuses, citing "expired deadline," check whether you counted it correctly. Sometimes the company counts the period from the date the contract was signed, not from the date coverage began.
Another common reason for refusal is that the insurance was taken out by the bank, not by you. In that case, you need to file a complaint with the bank demanding a refund of the amount withheld for insurance. The bank may redirect you to the insurer, but that does not relieve it of responsibility if it sold the policy as part of the loan product.
If both the bank and the insurer refuse, the next step is a complaint to the central bank or a lawsuit. The central bank reviews complaints about unfair practices but does not award compensation. A court can order a refund, but it is long and costly.
Deadlines and amounts: what to expect
A refund during the cooling-off period is 100% of the insurance premium. If the insurance is included in the loan principal, the bank must recalculate the interest upon refund: you were paying interest on the insurance amount as well. In practice, banks often refund only the premium and keep the interest. This is a disputable point and can be challenged in court.
If the cooling-off period has passed, a refund is possible only through court and only if you can prove the insurance was forced. The refund amount will depend on the court's decision — they may refund part of the premium proportional to the unused term.
How the AI twin helps at every step
Manually searching for dates and amounts in contracts takes time. The AI twin on asibiont.com can parse documents: upload the PDFs of the loan agreement and policy, and it will extract the insurance start date, the premium amount, and the insurer's details. Based on this data, it will prepare a draft application and complaint — you just need to review and send them.
In addition, the AI twin can set reminders for the end of the cooling-off period and the insurer's response deadline. This is useful if you have several loans or simply don't want to keep track of deadlines in your head. But remember: you will still have to send the documents and call the insurer — the AI doesn't do that for you.
A non-obvious conclusion: insurance can be beneficial
Refunding insurance is not always the right decision. Sometimes the policy gives you a discount on the loan: the rate without insurance is several percentage points higher. If the rate difference over the entire loan term is less than the cost of insurance, it is more beneficial to keep the insurance. Do the math: for example, a $5,000 loan for 3 years, the rate with insurance is 15%, without it — 18%. The overpayment in interest without insurance could be about $300, while the insurance costs $200. Then it is more beneficial to take the loan with insurance and not refund it.
A second nuance: if you repay the loan early, you can get the insurance refunded proportionally for the unused term, even if the cooling-off period has passed. This right is enshrined in law. But banks do not advertise this possibility.
What depends on the situation
Insurance refunds can vary depending on the region (for example, in major cities insurers are more likely to cooperate), the type of insurance (life and health are refunded more readily than property), and who sold the policy — the bank or an agent. If you took out the loan online, the documents may be electronic, and you can also submit the application via online banking.
In any case, the earlier you start, the higher your chances. The cooling-off period is not a myth but a real tool. The main thing is not to miss it and to correctly determine whom to write to.
If you want to save time on analyzing documents and preparing applications, try the AI twin on asibiont.com: it will parse the policy and loan agreement, extract the necessary figures and dates, prepare a draft application, and remind you of deadlines. But the decision to refund and the visit to the insurance company remain up to you.