Translation. Region: Russian Federation –
Source: Central Bank of Russia
An important disclaimer is at the bottom of this article.
Consumers have the right to independently select an insurer from those that meet the bank's criteria and change them at any time during the loan term. It is unacceptable to force a specific insurance company on the borrower or provide any preferences in this case, including a reduced interest rate. This is stated by the Bank of Russia and the Federal Antimonopoly Service of Russia. reminded credit institutions.
The bank must inform the client within 7 business days of submitting the documents whether the provided insurance policy is suitable or provide a justification for the refusal. If the bank rejects the insurance policy and increases the loan interest rate, the borrower can provide a different policy. If it meets the bank's requirements, it is recommended to reduce the interest rate to the previous level.
Furthermore, credit institutions need to simplify the accreditation process for insurers and automatically accept those with a credit rating. Banks can independently determine their own acceptable rating scale, but the cutoff cannot be higher than "A-." This will expand the choice of insurance companies and help reduce the cost of policies for consumers.
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Please note: This information is raw content obtained directly from the source. It represents an accurate account of the source's assertions and does not necessarily reflect the position of MIL-OSI or its clients.