Banks to inform borrowers of possibility to obtain insurance policies from any insurer
When applying for a loan, an individual has the right to purchase an insurance policy from any insurer meeting bank requirements. Lenders must inform clients about such possibility and cannot impose services of specific companies on them. This follows from the joint letter of the Bank of Russia and the FAS Russia.
Banks must publish requirements for insurance policies on their websites and make them available in customer service locations. Lenders must accept insurance policies subject to the fulfilment of two conditions: the insurer’s credit rating is not lower than A- and the insurance policy complies with the bank’s requirements. Upon the receipt of the policy, banks have seven business days to inform borrowers of their decision to accept/ reject the policy. This will help avoid delays in the consideration of documents.
Earlier, the Bank of Russia informed lenders about ensuring borrowers’ rights to freely choose an insurer for getting an insurance policy related to obtaining a loan.