Sovcombank borrowers complained about the need to “insure themselves against SVO”: the bank explained the requirement

SVO risk insurance on mortgage loans is associated with the lack of compensation for the cancellation of such a mortgage in the event of the borrower’s death or his recognition as disabled as a result of circumstances related to the performance of a special operation, the press service of Sovcombank told RB.RU about this.

• One of the bank’s clients, Alexandra (name changed at the client’s request), contacted the editors of RB.RU. The woman signed a loan agreement with the bank and took out a mortgage on her house. When registering, the bank required insurance for the risks of participation in the SVO, the borrower claims. For specific insurance, necessary for clients under 54 years of age, they had to pay a premium of 0.9% of the debt balance in the first year and 0.5% in subsequent years for personal life and health insurance at the Sovcombank insurance company.

The cost of insurance turned out to be several times higher than the market average. Given that the average amount of a mortgage loan in Russia is 3.6 million rubles, it will be necessary to pay 32 thousand rubles a year for insurance, taking into account the risks of SVO. At the same time, life insurance without taking into account SVO costs 6-7 thousand rubles a year, as follows from the materials of the sravni.ru service. But ordinary insurance does not provide payments in the event of an insured event in the event of participation in hostilities.

The client was unable to find other insurance companies that would cover SVO risks, and with no such option, the bank promised to increase the rate by 1%.

• Alexandra says that Sovcombank requires coverage of risks associated with both active participation in the SVO and negative events, including the crash of a UAV, bombings and sabotage. The woman clarifies that although the risks will be insured, it will be difficult to obtain compensation in the event of an insured event: the insurance does not apply to territories where there is an increased terrorist threat, related to a war zone.

“In fact, if you are in a place where there are risks of SVO, the policy will not return your money. It is true that all insurance companies prescribe this, but at the same time they do not issue a policy “from the SVO,” the borrower explained.

According to Alexandra, it was allowed to split the policy into two payments, for example, to insure the SVO in Sovcombank and the balance in another insurance company or in a credit institution. The client is sure that the bank is violating the antimonopoly law and government decree No. 39 of January 18, 2023, which states that banks must now accept policies from any company with a high reliability rating.

Alexandra is not the only one who has faced such a demand. At least two similar complaints can be found on the banki.ru website, one of which was resolved in favour of the client.

RB.RU has asked the bank itself for clarification.

Sovcombank explained that it offers its clients reduced rates for risk insurance, taking into account the bank’s list, which includes SVO risks.

“The bank offers borrowers reduced rates if they insure their risks, taking into account an extended list of them. Coverage of risks of negative consequences due to military causes for borrowers and their families, according to current legislation, is not included in insurance policies, unless there is a special instruction on this matter,” the bank explained.

In the absence of insurance coverage and failure to provide an insurance policy for similar risks to another insurance company, the bank’s risks are significantly higher. In this regard, the bank rejects the reduced interest rate and increases it, the credit institution explained.

At the same time, the bank does not refuse to negotiate with clients who do not agree with the insurance conditions.

“We are meeting the needs of borrowers seeking to find a reasonable balance between risk protection and lending rates and we will be happy to provide a specific borrower with the opportunity to individually resolve the problem that has arisen,” Sovcombank promised.

According to Russian law, life and health insurance do not cover injuries sustained during hostilities, so regular insurance does not cover such risks.

The Russian FAS explained to RB.RU that excessive requirements for insurance services may be grounds for an appropriate investigation by antitrust authorities.

At the same time, banks’ requirements for the conditions for the provision of insurance services cannot contain conditions that are clearly burdensome for borrowers.

“Failure by banks to comply with established rules, for example, failure to choose an insurer, imposition of services of an insurer affiliated with the bank, excessive requirements for insurance services, may become the basis for an appropriate investigation by antitrust authorities,” the FAS explained.

At the same time, it will be difficult to prove in court that Sovcombank’s demands were illegal, and the final decision may depend on the content of the loan agreement itself.

As RB.RU explains Boris Feldman, Legal Director of DestraLegal.ruInitially, it may seem that additional (insurance) services are clearly imposed here. At the same time, in this case, the freedom of contract provided for in Art. 421 of the Civil Code of the Russian Federation is applied: the bank can offer any conditions, but whether to accept them or not is up to the potential borrower.

But there are two opposite scenarios, the lawyer says. Firstly, when the bank refuses to grant a loan in general, without additional services. In this case, this is an imposition that is unacceptable under the law. Secondly, when the bank increases the interest rate on a previously issued loan after the borrower has refused insurance. An exception may be cases when the borrower refused to insure and the lender’s right to increase the rate is enshrined in the loan agreement. But at the same time, the bank has no right to increase the interest rate on the loan when the borrower decides to change insurance companies and conclude an insurance contract on more favorable terms with an insurer that meets the criteria set by the lender in accordance with the requirements of the law.

In July, the State Duma of the Russian Federation approved in the first reading a bill on the cancellation of mortgage debts of deceased SVO participants at the expense of Rosvoenipoteka, and not of banks. This will not allow the bank to increase mortgage rates for servicemen, the deputies said. The parliament did not specify what to do for peaceful citizens.