From October 1, the Bank of Russia introduces new requirements for life and health insurance for consumer and mortgage borrowers. As follows from the instructions published on the website of the regulator, insurance coverage will have to meet a minimum standard, and information about the insurance conditions should be presented in a form accessible to the client – in a key information document (KID).
“Now policies on credit products contain an extensive list of exclusions, are characterized by a low level of payments, as well as the complexity of the reimbursement procedure. The new rules will increase the consumer value of credit insurance products – for example, the grounds for refusing an insurance payment have been significantly reduced, a maximum period for payment has been set equal to 30 days, ”the press service of the Central Bank explained.
The regulator made it mandatory in the key information document to indicate in a simple and understandable form information about insurance coverage, the grounds for refusing to pay and the amount of the premium refund in case of early cancellation of insurance. This, according to the Central Bank, will allow the borrower to make an informed decision to purchase the policy.