FAS declares war on insurance slavery

The Federal Antimonopoly Service has prepared a document providing for the borrower's right to choose an insurance company when applying for a loan.  What is more, the right to replace the insurer after signing the loan agreement without worsening the conditions of it is also secured.

The innovation also provides for the obligation of banks to provide a list of insurers with whom it is possible to conclude an agreement.

At the same time, insurance companies themselves must correspond only to a certain credit rating, and banks will no longer be able to provide privileges when signing an agreement with a certain insurer.

It may also be the responsibility of credit institutions to provide borrowers with information on the level of credit ratings that insurance companies must meet. Moreover, if the borrower decides to choose a company with a lower credit rating, he should be aware of the deterioration of his position under the loan agreement. In particular, this applies to the interest rate.

The Antimonopoly Service believes that the innovation will eliminate the situations of imposing a specific insurer, as well as insufficient informing customers about the possibilities of signing an agreement with other similar companies, Izvestia reports.

Soon the initiative will be sent for an interagency approval.