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The Central Bank proposed to change the conditions for insurance of bank cards and household appliances (November 7, 2022)

The Bank of Russia proposed establishing minimum requirements for two common types of property insurance — bank cards against fraudulent charges, as well as household and electronic equipment. In particular, card insurance should protect against debiting funds without the consent of the client, and household appliances and electronics insurance should cover the risks of loss (destruction), theft or damage to property, according to the regulator’s draft instructions published on the website for discussion.


“Now these types of insurance have a low level of payments with a high percentage of refusals in compensation. Often, such insurance includes protection against risks, in the event of which the client is already entitled to compensation. By law, the bank is obliged to reimburse the money stolen from the card, unless it proves that the client has violated the rules for using the card. Household and electronics insurance often guarantees repairs to which the buyer is legally entitled. At the same time, the most significant risks for the consumer (for example, theft of property or debiting money in case of violation of the rules for using the card) are excluded from the insurance coverage, ”the Central Bank explained.


In this regard, the regulator proposes to establish a list of risks that must be included in the insurance policy. In particular, according to the Central Bank, bank card insurance should protect against debiting funds without the consent of the client, and household appliances and electronics insurance should cover the risks of loss (destruction), theft or damage to property. In addition, the Bank of Russia proposed to establish a 30-day period for the payment of compensation for such insurances, which is currently not regulated at all and in practice can be unreasonably long.

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