Russia: insurance of hypothec borrowers remains unessential
21 November 2008The next attempt of bankers to make obligatory life insurance at hypothec crediting has appeared unsuccessful - the government has refused to include such norm in the legislation.
In the second reading State Duma has approved the amendments to laws “On mortgage” and “On hypothec securities”, which provide introduction of deposit account of mortgages under the loans. It is worth of mentioning, that within the limits of this document the bank lobby tried to make the amendment to the law “On mortgage”, which is not connected with the account of mortgages.
Evgenie Chepenko, the vice-president of committee on hypothec crediting of Association of the Russian banks, proves that within the limits of bill completion to the second reading the association has offered the amendment, providing the right of bank to demand from the borrower to insure his life at gaining of the hypothec credit.
However, the government has rejected this amendment. As it has become known, the acceptance of this amendment would legalize imposing of insurance service to borrowers.
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