The Insurance Regulatory and Development Authority of India imposed an INR 10 million penalty on Canara HSBC Life Insurance Company after finding that a deferred annuity policy sold through Canara Bank to an 88-year-old proposer amounted to mis-selling and inadequate policyholder protection. The approved product set an entry age of 30 to 80 years, while the policy required annual premiums of INR 200,000 over four years and named the customer’s daughter as the annuitant. The regulator found failures in suitability and financial assessments, verification, proposal processing, disclosure and internal controls. The insurer did not adequately explain the consequences of the proposer’s death during the premium-paying term, obtain verifiable acknowledgment of the benefit illustration or provide key documents at the point of sale. It subsequently refunded INR 409,000 in premiums, reversed the commission and introduced measures including revised documentation and pre-issuance video validation calls. Canara HSBC Life must audit policies sold through Canara Bank to proposers or policyholders over age 75, strengthen oversight of corporate agents and fully implement the Bima-ASBA facility across all distribution channels. It must also place the order before its board and submit an action taken report within the stipulated period.
2026-09-10Insurance Regulatory and Development Authority of India
Insurance Regulatory and Development Authority of India fines Canara HSBC Life INR 10 million for mis-selling to an 88-year-old customer
The Insurance Regulatory and Development Authority of India fined Canara HSBC Life INR 10 million for mis-selling a deferred annuity policy to an 88-year-old proposer whose age exceeded the product’s approved limit. The insurer refunded INR 409,000 and must audit policies sold through Canara Bank to customers over 75, strengthen corporate-agent oversight and implement Bima-ASBA across all distribution channels.