प्रेस विज्ञप्ति / Press Release

Insurance Regulatory and Development Authority of India Press Release | 10th September 2026

Order in the matter of Canara HSBC Life Insurance Company Limited The Insurance Regulatory and Development Authority of India (IRDAI) passed an

Order against M/s Canara HSBC Life Insurance Company Limited (‘Insurer’) pursuant to enforcement proceedings arising from allegations of mis-selling of a life insurance policy to an 88-year-old senior citizen. The proceedings were initiated after the Authority took suo-motu cognizance of a social media post and sought explanations from the Insurer.

The case related to the sale of a deferred annuity policy with an annual premium of Rs. 2 lakh and a four-year premium-paying term, through the Insurer’s corporate agent, Canara Bank, to an 88-year-old customer, with his daughter shown as the annuitant.

On examination, the Competent Authority found that the approved product specified an entry age of 30 to 80 years, whereas the proposer was 88 years old. It also found that adequate suitability and financial assessment had not been undertaken despite the customer’s advanced age and the significant premium commitment. Deficiencies were also observed in the verification call, proposal form, disclosure of policy features and other solicitation processes.

It was further observed that the benefit illustration did not have verifiable acknowledgement by the policyholder, the Customer Information Sheet and proposal form copy were not provided at the point of sale, premium was collected prior to policy issuance, and the consequences of the proposer’s death during the premium-paying term were not adequately disclosed.

The Competent Authority held that, taken together, these deficiencies demonstrated failures in adherence to approved product features, suitability assessment, solicitation and verification, proposal processing, disclosure and internal controls, and constituted mis-selling and inadequate protection of the policyholder.

Subsequently, upon the matter coming to its notice, the Insurer met the policyholder and, at his request, refunded the full premium of Rs. 4.09 lakh, including the second-year premium, and reversed the commission. The Insurer also undertook corrective measures, including revision of the product brochure, policy document and suitability assessment framework, and introduction of pre-issuance video-based validation calls.

After considering the facts and submissions, the Competent Authority imposed a penalty of Rs. 1 crore (Rupees One Crore only) under Section 102 of the Insurance Act, 1938, for violations of the IRDAI (Protection of Policyholders’ Interests, Operations and Allied Matters of Insurers) Regulations, 2024, the IRDAI (Corporate Governance for Insurers) Regulations, 2024 and provisions of the Master Circular on Protection of Policyholders’ Interests, 2024.

The Competent Authority also directed the Insurer to undertake a comprehensive audit of policies sold to proposers/policyholders above 75 years of age through Canara Bank, strengthen the oversight framework governing its corporate agents, and ensure full and effective implementation of the Bima-ASBA facility across all distribution channels.

The Insurer has also been directed to place the Order before its Board and submit an Action Taken Report within the stipulated period.

The detailed Order is available at Order in the matter of Canara HSBC Life Insurance IRDAI remains committed to ensuring robust policyholder protection, fair and transparent solicitation, suitability of insurance products, good governance and accountability across the insurance sector. The Authority will continue to take appropriate supervisory and enforcement action wherever regulatory violations are observed.