IRDAI imposes ₹1 cr penalty on Canara HSBC Life for mis-selling policy to 88-year-old
The IRDAI has fined Canara HSBC Life Insurance ₹1 crore for mis-selling a deferred annuity policy to an 88-year-old man. The regulator cited failures in suitability assessments, inadequate disclosures, and poor verification processes during the sale.
Why it matters
This highlights the regulatory crackdown on predatory financial practices targeting vulnerable senior citizens in the insurance sector.
The Insurance Regulatory and Development Authority of India (IRDAI) has imposed a ₹1 crore penalty on Canara HSBC Life Insurance Company for mis-selling a life insurance policy to an 88-year-old man.
The case pertains to a deferred annuity policy, with an annual premium of ₹2 lakh and a four-year premium-paying term, that was sold by the insurer’s corporate agent, Canara Bank, in February 2025 to the senior citizen with his 57 year old daughter as the annuitant.
Initiating proceedings, suo motu, on a social media post, IRDAI observed that the product specified an entry age of 30 to 80 years. It further noted that adequate suitability and financial assessments had not been undertaken, despite the customer’s advanced age and the significant premium commitment involved. IRDAI also identified deficiencies in the verification call, proposal form, disclosure of policy features, and other aspects of the solicitation process.
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