Canara HSBC Life fined Rs 1 crore for mis-selling policy to 88-yr-old via Canara Bank
IRDAI said the insurer failed suitability checks and ordered a comprehensive audit of policies sold to customers older than 75 through Canara Bank.
- On Friday, the Insurance Regulatory and Development Authority of India imposed a ₹1 crore penalty on Canara HSBC Life Insurance Company for mis-selling an annuity policy to an 88-year-old man.
- The insurer sold the policy via Canara Bank despite product guidelines restricting entry age to 80 years, and IRDAI noted that "Adequate suitability and financial assessment had not been undertaken" for the customer.
- Deficiencies in verification calls, proposal forms, and feature disclosures marked the solicitation process, violating Protection of Policyholders Interests, Operations and Allied Matters of Insurers Regulations regarding policyholder safeguards.
- Following the incident, Canara HSBC Life refunded the full premium of ₹4.09 lakh and revised its product documentation, while implementing pre-issuance video-based validation calls to strengthen agent oversight.
- IRDAI directed the insurer to conduct a comprehensive audit of policies sold to customers above 75 years of age and mandated full implementation of the Bima-ASBA facility across all distribution channels.
15 Articles
15 Articles
₹1 crore fine penalty: Why did IRDAI penalise Canara HSBC for mis-selling insurance to an 88-year old? What went wrong
The regulator flagged several shortcomings in the sale, including failures related to product suitability, solicitation, disclosures and the insurer’s internal controls.
Why IRDAI Penalised Canara HSBC Life Insurance INR 1 Crore for Selling Policy to 88-Year-Old | 📰 LatestLY
IRDAI penalised Canara HSBC Life Insurance INR 1 crore for mis-selling a policy to an 88-year-old senior citizen, citing severe compliance lapses, age limit violations, and inadequate suitability assessments. Following regulatory intervention, Canara HSBC Life refunded the full premium of INR 4.09 lakh and reversed associated sales commissions 📰 Why IRDAI Penalised Canara HSBC Life Insurance INR 1 Crore for Selling Policy to 88-Year-Old.
IRDAI imposes Rs 1 crore penalty on Canara HSBC Life Insurance on policyholder interest lapses
Canara HSBC Life Insurance was fined Rs 1 crore by IRDAI for policyholder interest lapses. The penalty follows a show cause notice over policy mis-selling concerns and includes directives for compliance.
The Economic Times
Times of IndiaCanara HSBC Life fined Rs 1 crore for mis-selling policy to 88-yr-old via Canara Bank
Canara HSBC Life Insurance Company received a ₹1 crore penalty from IRDAI. The fine was imposed for mis-selling a deferred annuity policy to an 88-year-old individual. IRDAI identified several procedural and disclosure deficiencies in the sales process. The insurer subsequently refunded ₹4.09 lakh to the affected customer. This action highlights regulatory scrutiny over insurance sales practices.
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