2 hrs ago
IRDAI Fines Canara HSBC Life ₹1 Crore Over 88-Year-Old Policy
India’s insurance regulator fined Canara HSBC Life ₹1 crore.
The company sold a deferred annuity policy to an 88-year-old customer.
The policy required payments of ₹2 lakh each year for four years.
The regulator said the product was meant for people aged 30 to 80.
It also said the company did not properly check whether the policy suited the customer.
Some important documents and policy details were not properly given or explained.
The policy was sold through Canara Bank, and the customer’s daughter was named as the annuitant.
The regulator is also proposing a public digital registry to make insurance information clearer and encourage competition.
IRDAI fined Canara HSBC Life Insurance Company Limited ₹1 crore for mis-selling a life insurance policy to an 88-year-old customer.
The deferred annuity policy required an annual premium of ₹2 lakh for four years and was sold through Canara Bank.
The approved product allowed entry only for customers aged 30 to 80, but the proposer was 88 when the policy was sold.
IRDAI found deficiencies in suitability assessments, verification, disclosures, documentation, premium collection and internal controls.
IRDAI has separately proposed a Public Insurance Registry to improve transparency, competition and customer experience in insurance.
- Who
- The Insurance Regulatory and Development Authority of India fined Canara HSBC Life Insurance Company Limited over a policy sold to an 88-year-old customer.
- What
- IRDAI imposed a ₹1 crore penalty after finding mis-selling and related sales-process lapses involving a deferred annuity policy.
- Where
- The action was reported from New Delhi, and the policy was sold through Canara Bank.
- When
- The article is dated September 11; the year is not specified.
- Why
- IRDAI found problems involving product eligibility, suitability assessment, solicitation, disclosures, documentation, premium collection and internal controls.
Key facts
- Penalty
- ₹1 crore
- Insurer
- Canara HSBC Life Insurance Company Limited
- Customer age
- 88 years
- Annual premium
- ₹2 lakh
- Premium term
- Four years
- Distribution channel
- Canara Bank, the insurer’s corporate agent
- Proposed initiative
- Public Insurance Registry, a digital public infrastructure intended to create a more connected, transparent and efficient insurance ecosystem
Sources
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