IRDAI has fined Canara HSBC Life Insurance ₹1 crore after finding it mis-sold a deferred annuity policy to an 88-year-old senior customer.

The insurer disclosed the order to the NSE and BSE on 10 September, confirming the penalty was passed under the Protection of Policyholder Regulations, 2024, read with the Corporate Governance Regulations, 2024.

The case goes back several months. IRDAI took note of a social media post about the sale and issued a show cause notice to the company in March 2026.

Canara HSBC Life responded to the notice and was also given a personal hearing before the regulator passed its final order.

According to IRDAI, the policy in question came with an annual premium of ₹2 lakh over a four year term.

It was sold through Canara Bank, the insurer’s bancassurance partner, to an 88 year old customer, even though the product was meant for people between 30 and 80 years of age.

His daughter was listed as the annuitant. The regulator pointed to several gaps in how the policy was handled.

These included missing suitability checks given the customer’s age and the size of the premium, incomplete disclosures, and premium collection before the policy was even issued.

IRDAI said these lapses amounted to mis-selling and a failure to protect the policyholder’s interests.

After the issue surfaced, Canara HSBC Life met the customer and refunded ₹4.09 lakh, including the second year’s premium, and reversed the commission paid on the sale.

The company has since updated its product brochure, policy documents and suitability assessment process, and introduced video based validation calls before issuing policies.

IRDAI has now directed the insurer to audit all policies sold through Canara Bank to customers above 75, tighten oversight of its corporate agents, and fully roll out the Bima ASBA payment system across its distribution network.

Canara HSBC Life said the financial impact is limited to the penalty amount and does not affect its broader operations.

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