New Delhi, September 11, 2026 (Yes Punjab News)
The Insurance Regulatory and Development Authority of India (IRDAI) has imposed a penalty of Rs 1 crore on Canara HSBC Life Insurance Company Ltd for lapses in the sale of a life insurance policy to an 88-year-old customer.
The regulator found multiple deficiencies in the sale of a deferred annuity policy, including issues relating to product suitability, solicitation, disclosures and the insurer’s internal controls.
The proceedings were initiated after IRDAI took suo motu cognisance of a social media post highlighting the sale of the policy to the senior citizen. The policy involved an annual premium of Rs 2 lakh payable for four years and was sold through Canara Bank, the insurer’s corporate agent. The customer’s daughter was named as the annuitant.
During its examination, IRDAI found that the approved product allowed entry only for customers aged between 30 and 80 years. However, the proposer was 88 when the policy was sold.
The regulator also found that the insurer had not adequately assessed the customer’s financial circumstances or the suitability of the product, particularly given his age and the significant premium commitment.
IRDAI identified further shortcomings in the sales process, including deficiencies in the verification call, proposal form and disclosure of key policy features. The benefit illustration did not carry a verifiable acknowledgement from the policyholder, while the Customer Information Sheet and proposal form were not provided at the time of sale.
The regulator also noted that the premium had been collected before the policy was issued. It found that the implications of the proposer’s death during the premium-paying period were not adequately explained to the customer.
Separately, IRDAI has proposed the creation of a Public Insurance Registry (PIR), a digital public infrastructure aimed at building a more connected, transparent and efficient insurance ecosystem.
According to the regulator, the proposed registry could reduce information gaps and promote greater competition among insurers and other market participants, potentially encouraging innovation in insurance products, competitive pricing, improved services and a better customer experience.
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