IRDAI imposes ₹1 crore penalty on Canara HSBC Life
IRDAI has levied a ₹1 crore penalty on Canara HSBC Life Insurance Company for mis-selling a policy to an 88-year-old customer, according to the regulator.
What the regulator flagged
- Product suitability: the sale did not adequately assess whether the policy matched the customer’s needs or risk profile.
- Solicitation practices: concerns about how the policy was offered to the customer.
- Disclosures: insufficient or unclear disclosure of policy terms, charges, and benefits.
- Internal controls: weaknesses in the insurer’s controls over sales processes and compliance checks.
Implications
The action highlights IRDAI’s focus on protecting senior customers and strengthening governance and oversight in bancassurance and insurance distribution.
