An 88-year-old Canara Bank customer was sold a deferred annuity policy despite the product brochure specifying that the entry age should be between 30 and 80 years, according to the Insurance Regulatory and Development Authority of India (IRDAI).
The regulator has slapped a penalty of Rs 1 crore on Canara HSBC Life Insurance Company Ltd after uncovering multiple lapses in how the policy was sold, underwritten, issued and disclosed. The insurer had refunded Rs 4.09 lakh, including the second-year premium, to the policyholder and reversed the commission after the issue came to light. However, IRDAI said that this refund did not undo the regulatory violations.
