An 88-year-old customer who had trusted his Canara Bank branch for 31 years was sold a deferred annuity insurance policy that was structured to start paying out years later, when he would have been around 93. The Insurance Regulatory and Development Authority of India (IRDAI) has imposed a Rs 1 crore penalty on Canara HSBC Life Insurance Company over the sale of a deferred annuity policy to the 88-year-old customer. The regulator found multiple shortcomings in the way the policy was sold, including issues related to product suitability, verification, disclosures and the solicitation process.
The case came to IRDAI's attention after a social media post raised questions about the policy sold to the senior citizen through Canara Bank, which was acting as the insurer's corporate agent. IRDAI subsequently sought an explanation from the insurer and initiated proceedings
