- Canara HSBC Life Insurance fined Rs 1 crore by IRDAI for policyholder interest issues
- The penalty follows a show cause notice linked to a social media post on policy misselling
- IRDAI issued additional directions and requested an Action Taken Report from the insurer
Canara HSBC Life Insurance Company has been fined Rs 1 crore by the Insurance Regulatory and Development Authority of India (IRDAI) over certain aspects pertaining to policyholder interest under the Protection of Policyholder Regulations, 2024, read with the Corporate Governance Regulations, 2024.
In a regulatory filing on September 10, 2026, the insurer said it received the IRDAI order at 5:33 pm on the same day. The penalty followed regulatory proceedings that began with a show cause notice issued to the company on March 12, 2026.
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The notice was linked to a social media post concerning the misselling of a policy. Canara HSBC Life Insurance said it responded to the notice and was given an opportunity for a personal hearing and to make additional submissions.
After considering the company's submissions and hearing, IRDAI issued its order on September 10 and imposed the Rs 1 crore penalty.
Along with the monetary penalty, IRDAI has issued additional directions to Canara HSBC Life Insurance. The company has been asked to submit an Action Taken Report on those directions within the timelines specified by the regulator.
Canara HSBC Life Insurance said the financial impact of the order is limited to the Rs 1 crore penalty. It added that no impact is expected on the company's operations or other activities.
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The insurer said it will take necessary steps to comply with all directions issued by IRDAI.
The company also reaffirmed its commitment to protecting policyholder interests and complying with regulatory requirements. It said it will continue strengthening its governance and internal controls.
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