Canara HSBC Life Insurance Company has been penalised Rs 1 crore by the Insurance Regulatory and Development Authority of India. The order relates to lapses concerning policyholder interest. The company disclosed the development in a regulatory filing to the National Stock Exchange and BSE on September 10.
Why IRDAI fined Canara HSBC Life
The case traces back to a show cause notice IRDAI issued to the company on March 12, 2026. The notice was based on a social media post relating to the mis-selling of a policy.
The company responded to the notice. It was also given an opportunity for a personal hearing and made additional submissions subsequently, the filing said.
Canara HSBC Life gets Rs 1 crore penalty
After considering the company’s submissions and hearing, IRDAI passed its order on September 10, 2026. A penalty of Rs 1,00,00,000 was levied with respect to certain aspects pertaining to policyholder interest, under the Protection of Policyholder Regulations, 2024, read with the Corporate Governance Regulations, 2024.
As part of the order, IRDAI also issued additional directions to Canara HSBC Life. The company has been advised to submit an Action Taken Report on these directions within specified timelines.
Canara HSBC Life’s response to IRDAI
In its filing, Canara HSBC Life said the financial impact is restricted to the penalty amount. No impact is expected on the operations or other activities of the company, it said.
The company said it will take the necessary steps to adhere to all directions mentioned in the order. It added that it remains committed to policyholder interest and to enhancing governance and controls around the same.
About Canara HSBC Life Insurance Company
Canara HSBC Life Insurance Company is a Gurugram-headquartered life insurer promoted by Canara Bank and HSBC. The company, earlier known as Canara HSBC Oriental Bank of Commerce Life Insurance, was renamed following the merger of Oriental Bank of Commerce with Punjab National Bank. It operates through a network of around 107 branch offices across India as of March 31, 2026, and offers protection, savings, retirement, child and ULIP plans through its bancassurance partners.
Canara HSBC Life share price today
Canara HSBC Life Insurance Company’s share price is down 1.71% as of early trade on September 11. The company’s share price was down 0.17% in the past month. However, Canara HSBC Life Insurance Company’s share price has been up 33.86% in the last year.