An 88 year old customer was sold a deferred annuity policy even though the product brochure specified an entry age of 30 to 80 years. IRDAI has now imposed a ₹1 crore penalty on the insurer. The policy carried an annual premium of ₹2 lakh for four years. The insurer argued that the age limit applied to the annuitant, who was the customer’s 57 year old daughter, rather than the 88 year old policyholder. IRDAI rejected that explanation. But here’s the part people often misunderstand: the ₹1 crore penalty does not go to the customer. The policyholder received a separate refund of ₹4.09 lakh, including the second year premium, while the ₹1 crore was a regulatory penalty imposed on Canara HSBC Life under the Insurance Act. IRDAI also found other sales process failures, including inadequate suitability assessment and deficiencies in the documents and verification process. It ordered a three year audit of policies sold to customers above 75 through Canara Bank. A refund can compensate a customer. It doesn’t erase a regulatory violation. #Insurance #IRDAI #FinancialAwareness #ConsumerProtection