The insurance regulator found multiple shortcomings in the selling process, covering both procedures and disclosures. The penalty was imposed on Canara HSBC Life, while Canara Bank was the channel through which the customer bought the policy.

The insurer later returned ₹4.09 lakh to the customer. The report does not give a detailed account of the procedural lapses or explain which disclosures were deficient. It also does not state the policy’s terms, so the precise features that made this sale unsuitable cannot be assessed from the supplied information.

The refund and the regulatory fine are separate parts of the reported outcome: one concerns money returned to the affected customer, while the other is a penalty on the insurer. The supplied report does not mention a separate penalty against Canara Bank or action against individual employees.

For readers tracking insurance sales through banks, the central issue is the way this particular policy was sold. The regulator’s findings concern the sales process and its disclosure shortcomings, rather than just the fact that a policy was issued.