90-year-old 'mis-sold' life insurance policy of Rs 2 lakh pa, to mature in 2124. Canara Bank responds

The family alleges that Venkatachalam V Iyer trusted his bank manager, and he 'misused' it 'exploiting decades of trust'. (AI-generated image)

A 90-year-old man in Maharashtra's Nagpur was allegedly mis-sold a life insurance policy with an annual premium of Rs 2 lakh by a Canara Bank branch manager, raising fresh questions about mis-selling, ethical lapses and the protection of senior citizens in bank-led insurance sales.

The allegation was made public by X user Saketh R, who said the elderly man, identified as Venkatachalam V Iyer, is his wife’s grandfather and has been banking with the same Canara Bank branch for decades. The policy was finalised last February, and the bank had already deducted Rs 2 lakh from Iyer's savings account. The incident came to light after he received an alert from the bank regarding his upcoming premium, panicked and alerted his family.

According to Saketh, Iyer trusted the branch manager and "that trust was misused". "Because of his age and lack of financial awareness and because he trusted the manager, he agreed without really understanding what he was buying," Saketh said.

Interestingly, after his post went viral, and hours after this report was published, Saketh shared an update: the regional head and the branch manager visited Iyer on Sunday and helped resolve the issue promptly. "They assured us that the amount will be refunded within a week," he added, thanking netizens for their support.

‘Urgent’ and ‘very important’: How the policy was sold

Although the matter has been resolved, the manner in which the elderly man was made to buy the policy has sparked a discussion on social media. In his initial post, Saketh said the insurance policy was sold to his grandfather-in-law as something “urgent” and “very important,” creating pressure on Iyer to agree.

“At the age of 90, the manager sold him a life insurance policy with a premium of Rs 2 lakh per year,” Saketh wrote. Over two years, Rs 2 lakh was deducted annually from the account, taking the total premium paid to Rs 4 lakh — a significant portion of Iyer's life savings.

Policy allegedly structured to bypass age limits

Saketh alleged that the transaction was “cleverly done” to bypass age restrictions typically applicable to life insurance products.

He also claimed that the bank manager had earlier advised the elderly man to open a joint account with his daughter, citing his advanced age. The life insurance policy was later issued with the daughter listed as the “life assured,” while the 90-year-old remained the primary account holder whose funds were used to pay the premiums.

“He is too old to even write. They have filled the document themselves and taken the sign from him as he is the primary holder,” Saketh said. "This appears to have been done only to meet sales targets, with no concern for an elderly customer’s financial well-being. Instead of protecting a senior citizen, decades of trust were exploited, causing him unnecessary financial stress in his final years."

In his post, he had also shared details of the life insurance policy which stated that it would mature in 2124 -- a fact that several X users were shocked to notice.

Social media users flag possible violation of entry-age norms

Several X users said the case appeared to be a clear instance of mis-selling, particularly given the customer’s age.

One user pointed out that the maximum entry age for the insurance plan in question is 80 years, sharing a screenshot from Policybazaar to support the claim. “How can it be sold to a 90-year-old?” the user asked, adding that this could significantly strengthen the case for a refund, potentially with penalties.

Another user advised Saketh to file a formal written complaint with both the bank and the insurance company, and to escalate the matter to the RBI and the Insurance Regulatory and Development Authority of India (IRDAI) if it is not resolved within 30 days.

“Mis-selling to a 90-year-old is taken very seriously and many people do get refunds once it’s formally escalated,” the user wrote.

A third X user wrote: "There is no doubt that the bank manager is a predator, and this is classic mis‑selling of insurance to a vulnerable senior citizen."

Canara Bank responds on X

Canara Bank responded to Saketh’s post with a brief message, saying: “Hi Saketh, we regret the inconvenience caused to you. We will forward it to the concerned team. Also, we would request you to refrain from sharing your personal information openly on the public platform.”

The bank did not address the specific allegations of mis-selling or age-inappropriate insurance sales in its public response.