Quick Overview

Canara HSBC Life Insurance is a prominent Indian life insurer headquartered in Gurugram. Founded in 2008, it is a joint venture between Canara Bank (36.5%), HSBC Insurance (Asia Pacific) Holdings (25.5%), and Punjab National Bank (13%). The remaining 25% is held by other public shareholders and investors.  

Canara HSBC Life Insurance has demonstrated strong performance, with a CSR of 99.28%(FY 22-25) and an ASR of 96.8% (FY21-24). 

However, insurers like Axis Max Life and HDFC Life are often considered to have stronger operational capabilities, advanced digital ecosystems, and comprehensive built-in term plan features.

Canara HSBC Life Insurance recently made headlines following its October 2025 IPO and listing, drawing fresh investor attention to its improving claim settlement performance and strong bancassurance growth. 

But does “bank-backed” automatically mean better insurance? 

In this detailed review, we break down the key performance metrics, term plan offerings, pros and cons, and where Canara HSBC Life Insurance stands versus industry peers.

Book a call or chat with us on WhatsApp to speak with a Ditto advisor to find the right term insurance plan for your profile. 

Metrics of Canara HSBC Life Insurance

MetricsFY 22-23FY 23-24FY 24-25Pramerica's Average (FY 22-25)Industry Average (FY 22-25)
Claim Settlement Ratio (CSR)99.10%99.31%99.43%99.28%98.66% (Mean)
Amount Settlement Ratio (ASR)96.09%97.88%-96.8% (Avg FY21-24)FY 21-24: 94.07% (Mean)
Solvency Ratio2.5x2.1x2.1x2.23x2.04x (Median)
Complaint Volume (per 10,000 claims)27141217.6717.67 (Median)
Annual Business Volumes (in crores)₹3,716.6₹2,901₹3,122₹3,246₹3,411.73 (Median)
Amount Paid in Claims (in crores)₹222.4₹206.9₹257.9₹229.1₹195.05 (Median)

For the Amount Settlement Ratio (ASR) of the insurer, we have considered the average of FY 21-24, as the latest FY 24-25 metrics haven’t been released yet. 

Key Insights:

    • Canara HSBC’s claim settlement ratio is strong and above the industry average. However, some legacy/traditional insurers operate at slightly higher consistency. 
    • The insurer’s solvency ratio sits comfortably above IRDAI’s minimum requirement of 1.5, but it also shows a downward trend, which is something to watch out for. 
    • The complaint volume is at the industry median. However, when compared to some peers operating at similar or larger scales, the complaint levels appear to be slightly higher. 
    • The ASR is healthy and above industry average, which indicates a fair treatment of both high and low-value claims. 
    • Although the business volumes show slight volatility, the insurer has a steady presence in the market. 

Note: At Ditto, we use a 3-year average for key operational metrics to smooth out short-term volatility and avoid overreacting to one-off events, seasonality, or unusual market conditions.  

These metrics apply to the overall life insurance segment(term insurance, savings plans, ULIPs, and other products). While these metrics are not disclosed separately for term insurance, they remain indicative of insurer reliability.

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Does Bank Backing Mean Faster Claims?

Canara HSBC’s strong PSU (Public Sector Undertaking: Canara Bank) naturally increases buyer trust due to its established brand legacy, widespread physical branch presence, and the perception of government-linked safety. However, the PSU association does not automatically translate into faster claim settlements. 

Public sector institutions are often perceived to move more slowly in retail servicing, and even if claims are processed efficiently internally, the customer experience may not always match the trust perception created by the brand.

In reality, trust does not equal speed, and insurance claim settlement depends far more on underwriting quality, documentation accuracy, and operational efficiency than on bank backing alone.

Types of Plans Offered by Canara HSBC Life Insurance

Canara HSBC Life Insurance offers a diverse portfolio of plans:

    • Unit Linked Insurance Plans (ULIPs) such as Promise4Growth Plus and Wealth Edge.
    • Savings & income plans such as Guaranteed Future Plus. 
    • Child plans such as iSelect Guaranteed Future Plus.
    • Retirement plans such as the Guaranteed Pension Plan.

The insurer also offers term insurance plans, which we’ll discuss in more detail below.

Canara HSBC Life Insurance Term Plans

    • Young Term Plan
      The Young Term Plan is designed for individuals aged 18 to 60 years. The sum assured starts at ₹25 lakhs (₹15 lakhs under the Return of Premium option), with flexibility to choose between Level or Increasing cover. Policyholders can opt for Regular or Limited Pay premium options based on their income preferences.

      The plan includes several notable features, such as Life Stage Enhancement (which allows you to increase coverage during key milestones like marriage or childbirth) and a Special Exit Benefit under specific conditions. 

      It also offers multiple rider options, including Spouse Cover, Accidental Death Benefit, Disability Premium Protection, Terminal Illness benefit (available via rider), Child Care Benefit, and a unique Block Your Premium feature that allows you to lock the premium rate at inception and allow cover increases in the next 5 years. 
    • iSelect Smart360 Term Plan
      The iSelect Smart360 Term Plan is a customizable term insurance solution available for individuals aged 18 to 65 years, with coverage extending up to age 99. It provides flexible premium payment options, including Single Pay, Regular Pay, and Limited Pay (depending on the chosen variant). The sum assured starts at ₹25 lakhs, and policyholders can choose between Level or Increasing cover options.

      This plan offers similar term insurance riders to the Young Term Plan, along with enhanced customization flexibility.
    • Promise2Protect
      Promise2Protect is a relatively straightforward term insurance plan designed for individuals aged 18 to 60 years, offering coverage up to age 80. The sum assured starts from ₹25 lakhs, and policyholders can choose between Level and Increasing cover options, along with Regular or Limited Pay premium structures.

      Compared to the other two plans, Promise2Protect has a simpler structure with fewer customization layers. It still includes useful built-in features such as Life Stage Enhancement and Special Exit Benefit, making it a suitable option for those who prefer a basic, no-frills term insurance plan.

If you’d like to know more about the best term insurance plans in India, you can check out our comprehensive guide on the same. 

Canara HSBC Life Insurance Premium

For 25-year-old, non-smoking, healthy salaried individuals covered for a sum assured of ₹1 crore till the age of 60. 

ProfileYoung Term PlaniSelect Smart 360Promise2Protect
25, Male₹8,788₹8,943₹8,788
25, Female₹8,785₹7,898₹8,785

For 30-year-old, non-smoking, healthy salaried individuals covered for a sum assured of ₹2 crore till the age of 65.

ProfileYoung Term PlaniSelect Smart 360Promise2Protect
30, Male₹18,954₹22,006₹18,454
30, Female₹16,815₹19,520₹16,870

Pricing is competitive for base variants but increases significantly for ROP and spouse cover options. Moreover, premiums are indicative in nature and can change based on your age, medical history, and underwriting. 

Note: You can also check out the best term insurance plan for ₹2 crore in India here.

Branch-Sold vs Digitally Sold Term Plans

When buying a Canara HSBC term plan, the experience can differ depending on whether you purchase it through a bank branch or online. Bank branches may offer specific product variants that are not always visible on the website, and offline purchases can sometimes be up to ~5% more expensive due to distribution costs.

On the other hand, buying digitally typically allows for clearer comparisons, easier access to policy details, and more transparent pricing. From a claims perspective, however, the purchase channel, online or offline, does not change the insurer’s liability or obligation to settle claims. What does differ significantly is the level of advisory support you receive during and after purchase.

ProsCons
Strong PSU + global backingSolvency ratio trending downward
High CSRAverage complaint levels
Healthy ASRMissing features like instant claim payout on intimation, auto cover continuance, and health management services
Multiple customization optionsROP and spouse cover pricing is relatively higher
Unique features like Block Your PremiumNo strong in-built critical illness rider

How to Buy Canara HSBC Life Insurance Online

    1. Visit the official website.
    2. Select your preferred plan.
    3. Click “Check Premium”.
    4. Fill in personal, income, and health details.
    5. Submit.

Alternatively, you can fill in your contact details and request a callback from an agent. You can also buy from partnered agents and aggregator platforms. 

Canara HSBC Life Insurance Claim Settlement Process

Canara HSBC Life Insurance follows a similar claim settlement process to that of traditional insurers. For more details, refer to the attached infographic:

Canara HSBC Life Insurance Claim Settlement Process

Why Choose Ditto for Term Insurance?

At Ditto, we’ve assisted over 8,00,000 customers with choosing the right insurance policy. Why customers like Aaron below love us:

Canara HSBC Life Insurance
    • No-Spam & No Salesmen
    • Rated 4.9/5 on Google Reviews by 15,000+ happy customers
    • Backed by Zerodha
    • 100% Free Consultation

You can book a FREE consultation. Slots are running out, so make sure you book a call or chat on WhatsApp now!

Ditto's Take on Canara HSBC Life Insurance

Canara HSBC Life Insurance appeals to buyers who prefer purchasing through familiar banking channels and value brand comfort.

However, the advantage of “bank trust” is often limited to the point of sale. Branch staff may change roles, and relationship managers primarily focus on sales. At the time of a claim, families deal directly with the insurer’s backend team and not the person who sold the policy.

This is where independent advisory support makes a difference. Platforms like Ditto assist not just with choosing the right policy, but also guide families through documentation and follow-ups during claims.

Full Disclosure: Canara HSBC Life Insurance is not a partner insurer of Ditto. The information in the above article has been sourced from IRDAI reports, the insurer’s website, and publicly available data. 

If you’d like to know more about how we evaluate plans and insurers, you can check out Ditto’s Cut.

Frequently Asked Questions

Is Canara HSBC Life Insurance a Good Company?

Yes, Canara HSBC Life Insurance is a financially stable insurer with a strong claim settlement ratio (99%+ average) and above-industry ASR. However, “good” depends on what you value. If you’re looking for stronger in-built term features or advanced digital servicing, insurers like HDFC Life or Axis Max Life may offer better value.

What is the new name of Canara HSBC Life Insurance Company?

The company was previously known as Canara HSBC Oriental Bank of Commerce Life Insurance. After the merger of Oriental Bank of Commerce with Punjab National Bank, it was renamed to Canara HSBC Life Insurance Company Ltd. 

How do I check my HSBC life policy?

You can log in to the official customer portal by using your policy number to access details. You can also contact customer care or visit a Canara Bank branch. 

Should I buy Canara HSBC term insurance just because my bank recommends it?

Not necessarily. Bank recommendations are often distribution-driven. Always compare features, rider costs, claim settlement record, and long-term stability before making a decision. 

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