Canara HSBC Life Insurance Review

Founded in 2008, Canara HSBC Life Insurance leverages the trust of Canara Bank, HSBC’s expertise, and Punjab National Bank’s reach. With 100+ branches and a wide bancassurance network, it has protected 8.86 million lives. In FY 2023-24, it secured ₹2,901 crore in new business with a strong 2.5 solvency ratio, staying committed to its “Promises Ka Partner” philosophy.

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Overview

Overview of Canara HSBC Life Insurance

For years, Canara HSBC Life Insurance has built its reputation as a trusted insurer in India’s growing life insurance market, offering protection plans tailored to diverse customer segments. Its flagship term products—like iSelect Smart360 Term Plan and Saral Jeevan Bima—focus on affordable pure protection, ensuring that if the insured passes away, their family receives a much-needed financial payout to cover expenses and secure their future.

In addition to these, Canara HSBC Life Insurance offers a broad portfolio of savings, investment, and retirement products, helping policyholders plan for long-term goals such as child education, marriage, or post-retirement income. However, some of its market-linked offerings come with inherent investment risks tied to market performance.

A key strength of the company lies in its bancassurance model, leveraging partnerships with major banks like Canara Bank, HSBC, and Punjab National Bank to reach customers across India. With access to thousands of bank branches nationwide, Canara HSBC ensures seamless policy servicing, making it easier for customers—especially in semi-urban and rural areas—to buy, renew, and claim insurance without hassles.

Canara HSBC Life Insurance Customer Reviews

Claim Settlement Ratio of Canara HSBC Life Insurer

One of the most crucial factors when choosing a life insurance provider is the Claim Settlement Ratio (CSR), which indicates the percentage of claims the insurer successfully pays out in a given year. The CSR is calculated as:

(Total number of claims settled by the insurer in a year / Total number of claims received in that year) × 100

A high CSR reflects an insurer’s reliability, especially when dealing with the substantial sums associated with life insurance. A CSR above 97% is generally considered strong, and reviewing performance over the last few years against the industry average can provide useful insights.

Here’s how Canara HSBC Life Insurance performs:

Insight: Canara HSBC Life Insurance has maintained an impressive average CSR of 98.95% over the past three years, outperforming the industry average of 98.13%. This consistently high claim settlement track record reflects the company’s commitment to honoring claims. While customers should always review policy conditions and documentation requirements, these numbers suggest that Canara HSBC Life stands strong in delivering on its promises when it matters most.

Amount Settlement Ratio of Canara HSBC Life Insurer

While the Claim Settlement Ratio (CSR) indicates the number of claims an insurer settles, it doesn’t reflect the actual value of the claims being paid out. This is where the Amount Settlement Ratio (ASR) comes into play, as it helps assess whether an insurer is honoring the value of both small and large claims fairly. The ASR is calculated as:

(Total amount of claims settled / Total amount of claims filed) × 100

A high ASR, typically above 90%, signals that the insurer is financially robust and committed to settling claims equitably, irrespective of size. It’s a key metric to understand whether an insurer is truly following through on its financial obligations.

Here’s how Canara HSBC Life Insurance has performed in terms of ASR over the past three years:

Insight: Canara HSBC Life Insurance has maintained an impressive average ASR of 96.80% over the past three years, significantly outperforming the industry average of 94.17%. This consistently high ASR shows that the insurer not only processes claims in large numbers but also pays out claims fairly in terms of actual claim amounts, indicating financial stability and brand sustainability. Notably, the sharp increase to 97.88% in 2023–2024 highlights further improvement in payout consistency. For customers, this reflects a reassuring commitment to honoring claims both in number and value, making Canara HSBC Life a reliable choice for those seeking financial protection without surprises in payout amounts.

Complaints Volume of Canara HSBC Life Insurance

Beyond just claims and payouts, it’s smart to check how often customers actually raise their voice against an insurer — that’s where complaint volume comes in. Measured as the number of complaints per 10,000 claims, this figure gives you a peek into the insurer’s service quality, from how smoothly claims are handled to how responsive they are when problems crop up.

Here’s how Canara HSBC Life Insurance has performed in terms of complaint volume over the past three years:

Insight: Canara HSBC Life Insurance’s complaint volume has decreased substantially, from 30.0 complaints per 10,000 claims in FY 2021-2022 to 14.0 in FY 2023-2024. This is a positive trend, showcasing improvements in customer service, responsiveness, and smoother claim processes. The average complaint volume of 23.7 remains higher than the industry median of 15, but the drop over the years indicates that the company is actively working to address customer concerns. This improvement could signal a stronger commitment to refining customer interactions, yet it’s important to monitor if this downward trend continues in the future to confirm sustained progress in customer satisfaction.

Riders offered by Canara HSBC Life Insurance Plans

Canara HSBC Term Life Insurance Plans

1) Canara HSBC Life Young Term Plan

Canara HSBC Life Young Term Plan is a feature-packed term insurance policy designed especially for young individuals looking for long-term financial protection at affordable premiums. It offers flexible coverage options, multiple premium payment terms, optional riders, and attractive discounts, making it an excellent choice for young earners and families aiming for future security.

Key Highlights of Canara HSBC Life Young Term Plan:

• The minimum entry age is 18 years, and the maximum entry age is 65 years.
• The maximum maturity age is 99 years.
• The plan offers two coverage options: Level Cover, where the sum assured remains fixed throughout the policy term, and Increasing Cover, where the sum assured increases by 10% per year, up to a maximum rise of 100% after 10 years.
• The minimum sum assured is ₹25 lakh, and the maximum sum assured has no limit, subject to underwriting.
• The policy term ranges from 5 years to 62 years.
• The plan variants include:
  • Life Secure — Base cover
  • Life Secure with Return of Premium — Base cover + return of total premiums paid on survival
• The premium paying term (PPT) includes regular pay (the same as the policy term) and limited pay options of 5, 10, 15, 20, 25 years, or pay until age 60.
• Premium payment frequency options include annual, half-yearly, quarterly, and monthly.
• The plan offers optional riders, such as Accidental Death Benefit, Accidental Total and Permanent Disability, and Child Support Benefit, to enhance protection and an option to get your spouse covered in the same plan.
• Block Your Premium (BYP) Benefit lets the Life Assured or Working Spouse lock in their premium rate for the first 5 policy years. During this period, they can increase the death benefit by up to 100% (as chosen) without medical checks, regardless of age.
• Discounts include a high sum assured discount, a female life discount, and an online purchase discount.

2) Canara HSBC Life iSelect Smart360 Term Plan

Canara HSBC iSelect Smart360 Term Plan is a highly customizable term insurance product that offers flexible life cover up to age 99, with options like monthly income, increasing cover, and return of premium. The plan includes built-in riders for enhanced protection and caters to evolving life stage needs, making it an attractive option for long-term security seekers.

Key Highlights of Canara HSBC iSelect Smart360 Term Plan:

• The minimum entry age is 18 years, while the maximum entry age is 65 years; if you opt for premium payment up to age 60, the maximum entry age reduces to 50 years.
• The maximum maturity age is 99 years, with the policy terminating on the anniversary following the 99th birthday; for optional covers like Accidental Death Benefit (ADB) or Accidental Total & Permanent Disability (ATPD), the maximum maturity age is 75 years.
• The minimum policy term is calculated as 65 years minus age at entry, while the maximum policy term can go up to 81 years (99 minus entry age).
• Premiums can be paid under regular pay or limited pay options, with limited pay terms of 10, 15, 20, 25 years or up to age 60 (minimum PPT of 10 years).
• Premium payment frequencies include yearly, half-yearly, quarterly, and monthly options.
• The minimum sum assured is ₹25 lakh, while the maximum sum assured has no upper cap, subject to underwriting approval.
• The plan offers multiple coverage options, including Level Cover (fixed sum assured) and Increasing Cover (10% simple annual increase, capped at 100% of base sum assured over 10 years).
• You can choose from three plan variants:
  • Life Secure
  • Life Secure with Income (monthly survival income from age 60, at 0.1% of sum assured, until policy ends or death)
  • Life Secure with Return of Premium (ROP)
• The death benefit payout can be customized as a lump sum, monthly income, or a mix of both (25/75%, 50/50%, 75/25%); monthly income can be level or increase at 5% or 10% per year over 60 months.
• Optional in-built covers include Accidental Death Benefit, Accidental Total and Permanent Disability (ATPD) with premium protection, ATPD with premium protection plus lump sum, Terminal Illness Benefit, Child Care Benefit, and Block Your Premium feature for locking premiums and increasing coverage later without fresh underwriting.
• Spouse coverage is available for non-working spouses, with a maximum sum assured of ₹50 lakh for non-working spouses.
• The plan offers a Special Exit Value, allowing the insured to receive back the total premiums paid (excluding taxes and rider charges) under certain conditions.
• Women and non-smokers may benefit from preferential premium rates, and tax benefits under the Old Tax Regime are available under Section 80C and Section 10(10D) of the Income Tax Act.

3) Canara HSBC Saral Jeevan Bima 

Saral Jeevan Bima is a simple and affordable  term insurance plan designed to provide life cover for financial protection. The plan is designed for easy purchase and aims to ensure financial security for your family in case of an unfortunate event.

• The plan offers a minimum entry age of 18 years and a maximum entry age of 65 years (extended up to 70 years for single premium payments).
• You can choose a sum assured between ₹5 lakh and ₹25 lakh based on your coverage needs.
• The policy term can range from 5 to 40 years, allowing flexibility in how long you stay covered.
• The plan provides multiple premium payment options: single premium, limited pay (5 or 10 years), or regular pay (throughout the policy term).
• You can pay premiums annually, half-yearly, or monthly (monthly payments are allowed only via NACH/ECS).
• There are no riders available with this plan, keeping it straightforward and uncomplicated.
• Discounts are offered: female lives get a 3-year age setback on premium rates, and higher sum assured amounts qualify for additional discounts.

Should You Opt For Canara HSBC Life Insurance Plans?

If you’re considering Canara HSBC Life Insurance for your life insurance needs, here’s a quick look at its key strengths and weaknesses to help you decide.

Pros of Canara HSBC Life Insurance

• High Claim Settlement Ratio (CSR) — Canara HSBC Life Insurance boasts an impressive average CSR of 98.1% (FY 21-22 to FY 23-24), indicating that the insurer is highly reliable when it comes to settling claims, which is vital for ensuring financial security for beneficiaries.
• High Amount Settlement Ratio (ASR) — With an average ASR of 96.8% (FY 21-22 to FY 23-24), the insurer demonstrates its capability to settle both small and large claims fairly, reflecting strong financial stability.

Cons of Canara HSBC Life Insurance

• High Complaint Volume (CV) — Canara HSBC Life Insurance has a higher-than-average complaint volume (23.7 per 10,000 claims), suggesting that there may be room for improvement in customer service. This could point to slower claim processes or dissatisfaction with certain aspects of the policy servicing.
• No Critical Illness Rider — Unlike some competitors, Canara HSBC Life Insurance does not offer a critical illness rider, which could limit options for policyholders looking for additional protection for major health conditions.
• Low Annual Business Volume and Claims Paid Amount: Despite 15+ years in operation, the insurer’s annual business volume and claims paid remain lower than the industry average, with a smaller market share compared to reputed competitors

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Conclusion

In conclusion, Canara HSBC Life Insurance has proven to be a reliable player in the Indian insurance market, with its robust claim settlement ratio of 99.31% in FY 2023-24, showcasing its commitment to customer satisfaction. Its diverse product range, supported by an extensive bancassurance network, ensures accessibility for a wide audience. However, while customer complaints have been decreasing, ongoing improvements in service quality are essential. The absence of a critical illness rider in some plans may also be a drawback for some customers, but overall, Canara HSBC Life Insurance continues to offer strong, reliable coverage.