Centenarian Policy Sparks Banking Outrage

A startling case of alleged insurance mis-selling has emerged from Nagpur in the Indian state of Maharashtra, where a 90-year-old man was reportedly sold a life insurance policy with a maturity date set a century later — in the year 2124. The annual premium? ₹200,000. The episode has ignited public anger and renewed scrutiny of sales practices within India’s banking and insurance sectors.

According to a post shared on the social media platform X (formerly Twitter) by a chartered accountant identified as Saket, the policy was sold in 2024 by a branch manager of a state-owned bank. The elderly customer, described as a long-standing client of the branch, was allegedly persuaded to purchase the plan on the grounds that it was “urgently necessary”. Given his advanced age and frailty, he was reportedly unable to complete the documentation himself; bank staff are said to have filled out the forms on his behalf.

Over two years, ₹400,000 in premiums were deducted from his account. The matter came to light only when an alert for the third annual premium was issued this February. By then, the funds had already been drawn twice.

Key Details of the Case

Public reaction was swift. Social media users labelled the episode “predatory”, accusing the bank official of exploiting trust built over decades. Following the online uproar, senior officials from the bank reportedly visited the customer’s residence. The deducted premiums were refunded, apparently without prolonged procedural obstacles.

Yet the refund has done little to quell wider concerns.

India’s insurance regulator, the Insurance Regulatory and Development Authority of India (IRDAI), has repeatedly warned that mis-selling is not confined to isolated branches or institutions but represents a systemic challenge. In the financial year 2024–25 alone, the regulator reportedly received more than 250,000 complaints relating to mis-selling, nearly half of which concerned life insurance products. The number has shown a steady year-on-year increase.

Industry analysts note that draft supervisory guidelines proposed by the Reserve Bank of India (RBI) recommend stricter scrutiny for financial products sold to senior citizens. Proposals include automatic “red-flagging” of insurance policies sold to individuals over 60, mandatory multi-tier verification, and enhanced suitability assessments. However, critics argue that enforcement often lags behind policy intent.

In this case, questions remain unanswered. How did a policy with a 100-year term clear internal compliance checks? Were standard Know Your Customer (KYC) and suitability procedures properly followed? And would the matter have been resolved had social media not amplified the complaint?

For many observers, the incident underscores the darker side of aggressive sales targets in financial institutions. While one family’s funds have been restored, the episode serves as a reminder that vigilance — regulatory and public alike — remains essential in protecting vulnerable customers.