- Aviva’s India business allegedly used fake invoices and clandestine cash payments to channel around $26 million to insurance agents between 2017 and 2023.
- The investigation is part of a broader probe into over a dozen Indian insurers accused of evading $610 million in taxes, interest, and penalties.
British insurer Aviva is under scrutiny by Indian tax authorities for allegedly breaching local regulations on sales agent commissions. The Directorate General of GST Intelligence has accused Aviva's India operations of channeling around $26 million through fake invoices and clandestine cash payments between 2017 and 2023, according to a tax notice obtained by Reuters.
The notice alleges that the funds, ostensibly paid to entities for marketing and training services, were instead used to bypass commission caps and pay insurance agents.
"Aviva and its officials have indulged in a deep-rooted conspiracy and used the modus of fake invoices (without receipt of services) to pass on certain money to ... insurance distributors of Aviva," investigators wrote.
This investigation is part of a broader probe into over a dozen Indian insurers suspected of evading $610 million in taxes, interest, and penalties. Aviva’s alleged actions allowed the company to evade approximately $5.2 million in taxes.
A spokesperson for Aviva’s UK operations declined to comment on the ongoing investigation, stating, "We do not comment on speculation or ongoing legal matters."
The tax agency's findings, supported by emails and WhatsApp messages from Aviva executives, indicate that senior management, including then-CEO Trevor Bull, was aware of the scheme. The company now faces potential penalties of around $11 million, nearly equal to its 2023 profit from Indian operations.
The allegations place Aviva under significant pressure as it seeks to expand its market share in India amidst fierce competition from domestic insurers like LIC.
Edited by Harshajit Sarmah
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