UK insurance giant Aviva has been accused of breaching Indian regulations capping commissions to sales agents by allegedly concocting a system of fake invoices and secret cash payments.
According to a report by Reuters, regulators found that Aviva's Indian operation paid as much as £20 million between 2017 and 2023 to entities who appeared to supply marketing and training services but who were actually a front for channeling funds to Aviva's agents, with the firm using the invoices to unfairly claim tax credits. The allegations came in a notice sent by officials to Aviva which has not been made public, as part of a wider probe into major Indian insurers into the potential evasion of unpaid taxes.
