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.
"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 in the notice seen by Reuters, adding the move was part of a plan to "garner more business and market share."
An Aviva spokesperson told Reuters: "We do not comment on speculation or ongoing legal matters,” while a source said the firm intends to rebut the notice's allegations but has not yet responded.
