Page 46 - The Insurance Times December 2024

Aviva India Tax Evasion Case Implications:
This case highlights the regulatory scrutiny faced by insur-
Court: Not Applicable (Regulatory Investigation) ers regarding compliance with tax laws and commission
regulations. It serves as a cautionary tale for insurance com-
Summary: panies to adhere strictly to legal and regulatory frameworks
In August 2024, the Directorate General of GST Intelligence to avoid substantial penalties and reputational damage.
accused Aviva India of using fake invoices and cash
These cases collectively highlight the evolving complexities
payments to evade taxes and circumvent commission caps in insurance law, emphasizing the importance of clear policy
between 2017 and 2023. The investigation revealed that language, adherence to procedural protocols, and the im-
Aviva allegedly funneled approximately $26 million to enti- pact of judicial interpretations on industry practices. Stay-
ties posing as service providers to surpass regulatory com- ing informed about such developments is crucial for insur-
mission limits, resulting in an estimated tax evasion of $5.2 ers, policyholders, and legal practitioners navigating the
million. dynamic landscape of insurance law.

6 big states accounted for 55% of road fatalities in '23

Only six large states - Uttar Pradesh, Tamil Nadu, Experts said govt authorities need to come out of the
Maharashtra, Karnataka, Madhya Pradesh and Rajasthan - mindset that big states would have higher share of fatali-
accounted for nearly 55 per cent of the 1,73,000 road ties as they have more roads and vehicles as well, to deal
deaths in the country last year. Among them, Rajasthan saw with this "man-made crisis". Naresh Raghavan, an
the sharpest increase in fatalities, with an almost 6 per cent road safety expert and author of driving manuals, said there
rise compared to 2022, according to data shared by state is a greater need to focus on driver education along with
govts with Centre. enforcement of laws. "Remember, only five or six rules can
The six states registered 95,246 road deaths in 2023 com- be policed or enforced. For the remaining 45 basic road rules
pared to 91,936 in the preceding year, data shows. have to be taught to people/drivers," he added.
Raising concerns over the rising number of road deaths,
Though the reports on road crashes and deaths are yet to
be published by road transport ministry and National Crime Union road transport minister Nitin Gadkari on Saturday
Records Bureau (NCRB) under the home ministry, the trend urged officials and engineers to investigate all fatal crashes
shows how the problem is getting bigger, despite India's to find reasons and take corrective measures.
global commitment to reduce these fatalities by half in the "We lost 1.73 lakh lives in road accidents last year and re-
next six years. member nearly 60% of people killed every year are in the
age group of 18-34 years. The socio-economic cost of road
"Focussed efforts, proper investigation into accidents and accidents is around 3% of our GDP. Please take it seriously.
designing interventions can bring down road deaths. That's Deal with road safety issues with sensitivity, investigate
what I had realised in my stint while dealing with Delhi's accidents, fix black spots and address issues. We have never
traffic issues. Most of the crashes and fatalities are prevent- lost so many people even in wars," he had said while ad-
able," said former IPS officer Satyendra Garg, who was joint dressing a conference on emerging trends and technologies
commissioner (traffic) in Delhi. in road and bridge construction.

Fintech Unicorn Cred Expands into Insurance Distribution

Cred, a leading fintech platform, has forayed into insurance distribution with a focus on motor insurance. Leveraging
its vehicle management platform, Cred Garage, the company offers insurance products with additional discounts for
users with good credit scores. Cred Garage, launched in September last year, allows users to track vehicle spends,
pending challans, and renewal dates for insurance and pollution certificates. With 7 million registered vehicles and
4.4 million users, the platform has become a key tool for vehicle management. Akshay Aedula, Head of Product and
Growth at Cred, highlighted the company's collaboration with Zurich Kotak General Insurance, Go Digit General
Insurance, and ICICI Lombard. Cred, which holds a corporate agency license from IRDAI, aims to expand partner-
ships with more insurers, offering enhanced options to its growing user base.

42 December 2024 The Insurance Times