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Insurers in India unwilling to cover tax risks in M&A deals

Modi fails to allay investor concerns over a law that allows authorities to make retrospective tax claims

Published Tue, Aug 11, 2015 · 09:50 PM
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Mumbai

PRIME Minister Narendra Modi needs to offer more than just his best intentions to clean up India's whimsical tax regime to help convince insurers.

Companies from Allianz SE to American International Group Inc are avoiding offering tax-liability coverage in India's cross-border mergers and acquisitions market because of a relatively high risk of disputes. None of the 21 general insurers operating in the country provides cover for tax risks arising from M&A transactions.

"No one is comfortable offering that product in geographies without a stable tax…

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