New Delhi, Jan. 22 -- Insurers may not readily offer tax liability insurance for merger and acquisition (M&A) deals and will subject them to stricter scrutiny given the risks of retrospective taxes, consulting and law firms cautioned, days after the Supreme Court ruled that Tiger Global must pay capital gains tax on its Flipkart share sale years ago.

Even if insurers provide cover for such deals, they are likely to charge higher premiums and tighten terms to account for potential tax and legal risks, they added.

"The entire availability of insurance to protect a seller's tax liability in such situations may undergo a fundamental change. We will now have to wait and watch how willing insurance companies are to underwrite treaty-related t...