Covid-19 brings insurance policies for directors back into mainstream

Enlightened buyers, particularly those with complex global exposures to litigious markets, are waking up and demanding sophisticated covers for their specific needs.

Why, how, and to what extent AI could enter the decision-making boardroom?
Premium

While it is still early days, some independent directors and professional advisors have begun to assert what they will do and what they will not, and they want to have that preferably in black and white.

Praveen Gupta
An insurance offering that almost became a laggard is getting back into the mainstream, thanks to  Covid-19. Despite the growing frequency and severity of claims, many intermediaries stopped selling the Directors and Officers (D&O) Liability insurance because the product became very commoditised in the recent past, and the servicing demands attached to it were high.

Starting from the Bhopal Gas tragedy of 1984, the Indian insurance industry began to realise the need for domestic expertise in liability classes. Despite a D&O product becoming available by the late 1990s, Satyam Computers was a wake-up call. While overseas shareholders could as a class bring action and seek remedy from Satyam, domestic shareholders were left high and dry.

Ironically, the Companies Act 2013

Also Read

Corporate India seeks to barricade brass from frauds, bankruptcy concerns

Does a standard health insurance policy cover coronavirus? Expert answers

BS Insurance Round Table: Sandbox opens up avenues for bundling services

Covid-19 crisis: Life insurers look to hedge against policy surrenders

BS insurance roundtable: Focus must be on underwriting profit, say experts

Can't deny health claims for policies beyond 8 years, says Irdai

Buy add-on covers to protect against damage due to natural calamities

Tips to protecting your home and hearth against natural calamities

Life insurers note 25% drop in new business premiums in May due to Covid-19

Opting for EMI on health insurance premiums? You may end up paying more

First Published: Jun 20 2020 | 11:21 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com