In the wake of various corporate scams and initiation of legal proceedings it becomes very important for the directors to understand their duties and liabilities as a director in Indian regulatory framework.
Directors and officers are bound by duty towards various stakeholders — shareholders, employees, creditors, customers, competitors, government and other regulatory bodies.
Any breach or non-performance in the duties can result in claims against them by reason of any wrongful act, actual or alleged, in their respective capacities.
D&O liability insurance is intended to provide broad and sufficient coverage for policyholders and their officers. However, D&O policies do not cover all conduct and many contain a number of notable exclusions.
The general exclusions under the policy include:
- Claims normally covered under other or prior Insurance
- Personal Gain
- Insured vs. Insured
- Dishonest, Criminal, Fraudulent conduct.
- Fines, penalties and Punitive Damages
- Defamation, libel and Slander claims
- Wilful or Intentional Wrongdoings.
PlanCover.com an insurance broker licensed by IRDAI has been supporting technology startups, small and medium businesses, not for profit companies and large companies with tailor made D&O liability insurances. You may reach out to them for getting your D&O liability insurance policy structured.
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