The Hindu Business Line : HDFC Chubb unveils D&O liability cover for mid-size cos

HDFC Chubb General Insurance Company has launched `Forefront Portfolio', a Directors and Officers' (D&O) liability insurance package for mid-size companies.

The product offers D&O insurance and an option to choose from five other covers against employee theft, entity employment practices, trustee liability, outside directorship liability (for organisations that are not traded publicly and do not have exposures in the US), and Internet liability.

The D&O policy offers coverage of Rs 10 crore while in the case of each of the other policies the cover is worth Rs 5 crore.

Liability insurance currently accounts for 10-12 per cent of the company's business portfolio and raked in premium of around Rs 7 crore in 2004-05.

Mr Srirang V. Samant, MD and CEO, HDFC Chubb, said that with increased importance towards corporate governance and globalisation, small and medium companies are increasingly exposed towards stringent Indian regulatory environment, employment disputes and fiduciary duties towards shareholders.

According to the company, mid-size companies would typically be those with turnover less than Rs 500 crore and no or minimal exposure in the US. Such companies should also not be a financial institution or start-up.

Mr Samant said that D&O insurance as well as entity employment practices insurance received the maximum number of claims in the US. In the case of the latter, suits had been filed against a company for wrongful termination or sexual harassment.

HDFC Chubb, which had refrained from insuring properties in the major metros, has retraced its move since April 2005.