Summary of this article
Directors & Officers Liability Insurance Claims Trends: India’s directors and senior executives are facing a tougher environment, with liability risks climbing sharply. Marsh India’s latest report shows claims under Directors & Officers Liability Insurance has jumped 32 per cent in FY24–25, extending a pattern of rising disputes and investigations over the past four years. The report highlights that in India’s evolving corporate environment, the personal liability of directors and officers is no longer a distant risk
The directors and senior professionals in India’s corporate forms are now facing a tough environment with boardrooms under sharper scrutiny than ever before. A new report by March India, titled Directors & Officers Liability Insurance Claims Trends Report 2025, notes that the claims under this category of insurance have jumped by 32 per cent in the financial year 2024-25.
This can indicate rising disputes and investigations at top boardrooms over the past four years.
Which sectors are affected mainly?
This trend is not a uniform phenomenon, with some key industries putting in more claims than others. For instance, the banking and financial services sector has been hit the hardest and accounts for more than half of D&P claims over the last four years.
Many of these claims come from disputes linked to non-performing assets and the subsequent regulatory action that often follows because of the same. However, such pressures are not confined to banking, since the report notes that claims have been rising steadily in other key industries as well, namely, manufacturing, pharmaceuticals, IT, and FMCG.
In these sectors, the directors get pulled into cases that involve fiduciary lapses, compliance breaches, and employment-related disputes.
The financial burden of defending these claims is also rising. A March report notes that defence costs typically fall between USD 50,000 and 250,000, while overall claim values can reach USD 350,000.
Regulatory agencies (from Sebi and the Registrar of Companies to the Competition Commission of India, the Enforcement Directorate, and the Economic Offences Wing, etc.) have all become more active in naming directors personally in proceedings.
“The surge in D&O claims in India reflects the rising accountability pressures on corporate leadership,” says Sanjay Kedia, CEO of Marsh McLennan India and Marsh India, adding that mounting defence costs can weigh heavily on both individuals and organisations.
The report further focuses on the need to strengthen governance and provide adequate insurance protection to help boards withstand these growing pressures.
The claims trend report also highlights another dimension of these risks: the growing ‘use of artificial intelligence in corporate decision-making’. It notes that misrepresenting AI capabilities, or “AI washing,” is already leading to litigation overseas, and Indian companies may face similar challenges soon.
Issues such as algorithmic bias, data privacy breaches, and cybersecurity oversight failures are emerging areas where directors may be held liable.
According to Anup Dhingra, managing director, FINPRO IMEA, Marsh, “Regulators are watching corporate governance more closely than ever, and even leaders acting in good faith are finding themselves caught in complex proceedings.”
The report highlights a reality many corporate leaders already feel: personal accountability is tightening, and the cost of being unprepared is rising quickly.
