Janashakthi Insurance, one of the few insurers specialised in Sri Lanka for Directors' and Officers' (D&O) Liability Insurance, recently carried out a workshop in association with Howden Insurance Brokers, for their underwriters and top sales professionls to enable them to keep abreast with the latest developments taking place globally in D&O Insurance.
Janashakthi Directors’ and Officers’ Liability Insurance policy financially safeguards Directors and other company officials against the legal liabilities that may arise against them under the Companies Act No. 7 of 2007, the insurance company said.
General Manager Sales and Marketing at Janashakthi Insurance PLC Ravi Liyanage said, “Not only globally but in Sri Lanka too the trend of claims filed against corporate executives exposing them to potential personal liabilities for violations of laws and regulations has shown a marked increase, especially with the collapse of some major financial institutions recently.”
Some well known business leaders and top corporate executives have lost virtually everything they had earned during their life time. “Government regulatory bodies, depositors, shareholders/investors, employees, and consumer groups are more aggressively asserting their perceived rights to influence corporate decisions and business strategies. Business leaders are thus confronted with various risks such as hazards associated with mergers, acquisitions, public offerings, day-to-day operations. The Companies Act places a greater accountability on Company Directors and Officers for their decisions and never before have they faced a greater likelihood of being sued because of their decisions,” Janashakthi said.