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Sri Lanka Allianz unit offers directors and officers liability insurance

May 15, 2008 (LBO) - Allianz Insurance Lanka has launched a business unit to provide directors and officers (D&O) liability insurance to Sri Lanka's private and public corporates. The insured are indemnified for defense costs and any legal claims, according to a statement by the company, a fully owned subsidiary of Munich headquartered conglomerate Allianz.

"Directors and officers . . . face increasing exposure to personal liability, which directly affects their professional reputation and personal assets," the head of the new unit, Dilani De Silva, was quoted as saying in the statement.

"Personal liability exposure for directors of public companies is greater than ever in the light of the recently enacted legislation."

D & O liability insurance is becoming increasingly important for Sri Lankan companies now because of the new company law which came into effect last year.

It clearly outlines the duties and responsibilities of directors or officers and also sets out the repercussions of breaching such duties, the statement said.

The Directors and Officers Liability Insurance provides financial protection to the directors and officers of a company, a

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