Rising D&O Claims in India Put Corporate Leaders Under Heightened Scrutiny: Marsh Report

India’s corporate landscape is undergoing rapid change, with directors and officers increasingly facing personal liability risks. Marsh India has released findings from its Directors & Officers (D&O) Liability Insurance Claims Trends Report 2025, which reveals sharp increases in claim notifications, escalating defence costs, and intensifying regulatory actions, underscoring the urgent need for stronger governance and comprehensive D&O coverage.

The report highlights a sharp rise in Directors & Officers (D&O) claim notifications in India, which grew by 32% in 2024–25 compared to the previous year, with sectors such as BFSI, pharma, IT, FMCG, and manufacturing being the most impacted. Notably, the BFSI sector accounts for over half of all D&O claims in the past four years, driven largely by borrower disputes over non-performing assets (NPAs) and subsequent regulatory investigations against bank officials. 

The findings also show that the financial implications are significant, with defence costs for D&O claims ranging from USD 50,000 to 250,000 and overall claim values typically between USD 10,000 and 350,000. Adding to the pressure, regulatory scrutiny continues to intensify, with agencies such as SEBI, the Registrar of Companies (RoC), the Competition Commission of India (CCI), the Enforcement Directorate, and the Economic Offences Wing increasingly naming directors and officers in high-profile cases. 

Commenting on the report, Sanjay Kedia, Chief Executive Officer, Marsh McLennan India President & CEO, Marsh India, said, “The surge in D&O claims in India reflects the rising accountability pressures on corporate leadership. Directors and officers are not only facing increased regulatory scrutiny but also mounting defence costs that can severely impact both individuals and organizations. As risks evolve, Indian companies need to focus on proper coverage and adequate insurance limits and adopt robust governance practices to safeguard leadership and build stakeholder trust”. 

Anup Dhingra, Managing Director, FINPRO IMEA (India, Middle East, Africa), Marsh, added, “In India, a steady increase in investigations by SEBI, Registrar of Companies, Competition Commission of India, Enforcement Directorate, and the Economic Offences Wing showcases the rising compliance and accountability pressures on directors and officers. Regulators are scrutinizing corporate governance more closely than ever before, and even well-intentioned leaders are finding themselves drawn into complex proceedings. This trend highlights the urgent need for boards to strengthen governance frameworks, enhance transparency, and ensure they are protected through comprehensive D&O coverage”.