New Delhi, Dec 6 (): Insurance companies are thanking Phanesh Murthy and Tejpal as India Inc. are rushing to take insurance cover that would include the legal expenses over employee suits of sexual harassments.
However, there is no policy for covering politicians and four ministers. The legal fees in sexual harassment cases can go up to Rs 5 crore. The need for taking cover is coming from independent directors on the boards of companies as more women employees are coming forward to press charges on their employers and directors on sexual harassment to gender discrimination.
Earlier, only Indian companies that had a presence in the US took such insurance covers. Insurance companies say many companies are now feeling that it’s better to take added cover for sexual harassment, which comes as an additional cover in the directors’ and officers’ liability insurance policy.
Indian companies have the option of taking employment practices liability insurance cover which takes care of all wrongful acts related to sexual harassment. Insurance companies say there is more awareness among global top-rated Indian companies.
If the company director is convicted, then the insurance company does not pay any money and recovers the case charges from the convict.
In the sexual harassment case of Murthy, the insurance company agreed to pay out of court settlement as the case if prolonged could see final compensation and legal fees on a higher side.
If the insurer is pronounced not guilty, insurance companies pay the legal fees. The director’s insurance policy application has to be signed by a CEO to show that the management is in the know about the policy.
The sexual harassment issue that has hit the headlines and in the case of Justice Ganguly had prompted Farooq Abdullah the Union Minister to say that he is scared of women staff for which social media hammered him.