Kidnap Ransom & Extortion
Kidnap Ransom & Extortion Insurance
Kidnap and Extortion are very real and growing threats in today’s world, which can be easily felt by the alarming rise in numbers of Kidnap Incidents Worldwide.
On analyzing the number of incidents, worldwide it can be felt that soft targets forthese type of incidents are the employees / Senior officials of companies who have employees based or traveling overseas for business matters.
The Risk Managers of most renowned companies opt Kidnap, Ransom & Extortion Insurance to tackle these Risks – As the Risk associated have High Severity and Low Frequency i.e. These type of incidents are not common but once it happens than it have a shrill financial impact .
It is always advisable to have Insurance protection against this type of Risk whenever available. Moreover, the Insurance coverage is available at an affordable price.
India has been ranked second only to Mexico on a list of the world’s kidnapping hotspots-ahead of Pakistan, Iraq and Nigeria, published by Control Risks, a global risk consultancy specializing in political, integrity and security risk.
Insurers say this does not mean that neighboring countries like Afghanistan or Pakistan are safer than India, reported the Times of India.The rankings are based not on insured events but on actual cases reported. What the rankings indicate is that the number of complaints about kidnapping is higher in India. Although abductions in India may not be an organized business the way they are in some South American countries, there are many incidents that take place in the North and the East of the country.
The Provisional/ Indicative Premium for a Limit of Indemnity (SI) as mentioned against each with deductible/Excess as Nil are appended below:
SI/LOI (USD) Premium (USD)
USD $ 1 Million USD $ 7,200
USD $ 2 Million USD $ 10,000
USD $ 3 Million USD $ 12,000
USD $ 4 Million USD $ 13,500
USD $ 5 Million USD $ 14,500
USD $ 6 Million USD $ 16,000
Apart from coverages for Ransom the policy also cover following;
- In Transit / Delivery
- Personal Accident
- Judgments, Settlements, and Defence Costs
- Death or Dismemberment
- Kidnap/Alleged Kidnap
- Wrong Detention
The Sum Insured advisable for a company of your size and exposure is USD 4-6 Mn-Limit of Indemnity (LOI). Some countries are usually excluded from the scope of policy Viz- Iraq, Afghanistan, Nigeria,Kashmir (India) depending upon Insurance companies but the policy can be extended if required.
Few benefit of Kidnap, Ransom & Extortion Insurance to the company are:
- Protects Employee-As service of Renowned Agent are available.
- Shows Company’s caring attitude of Company toward employee.
- Enhances the Employer-Employee Relation.
- Improves Risk Management.
Will be happy to clarify any query on this proposal or on any other Insurance related matter.