Kidnapping and Ranson
Kidnap and ransom insurance is a speciality crime coverage that protects against financial losses that arise when an insured is threatened with kidnap, extortion or illegal detention domestically or abroad. The Policy is a specialised policy meant for not only the management, key personnel and their family members. The policy gives a comprehensive cover which goes beyond the settlement of the ransom amount but also handling the kidnappers in order to save the family and coordinate with all the agencies like Police, Media etc to bring best for the organisation and their family members. In a situation of eventuality special agency is deputed by the Insurance Company who helps to mitigate among all the stakeholders like Kidnappers demand, various government agencies, family members and external bodies so as the safety of the kidnapped is ensured and the matter concludes satisfactorily.
Coverage
This insurance covers sudden, unforeseen and accidental loss or damage other equipment caused by :
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The reimbursement of financial losses associated with a kidnap for ransom, extortion, illegal detention, hostage situations and hijacking incidents – both domestically and abroad
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Risk mitigation and security strategies for individuals and corporationsfor international risks, most policies will include safe travel advice and training
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Ransom monies - Money paid or lost due to kidnapping
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Transit/delivery - Loss due to destruction, disappearance, confiscation, or wrongful appropriation of ransom monies being delivered to a covered kidnapping or extortion
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Accidental death or dismemberment - Death or permanent physical disablement occurring during a kidnapping
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Judgements and legal liability - Cost resulting from any claim or suit brought by any insured person against the insured
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Additional expenses - Medical care, severe disruption of operations, potential damage to company brand, PR counsel, wage and salary
replacement, relocation and job retraining, and other expenses related to a kidnapping incident.
GENERAL EXCLUSION
>> Any fraudulent, dishonest, or criminal act committed for obtaining kidnap insurance money will not be covered
>> The policy claim will be null and void if the incident is found to be fraud, misrepresented or in case of any willful concealment of facts
>> Any consequential loss in business or at an individual level resulting from any unfortunate event will not be covered under this policy
>> If an individual travels to a country outside India or outside the mentioned territory, such as Iran or Syria, where the United States has imposed sanctions, coverage will not be considered.
EXTENSIONS OF COVERAGE (by some Insurance carriers)
>> Business interruption
>> Emergency evacuation or repatriation
>> Child abduction
>> Tiger kidnapping and disappearance
>> Cyber extortion business interruption
>> Product recall expense
A crisis consultant will act as an adviser to the client and provide reassurance and practical advice based on their many years of experience. They help the client’s crisis management team to prepare for both likely and unforeseen eventualities, and pursue a controlled, structured strategy that is firmly grounded on proven principles. This will include advice on issues such as financial strategy, communications, the handling of threats, family management, liaison with the media, law enforcement, and other stakeholders, and practical considerations around ransom collection, delivery and payment, and the victim’s release. Consultants are there to act as advisers. All decisions, ultimately, rest with the client.
Crisis consultants provide the client with options and recommendations, advising on the pros and cons of possible outcomes. If a client decides to act against the advice, then the consultants will support them in their chosen course of action, and continue to work towards the successful resolution of the crisis.
Every case is extremely difficult and stressful for those involved, particularly when there is human life at stake. Each brings its own unique challenges. Some of the most difficult aspects include helping clients to cope with the emotional stress presented in these circumstances, while remaining focused on the objective of resolving the crisis. It is a very stressful time for the victim’s family. Good family management is absolutely essential. Then there are logistical and legal challenges around issues such as ransom payments, moving money across borders, delivery, and victim release. The role of crisis consultants is to bring their many years of experience to bear, to help clients who are experiencing these situations for the first time.
Accept that it could happen to you or one of your employees, assess the risk, work to reduce the risk and administer protection that can mitigate consequences in the event of an incident. There is much that an organization can do to reduce this type of risk, from gaining a proper understanding of its exposure and implementing effective, appropriate policies and procedures, to raising awareness of personal security matters amongst staff through relevant training. In the event of an incident, the organizations that have proven themselves able to cope most effectively are those with crisis management plans and procedures that have been thoroughly tried and tested in advanceMY EMPLOYEES
Our client is always in control of the ransom amount. Our crisis consultants offer advice throughout the process but ultimately do not make that decision. As the insurer, then provides a reimbursement of the ransom, but does not pay the ransom.
In some territories it is illegal, but most local authorities understand that if a life is at risk, then a humanitarian response takes precedence. Part of the consultant’s role is to help the client resolve the issue while ensuring they remain within the law.
While on a response case NYA acts on behalf of the insured client, providing advice directly to the organization or family to help them achieve the key objective, which is the safe and timely release of the victim.
Some insurer offers the services of professional support and medical support after an event or the victim and their family. Expenses can include, but are not limited to, travel, lodging, meals, and recreation of the victim and their family.
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Kidnapping and Ransom Insurance FAQ:
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Claim Process:
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In the event of a kidnap incident the insurance company must be informed by the fastest possible means.
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With the receipt of the intimations from the insured, certain relevant documents are asked by the insured for evaluating the coverage.
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For seamless processing of claims make sure to submit all the required documents asked by insurance Company
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FIR copy
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Assist the investigator or expert appointed by the Insurance Company to handle the situation for you.
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