Contact

David Partner

 

Kidnap and ransom

Kidnap and ransom insurance is an area where expert knowledge and established market relationships pay dividends. Having a specialist kidnap and ransom team means that we are one of the few brokers in the market who have a specially negotiated facility which allows us to place up to US$ 50 million worth of cover with secure markets and offer extremely competitive terms.

The wordings for kidnap and ransom policies are largely similar, but individual underwriter's attitudes to territories differ considerably. Underwriters offer their own response teams to handle incidents and can offer additional advice. Some will also offer a premium discount if you take up the additional services offered by the response team. Due to this, it is important that we work with you in order to select the appropriate partner that matches your particular requirements.

Items generally covered by a kidnap and ransom policy include:

  • The amount surrendered as ransom. Ransom is a reimbursement policy, meaning that the underwriters recompense the insured for cash surrendered to pay a ransom. In the case of marketable goods or services surrendered as ransom, the underwriters will pay the actual cash value at the time of surrender
  • Loss in transit of the ransom while it is being conveyed to the kidnappers by the authorised messenger
  • Fees and expenses of the response team

Additional outgoings which may arise as a result of a kidnap and ransom include:

  • Fee for independent negotiator engaged with the underwriters' agreement
  • Costs of travel / accommodation for the policyholder or insured person
  • Fees for independent psychiatric / medical care incurred prior to, and within 12 months, following the release of the insured person
  • Fees for independent legal advice incurred prior to, and within 12 months, following the release of the insured person
  • Reward for an informant which leads to the arrest and conviction of parties responsible for an insured event, provided approved by local law enforcement officials
  • 150 per cent of the insured person's salary (limited to net payments which have not been paid by the employer during the period of kidnapping)
  • Interest on loans raised specifically to pay the ransom, provided the loan is reimbursed within seven days of payment by the underwriters
  • Cost of recording equipment and advertising incurred solely to obtain the release of the insured person, when recommended by response team
  • Personal accident (loss of limb / sight / extremity, permanent total disablement or death) as a direct result of kidnap or attempted kidnap - provided it causes injury or death within 12 months of the incident