Kidnap and ransom insurance

From Wikipedia, the free encyclopedia

Kidnap and Ransom Insurance or K&R Insurance is designed to protect individuals and corporations operating in high-risk areas around the world, such as Colombia and Peru[1]. K&R insurance policies typically cover the perils of kidnap, extortion, wrongful detention and hijacking[2].

K&R policies are Indemnity policies - they reimburse a loss incurred by the insured. The policies do not pay ransoms on the behalf of the insured. The insured must first pay the ransom, thus incurring the loss, and then seek reimbursement under the policy[3]. Losses typically reimbursed by K&R polices are ransom payments, Loss of Ransom-in-transit and additional expenses, such as medical expenses[4].

The policies also typically indemnify Personal Accident losses caused by a Kidnap. These include Death, Dismemberment, and Permanent Total Disablement of a kidnapped person[4]. They also typically pay for the Fees and Expenses of Crisis Management Consultants[5]. These consultants provide advice to the insured on how to best respond to the incident.

Policies typically require clients to restrict the knowledge of the existence of the coverage[citation needed]. The policies may be written to cover families and corporations. Some policies include kidnap prevention training[citation needed].

[edit] References

  1. ^ Kidnap and Ransom Insurance Explained
  2. ^ Kidnap and Ransom Insurance
  3. ^ Miller Insurance Services Limited - Programmes and facilities - Kidnap and ransom
  4. ^ a b Bellwood Prestbury International Insurance Services
  5. ^ http://www.asishouston.org/ChapterNews/Speakers/St_Paul_Factsheet.pdf

[edit] Further reading