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Kidnap and ransom insurance

May 06, 2015

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srudee

hey people i hope it was of somr help for you guys

  • 1.KIDNAP AND RANSOM INSURANCE
    DONE BY ANN 0910009
    JEFNEY 0910011
    SRUTHI.R 910016
    MAHIMA 0910046
    DHRITHI 0910080
    MANSOOR - 0910086

2. INTRODUCTION(WHAT, WHY , WHEN)
HISTORY
RECENT NEWS REPORT
CHART ON KIDNAP
COMPANIES THAT PROVIDE THIS INSURANCE (presently)
THE INSURANCE COVER INCLUDES
COUNTRIES THAT CANNOT PROVIDE THIS INSURANCE
A COMPANY THAT CAN INTRODUCE THIS INSURANCE IS(Bajaj Allianz)
OUR KIDNAP INSURANCE PLAN
CONCLUSION
TOPICS COVERED
3. Kidnap, Ransom and Extortion insurance provides numerous benefits and services to the applicant and the insured. Kidnap, Ransom & Extortion Insurance provides coverage for kidnappings and other events through a combination of financial indemnification and expert crisis management. A basic policy can cover items such as ransom payment, loss of income, interest on bank loans, and medical/psychiatric care. Besides insurance, companies can also utilize crisis management teams and employee training in what to do in a hostage situation to minimize losses due to kidnap or ransom.
The Kidnap, Ransom and Extortion insurance covers named employees for individual or aggregate amounts, with deductibles requiring the insured to participate in about 10% of any loss.
WHAT
4. Kidnap and Ransom insurance plans provide assistance to the family and business with regard to independent investigations, negotiations, arrangement and delivery of funds, and numerous other services vital to a safe, speedy and satisfactory resolution. Extortionists dont discriminate. Any company of any size can be a target for extortion threats against the company and its employees. People tend to associate business extortion and kidnapping with global companies. The fact is, radical groups and criminals exist everywhere.
Kidnap, Ransom and Extortion Insurance will help you manage the costs associated with an extortion threat against your products, proprietary information, computer system or your people can be enough to push a small to medium-sized company to its financial limits. These risks may not feel like everyday exposures, but too often they are. And when they happen, you may need financial assistance to meet extortion demands and the extensive costs associated with negotiation and recovery.Due to globalization of economies, multinational companies need to prepare for the possibility of attackson their employees and facilities virtually anywhere in the world
WHY
5. Kidnap Extortion and Detention are real dangers for companies operating both overseas and in domestic markets. They are often overlooked by management on the grounds that it won't ever happen to us, but the damage this can inflict on a business can be very severe - as the annual roll call of corporate and individual victims around the world testifies. With over 1,000 annual kidnappings of professionals and executives worldwide and numerous terrorist attacks, life and health insurance professionals should consider such policies for anyone who travels internationally. Those persons who are perceived to be wealthy need Kidnap and Ransom Insurance. Not everyone generally needs it. A kidnappers perception of victims liquid assets may have little to do with the real value of the victims assets.
For people who travel frequently to high-risk regions such as Columbia and Peru, this coverage could be a life saver.
WHEN
6. Kidnap & Ransom insurance is not a new product.
Lloyds of London introduced it way back in 1932
in response to the then very famous kidnapping case of
a 20-month-old Baby of Aviator Charles Lindbergh. Initially
when it was introduced, wealthy families and companies
doing business overseas in dangerous areas purchased this
form of insurance.
Today, the coverage under the policy is much wider. If
you want to operate globally, perhaps a kidnap and ransom
insurance is a compulsory requirement.
Ransom / extortion demand can put companies to its financial brink.

History
7. Due to increasing number of kidnappings, companies are buying kidnap and ransom cover for their employees. According to insurance executives, the sale has doubled in the past one year.

The policy will also look after the reward money, personal accident, cosmetic surgery and legal expenses, apart from paying ransom. Although the market size of the product is not known, industry sources said the sum assured is in the range of Rs. 2-5 crores.
Currently, there are five companies that are offering this product. The companies include New India Assurance, United India, Tata AIG, ICICI Lombard and HDFC Ergo. When the client informs about an incident, insurers are being assisted by their reinsurers in order to set up a control risk group. According to I S Phukela, General Manager at New India Assurance, the policy is popular among companies operating in the north-eastern part of the country, where incidents of kidnapping are high. Those who need to work in naxalite or terrorism-infested areas usually opt for such a cover, said insurers.
RECENTNEWS REPORT
8. The number of policies has doubled in the last one year. Primarily, contracting companies buy this cover. Till now, marine and hull companies have started buying the cover, said Rajiv Kumaraswamy, Head of Risk and Reinsurance at ICICI Lombard General Insurance.Its low claim ratio, which is less than 10 percent, is encouraging insurers to market this product aggressively. Insurers expect the sales to go up in the coming days, since the number of companies expanding their global reach is increasing.
According to I S Phukela, General Manager at New India Assurance, the policy is popular among companies operating in the north-eastern part of the country, where incidents of kidnapping are high. Those who need to work in naxalite or terrorism-infested areas usually opt for such a cover, said insurers.The number of policies has doubled in the last one year. Primarily, contracting companies buy this cover. Till now, marine and hull companies have started buying the cover, said Rajiv Kumaraswamy, Head of Risk and Reinsurance at ICICI Lombard General Insurance.Its low claim ratio, which is less than 10 percent, is encouraging insurers to market this product aggressively. Insurers expect the sales to go up in the coming days, since the number of companies expanding their global reach is increasing.
9. CHART ON KIDNAP
10. COMPANIESTHATPROVIDETHISINSURANCE

  • HDFC ERGO

11. ICICI LOMBARD 12. TATA AIG 13. UNITED INDIA INSURANCE 14. THE NEW INDIA ASSURANCE