KIDNAP AND RANSOM COVER

Kidnap for ransom and extortion are becoming increasingly serious problems, especially in Africa and South America, and the average ransom demand has doubled in the last four years with some payment demands exceeding R400 million.  It is not only the rich and famous who are the potential targets of kidnappers but any foreigner who is perceived to be wealthy or who works for a big organisation with extensive resources.

Insurance against the risk of kidnap or extortion not only protects against financial loss but also provides the services of crisis management and security consultants to manage incidents on the policyholder's behalf. Kidnap and extortion insurance typically covers the following scenarios: kidnapping with a ransom demand; extortion – when payment is demanded following a threat to injure, kill, or kidnap an insured person; wrongful detention by a government entity or insurgent organisation and hijacking while traveling on any aircraft, motor vehicle or waterborne vessel. It is important to note that this cover includes the services of highly professional consultants who guide the negotiation process which can dramatically affect the outcome of a kidnap situation.

There are many expenses related to kidnapping and extortion which can also be covered. These include medical costs, rest and rehabilitation, travel and accommodation, loan interest, reward payments, interpreter fees and forensic analysis as well as access to a 24-hour help line.

Businesses who count high net worth individuals amongst their employees or send employees and their families to high risk areas should consider taking out insurance against the risk of kidnapping and extortion. 

Contact SATIB Insurance Brokers for more information on this type of cover.

Written by Gavin Courtenay, Managing Director, SATIB Insurance Brokers.