Kidnap, Ransom and Extortion Insurance (K & R Insurance)

Kidnap and Ransom insurance or K&R insurance is designed to protect individuals and corporations operating in high-risk areas around the world. Kidnap and Ransom (K&R) insurance protects organizations against the financial loss that can arise when an employee is seized or detained for ransom or in the face of extortion. Backed by unparalleled consultant, medical, and emergency travel assistance services, we lend organizations the experience and resources typically not provided in-house to manage and resolve these incidents successfully.

Scope

The policies may be written to cover high profile families, non-government organizations (NGOs), and multinational organizations.

Coverage

K&R insurance policies typically cover the perils of kidnap, extortion, wrongful detention, and hijacking. 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. Typically, the insured must first pay the ransom, thus incurring the loss, and then seek reimbursement under the policy.
Losses typically reimbursed by K&R insurance include:

• Ransom Monies - Money paid or lost due to kidnapping
• Transit/Delivery - Loss due to destruction, disappearance, confiscation, or wrongful appropriation of ransom monies being delivered to a covered kidnapping or extortion
• Accidental Death or Dismemberment - Death or permanent physical disablement occurring during a kidnapping
• Judgments and Legal Liability - Cost resulting from any claim or suit brought by any insured person against the insured
• Ransom monies Related expenses: salary, personal financial loss, medical costs, rest and rehabilitation, travel and accommodation, loan interest, reward, interpreter, forensic analysis, other reasonable and necessary expenses, recall expenses, business interruption, etc.
• Consultant costs
• 24-hour emergency response helpline Cover options
• Evacuation and repatriation
• Child abduction

Key Benefits

• Traveling to certain foreign countries, high-net-worth individuals, and famous people are most likely to need K&R insurance.
• Kidnap and ransom insurance provides negotiators and eventual reimbursement, but the victims must pay the ransom with their own money before it can be refunded.
• A basic K&R policy typically covers ransom payment, loss of income, interest on bank loans, and medical care.

Claim Process

In an unfortunate event of kidnapping or extortion, the insurance company should be informed immediately and the below-mentioned claim process should be followed:

• In case of incidents like kidnap, extortion, or wrongful detention, a relative of the insured must immediately report to the insurance company
• Details like the identity of hostage, details of all communication made with kidnappers, demands if made any, details of all significant events, must be provided to the insurance company to evaluate the coverage
• Oral, as well as a written notice about the incident, should be provided to the insurance company with the date and time of the incident, along with the latest updates
• If approved, the claim amount will be paid as per the valuation
• Produce all such records and proof as may be required by the surveyor or the Insurer for arriving at the extent of loss and the liability under the policy.
• Provide documents such as, claim form, claim bill, copy of Policy, FIR copy, Event details, Method used by kidnappers to transmit their demands, Other documents required as per the need of the case.