KIDNAP & RANSOM INSURANCE

The way we travel, why and where we travel has evolved in the past few decades. Today many more people travel globally for many reasons; often for tourism or for business purposes. The requirements for travel have also changed over the years but significantly since 9/11. Nowadays visas, travel insurance and immunization prior to departure are standard procedures. Travel intelligence advice firms such as us at PAR-SEC Consulting offer innovative services for travellers to higher risk regions. Kidnap and ransom insurance is a new product that is associated with travel to dangerous countries and areas of the world. The threat from kidnap for ransom is escalating from occasional incidents to planned activities from well-organised groups.

What exactly is Kidnap and Ransom insurance? How does it work and for who is this coverage offered? We have contacted an insurance broker who also advises for such policies. Mrs. Sandra Lambert, from Blue Sky Insurance Brokers recently sat down with us to discuss this type of protection and to answer a few questions.

PAR-SEC Consulting: Sandra, what exactly is Kidnap & Ransom (K & R) insurance? 

S: To describe this insurance protection in a few words, K & R coverage is designed for corporations, their employees and families while working abroad in countries that are defined as dangerous from the risk of K & R situations. In addition, K&R insurance policies typically cover the perils of kidnap, extortion, wrongful detention and hijacking. These are indemnity policies.

PAR-SEC Consulting: Thank you. How do those policies usually work?

S: It depends on the particular situation at the time for the policy holder, the length of the kidnapping, where it occurred, the type of kidnapping - it could be a "snatch and grab" for quick ransom and release, etc.  

PAR-SEC Consulting: Can anybody purchase this type of coverage?

S: The insurance companies that offer this service tend to target global employees of large firms involved in sectors such as in the mining industry and individual contractors that support military operations in countries such as Afghanistan. So, usually strictly corporations. 

Tourists can use the services of travel advice firms such as yours, or as recommended from several governments.

PAR-SEC Consulting: That is true. New Zealand, for example has recommended that their citizens "are advised to seek professional security advice before travelling to areas of particular risk". 

So I have been kidnapped while working for an oil company in Nigeria. What happens next?

S: Once you have been reported as missing from your employer or when a ransom as been issued from a group for your release, specialists under contract with the insurance company will conduct an investigation, will intervene to initiate negotiations, do a ransom drop to recover the individual and will evacuate the person after a medical evaluation was carried out. Some investigators, interestingly enough, have a background similar to your CEO; many are ex-military intelligence or even ex-CIA. Following successful repatriation, the policy can even include psychological evaluation and if PTSD is diagnosed, a rehabilitation program is included. 

PAR-SEC Consulting: Interesting. Are the premiums expensive for an employer?

S: Surprisingly no. It also depends on several factors such as the frequency of K & R reported for a specific area or the likely amount to be disbursed. The higher the risk, the more expensive the premiums.

 PAR-SEC Consulting: Are there exclusions?

S: There are. For example, if an employee was kidnapped, say, following he or she commits a crime such as drug running or any other act that is recognized as illegal in Canada, the policy will exclude coverage.

 PAR-SEC Consulting: How can one get the coverage?

S: The insurance company will assess the requirements and qualify the person or not based on several factors.

 PAR-SEC Consulting: Thank you for your time with us today, Sandra!

S: My pleasure.

Every travel destination is uniquely different and requires adequate research, analysis and accurate assessments to properly advise against the possible threats and hazards. We welcome inquiries so we can determine your security needs. Your first consultation is always free. We invite you to review our past twitter posts @parsecconsult as well as this blog's entries. 

We encourage feedback and questions to our e-mail:parsec.consulting@gmail.com

Our website: http://parsecconsulting.wix.com/parsecconsulting

Attribution: copies and redistribution of the above material in any medium or format is authorized providing full attribution is credited by using full link of present blog.