The Kidnap and Ransom Insurance

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The Kidnap and ransom insurance was first introduced to protect the interests of the Individuals and the companies or the organisations which are operating in the high risk areas of the world. The Kidnap and Ransom Insurance policies usually include the names of the following locations :

• Mexico
• Nigeria
• Venezuela
• Haiti 

And some other parts of Latin america as well as the Russia  and the Eastern Europe. The Central Asian countries like Afghanistan and Iraq and some other countries who are slowly finding their name in the Kidnap and ransom Insurance.  These policies usually cover the wrongful detention, extortion, kidnap and sometimes hijacking.

The Kidnap and ransom Insurance polices are basically the Indemnity policies i.e they reimburse the losses and the expenses which is incurred by the insured, however the policies do not pay the ransom demanded by the Kidnappers on behalf of the Insured or the policy Holder.  The policy holder must typically first pay the ransom and then seek the reimbursement from the Insurance Provider.

Some times these policies also pay the fees and the expense incurred for the services of the Crisis management Consultants. The target groups of these policies are usually the members of the high profile Families and the top Staff of the Multi national Companies. Some policies even cover the Kidnap Prevention Training.  The Major factors which are usually considered by the Kidnap and ransom Insurance Policy providers are as follows :

• The Country of residence of the Insured : In case the Insured is living in the high risk country the Premium for the policy is gonna be very high when compared to the Insured living in the low risk area. 
• The Type of Industry the Insured is engaged in.
• Wealth of the Insured
• In case the policy is taken on the employees the travel pattern of the employees is considered.