Ransom Insurance comes to India!

Last updated on Aug 2, 2011

Posted on Aug 2, 2011

Now there is a new kind of insurance in India.  Its called “Ransom Insurance”.  Apparently, there are way too many kidnappings occuring these days specially amongst the high and mighty.  Therefore, its always a danger of a kidnapping looming around.

For example, in 2006, Anant Gupta, son of Adobe Senior Vice President Naresh Gupta was kidnapped for a ransom of Rs 1 crore!  To take care of such situations, the insurance companies like Tata AIG, ICICI Lombard, National Insurance, Bajaj Allianz and HDFC Chubb have come up with this new scheme.  What does it pay for?  All these:

  1. Reimbursement of costs associated with a kidnap for ransom
  2. Immediate and unlimited access to specialist response consultants
  3. Personal security and corporate risk mitigation guidelines
  4. Access to travel risk information and safe traveler training
  5. A crisis response team and professional advice
  6. Medical expenses, including psychiatric expenses and expenses for rest and relaxation and cosmetic or plastic surgery after release
  7. Loss due to injury (mutilation, loss of fingers, total disability as a result of a kidnapping, extortion or detention)
  8. Time away from work after release
  9. Travel expenses
  10. The cost of hiring and training new or temporary employees
  11. A reward paid to informants leading to the arrest and conviction of responsible parties.

So, it not only pays the moneys for the ransom, but also provides for specialists and consultants.  In US, however, this has been in vogue for quite sometime for the rich Sportsmen, entertainers and business leaders.  And in that case, the policies also pay for things like kidnap negotiators and psychiatrist’s fees for treatment of the victims and their families!

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