What is the kidnap and ransom policy?
What is the ‘kidnap and ransom’ policy being sold to Indian corporates?
Shyam Bhat, Bengaluru
This policy is generally taken by corporates for their employees working in risk-prone areas; though anyone can opt for it. The policy typically offers protection to corporates or individuals from incidents such as kidnapping, extortion, wrongful detention, and hijacking. The standard cover includes death or dismemberment benefits arising from a ‘covered incident’, ransom/extortion payment, loss of payment in transit, judgement, settlements and defence costs, recall costs, business interruption, 24-hour emergency response helpline, and related expenses. Remember, ‘covered incident’ here means that death only on account of kidnapping is covered in the policy.