[K004]

kidnap/ransom insurance

Originated as a policy for financial institutions, primarily banks, and tailored to meet the standard kidnap procedure, which is forcing the bank to withdraw the ransom money from its vaults and deliver it to a designated place before release of the banker or family. The recent rash of kidnappings on an international scale involving a variety of corporations has created a heavy demand for a broadened coverage. At this time there is a limited market, a disinclination to write in certain countries, and no standardization in rates. The insurance covers named employees for individual or aggregate amounts, with deductibles requiring the insured to participate in about 10% of any loss. Not an easy class to underwrite. Personal accident coverage for kidnap victims is sometimes available.

Copyright: The Rough Notes Company, Inc., 1998, All Rights Reserved. 3040100