Reimburses insured for ransom paid to kidnappers and pays for professional assistance to help negotiate with the kidnappers. Cover is effected by corporations on named individuals or by ‘celebrities’. The policy is subject to a perperson or annual aggregage limit of indemnity and is subject to a substantial deductible or co-insurance clause. It is a condition of the policy that its existence is never disclosed. Banks cover ‘forced withdrawals’ from its vaults and money to secure the release of a banker or member of his family. Kidnap and ransom cover is also available at Lloyd’s for valuable bloodstock.
Insurance Encyclopedia
Kidnap-ransom insurance
A specialty coverage offered in the surplus and excess lines markets that responds to ransom demands for recovery of kidnap victims.
Kidnap-ransom insurance (Criminal)
A form of coverage that exists in only a few markets, without standard rates. This type of coverage protects a financial institution in the event that it has to pay ransom for an employee who is named in the contract.
Kidnap/ransom insurance
Specialty crime coverage that insures against loss by the surrender of property as a result of a threat of harm to the named insured, an employee, or a relative or guest of the insured or the insured’s employees. Available under an Insurance Services Office, Inc. (ISO), crime coverage form G, extortion (CR 00 08).
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MEDICAL,USA Type of insurance that gives coverage up to a certain limit for payment of money demanded by kidnappers for the release of an individual who is held against his or her will.
Kidnap/Ransom/Extortion Insurance
(i) Insurance which indemnifies, or pays on behalf of the named insured, money surrendered as ransom for specified individuals or classes of persons, or to prevent threatened physical damage to property of the insured. (ii) Insurance against the hazard of a person being seized outside the insured premises and forced to return and open the premises or a safe therein, or give information which will enable the criminals to do so. (iii) Insurance is written primarily for financial institutions and covers named employees for individual or aggregate amounts paid as ransom, with deductible requiring the insured to participate in about 10% of any loss. Only a few market write this type of coverage and there is no standardization of rates.
Kidnapping Coverage
Insurance against the hazard of a person being seized outside the insured premises and forced to return and open the premises of a safe therein or to give information which will enable the criminal to do so. This has frequently been one of the perils covered under a package crime policy.
Kidnapping coverage (Criminal)
Insurance that covers the peril of an individual being captured against his or her will, outside of the insured’s premises, and forced to collude in a criminal act, either by opening a safe or giving the robber the pertinent information to do so. This type of coverage is often included in a package crime policy.