Corporates panic, rush for 'kidnapping' insurance

NO NAPPING OVER KIDNAPPING: Insurance companies say inquiries for the policy have gone up by 20 per cent.

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Keywords: Corporates, Insurance

Mumbai: The recent alleged kidnapping of a corporate in Gurgaon last week not shocked the corporate world. Not willing to take any chances, corporates are now running to insurance companies to buy kidnap and ransom policies for their employees.

Insurance companies say the inquiries for this policy has gone up by specifically in northern India.

“It's the high profile kidnappings like the CEO in Noida and FCI Chairman etc that have increased the awareness about this cover. The enquiries for this cover have gone up by at least 20 per cent,” says Anuj Tyagi of ICICI Lombard General Insurance

Ransom and kidnap policies cover various expenses including ransom charges, expenses incurred for hiring special negotiators as well as the trauma counselling that the kidnapped victim goes through after being released.

The premium charged is normally one to two per cent of the sum insured and varies according to the sensitivity of the region where the policy holder is.

Insurance companies say even high net-worth individuals are now becoming concerned about such dangers and are going for kidnap and ransom covers.