Kidnap and ransom insurance provides coverage for kidnappings and ransom payments. It covers items like ransom payment, loss of income, interest on bank loans, and medical/psychiatric care for the victim. The insurance also provides crisis management teams to help minimize losses. Companies that offer this insurance include HDFC Ergo, ICICI Lombard, Tata AIG, United India Insurance, and The New India Assurance. While the insurance is not available in high-risk countries, it can help companies and individuals mitigate financial and psychological risks from kidnapping.

1. KIDNAP AND RANSOM INSURANCE DONE BY ANN – 0910009 JEFNEY – 0910011 SRUTHI.R – 910016 MAHIMA – 0910046 DHRITHI – 0910080 MANSOOR - 0910086

2. INTRODUCTION(WHAT, WHY , WHEN) HISTORY RECENT NEWS REPORT CHART ON KIDNAP COMPANIES THAT PROVIDE THIS INSURANCE (presently) THE INSURANCE COVER INCLUDES COUNTRIES THAT CANNOT PROVIDE THIS INSURANCE A COMPANY THAT CAN INTRODUCE THIS INSURANCE IS…(Bajaj Allianz) OUR KIDNAP INSURANCE PLAN CONCLUSION TOPICS COVERED

3. Kidnap, Ransom and Extortion insurance provides numerous benefits and services to the applicant and the insured. Kidnap, Ransom & Extortion Insurance provides coverage for kidnappings and other events through a combination of financial indemnification and expert crisis management. A basic policy can cover items such as ransom payment, loss of income, interest on bank loans, and medical/psychiatric care. Besides insurance, companies can also utilize crisis management teams and employee training in what to do in a hostage situation to minimize losses due to kidnap or ransom. The Kidnap, Ransom and Extortion insurance covers named employees for individual or aggregate amounts, with deductibles requiring the insured to participate in about 10% of any loss. WHAT

4. Kidnap and Ransom insurance plans provide assistance to the family and business with regard to independent investigations, negotiations, arrangement and delivery of funds, and numerous other services vital to a safe, speedy and satisfactory resolution. Extortionists don’t discriminate. Any company of any size can be a target for extortion threats against the company and its employees. People tend to associate business extortion and kidnapping with global companies. The fact is, radical groups and criminals exist everywhere. Kidnap, Ransom and Extortion Insurance will help you manage the costs associated with an extortion threat against your products, proprietary information, computer system or your people can be enough to push a small to medium-sized company to its financial limits. These risks may not feel like everyday exposures, but too often they are. And when they happen, you may need financial assistance to meet extortion demands and the extensive costs associated with negotiation and recovery. Due to globalization of economies, multinational companies need to prepare for the possibility of attacks on their employees and facilities virtually anywhere in the world WHY

5. Kidnap Extortion and Detention are real dangers for companies operating both overseas and in domestic markets. They are often overlooked by management on the grounds that “it won't ever happen to us”, but the damage this can inflict on a business can be very severe - as the annual roll call of corporate and individual victims around the world testifies. With over 1,000 annual kidnappings of professionals and executives worldwide and numerous terrorist attacks, life and health insurance professionals should consider such policies for anyone who travels internationally. Those persons who are perceived to be wealthy need Kidnap and Ransom Insurance. Not everyone generally needs it. A kidnappers’ perception of victim’s liquid assets may have little to do with the real value of the victim’s assets. For people who travel frequently to high-risk regions such as Columbia and Peru, this coverage could be a life saver. WHEN

6. Kidnap & Ransom insurance is not a new product. Lloyd’s of London introduced it way back in 1932 in response to the then very famous kidnapping case of a 20-month-old Baby of Aviator Charles Lindbergh. Initially when it was introduced, wealthy families and companies doing business overseas in dangerous areas purchased this form of insurance. Today, the coverage under the policy is much wider. If you want to operate globally, perhaps a kidnap and ransom insurance is a compulsory requirement. Ransom / extortion demand can put companies to its financial brink. History

7. Due to increasing number of kidnappings, companies are buying kidnap and ransom cover for their employees. According to insurance executives, the sale has doubled in the past one year. The policy will also look after the reward money, personal accident, cosmetic surgery and legal expenses, apart from paying ransom. Although the market size of the product is not known, industry sources said the sum assured is in the range of Rs. 2-5 crores. Currently, there are five companies that are offering this product. The companies include New India Assurance, United India, Tata AIG, ICICI Lombard and HDFC Ergo. When the client informs about an incident, insurers are being assisted by their reinsurers in order to set up a control risk group. According to I S Phukela, General Manager at New India Assurance, the policy is popular among companies operating in the north-eastern part of the country, where incidents of kidnapping are high. Those who need to work in naxalite or terrorism-infested areas usually opt for such a cover, said insurers. RECENT NEWS REPORT

8. The number of policies has doubled in the last one year. Primarily, contracting companies buy this cover. Till now, marine and hull companies have started buying the cover, said Rajiv Kumaraswamy, Head of Risk and Reinsurance at ICICI Lombard General Insurance.Its low claim ratio, which is less than 10 percent, is encouraging insurers to market this product aggressively. Insurers expect the sales to go up in the coming days, since the number of companies expanding their global reach is increasing. According to I S Phukela, General Manager at New India Assurance, the policy is popular among companies operating in the north-eastern part of the country, where incidents of kidnapping are high. Those who need to work in naxalite or terrorism-infested areas usually opt for such a cover, said insurers.The number of policies has doubled in the last one year. Primarily, contracting companies buy this cover. Till now, marine and hull companies have started buying the cover, said Rajiv Kumaraswamy, Head of Risk and Reinsurance at ICICI Lombard General Insurance.Its low claim ratio, which is less than 10 percent, is encouraging insurers to market this product aggressively. Insurers expect the sales to go up in the coming days, since the number of companies expanding their global reach is increasing.

9. CHART ON KIDNAP

11. ICICI LOMBARD

12. TATA AIG

13. UNITED INDIA INSURANCE

15. COUNTRIES THAT CAN’T HAVE THIS INSURANCE AFGHANISTAN, ALGERIA, ANGOLA, AZERBAIJAN, BURUNDI, CENTRAL AFRICAN REPUBLIC, CHAD, COLOMBIA, CONGO REPUBLIC, COTE D'IVOIRE (IVORY COAST), DEMOCRATIC REPUBLIC OF CONGO, EGYPT, ERITREA, ETHIOPIA, GEORGIA (FORMER USSR), GUATEMALA, GUINEA, INDONESIA, IRAN, IRAQ (incl. KURDISTAN), ISRAEL, WEST BANK (ISRAEL), GAZA STRIP (ISRAEL), JAMMU (INDIA), JORDAN, KASHMIR (INDIA), KENYA, KOSOVO, KUWAIT, KRYGISTAN, LEBANON, LIBERIA, MADAGASCAR, MALAYSIA, MOROCCO, NEPAL, NIGERIA, PAKISTAN, PHILIPPINES, QATAR, RUSSIA, RUSSIA -CHECHNYA, RWANDA, SAUDI ARABIA, SENEGAL, SIERRA LEONE, SOMALIA, SRI LANKA-NORTH & EASTERN PROVINCES, SUDAN, SYRIA, TAJIKISTAN, THAILAND, TOGO, TURKEY, UGANDA, UZBEKISTAN, VENEZUELA, YEMEN, ZIMBABWE

16. A COMPANY THAT CAN INTRODUCE THIS INSURANCE IS... BAJAJALLIANZ Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between Allianz SE, one of the world's largest insurance companies, and Bajaj Fiserv. Allianz SE is a leading insurance corporation globally and one of the largest asset managers in the world, that manages assets worth over a Trillion. With over 115 years of financial experience, Allianz SE is present in over 70 countries around the world. Bajaj Allianz is into both life insurance and general insurance. Today, Bajaj Allianz is one of India's leading and fastest growing insurance companies. Currently, it has presence in more than 550 locations with over 60,000 Insurance Consultants. In June 2008, Bajaj Allianz entered into partnership with Thomas Cook India to provide travel finance. Bajaj Allianz Life Insurance ensures excellent insurance and investment solutions by offering customized products, supported by the best technology.

17. Our Kidnap and Ransom Insurance Plan 1) Ransom Money 12) PublicRelations 2) Informant Money 13) Travel Expenses 3) Crisis Management 14)Child Care Services 4) Accidental Death 15) Psychiatric - Expenses 5) Legal Liabilities 16) Security Coverage 6) Rehabilitation 17) Funeral Expenses 7) Personal Security 18) Interpretive & Forensic Services 8) Consultation 19) Business Security Consultation 9) Reward Money 20) Medical Services & Emergency consultancy 10) Negotiation Services 2 1) Family Counseling 11) Loss of Ransom in Transit 22) Specialized Equipment

18. CONCLUSION During the last decade, Indian economy has developed rapidly after liberalization and global integration. In the process a lot of wealth has been created for a vast majority of the urban population. On the flip side there has been a marked divide in the social structure and this has led to unrest in the lower strata of society. These classes of people have noticed the lavish lifestyle of the urban rich. In the absence of any concrete alternate to a reasonable employment for the lower class from the government and other NGOs being preoccupied with urban developmental activities, this class has in the past few years turned to crime in order to earn easy money and probably copy the lifestyle of the rich. Recent crime statistics in the urban area reveals that not only the lower classes but also some of the other groups have turned increasingly towards kidnapping because of the ransom money is easily available since the kidnapped person’s kin are very reluctant to seek police help because of the fear of threat of loss of life. Also another factor maybe that the kin feel that it is only a loss of money compared to the life of the victim. Kidnap and Ransom insurance plans are designed for providing not only money for ransom and reward, but the real strength to any Kidnap/Ransom policy is the response team members who are ready to provide onsite management/ assistance to the family or business of a kidnapped victim. The experienced negotiators are usually successful in reaching a solution to the matter without loss of life. Terrorists and kidnappers have an objective other than killing the victim. All these have given credence to an insurance which would properly cover all the issues like any loss of victim’s life and any ransom money that might have been paid. Our insurance plan provides such a facility to reduce the burden from the customer’s shoulders!

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