Insurance majors are not crowing about it and clients are being asked to keep it under wraps. But the recent spate of kidnapping and extortion cases across the country has sent high net worth individuals, senior management executives and celebrities scurrying for cover to insurance companies.
Companies like Tata AIG, National Insurance Company, ICICI Lombard, Bajaj Allianz General Insurance Company have devised a kidnap and ransom policy. While there are no upper or lower limits, covers typically range between $1 million (Rs 4.5 crore) and $5 million (Rs 22 crore).
“We do consider proposals by our existing clients who would like a kidnap, ransom or extortion cover,” says National Insurance Company chief manager R. Shiv Kumar.
Most insurance majors are also offering a policy that provides coverage for losses incurred as a result of kidnapping: bodily injury or property damage. In all cases, the insurers insist on confidentiality of cover as they fear that publicity could lead to fraudulent claims.
“The cover being extended to individuals within the company is a slightly far-fetched idea but within Adobe globally, the top management team has such a cover,” says Adobe India managing director Naresh Gupta whose son Anant was kidnapped in November.
“This policy targets medium-to-large companies, especially those with operations and facilities outside India,” says a TATA AIG Insurance Co agent who did not want to be named. The premium depends on the features a client opts for: the ransom amounts and transit cost of monies to death or dismemberment during an incident.