Processing .....please wait.. 
The article has been forwarded.... 
Companies buying kidnap cover due to increased kidnappings
By siliconindia
|
Friday, 25 June 2010, 00:35 IST |
1 Comments
Mumbai: 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, reports Shilpy Sinha of Business Standard.
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 
2-5 crore. The product is sold mostly in places like Delhi, NCR (National Capital Region) and Mumbai.
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.
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.
2-5 crore. The product is sold mostly in places like Delhi, NCR (National Capital Region) and Mumbai.
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.
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.