Kidnap and Ransom Insurance is a novel
idea designed to protect individuals and corporations operating
in high-risk areas. Here insurance policies typically cover
the perils of kidnap, extortion, wrongful detention and
hijacking.
Globalization and liberalization has encouraged
companies worldwide to explore countries and territories
in search of better markets for goods and services. Saturated
markets of developed countries, are forcing them to approach
emerging economies, where there is more exposure to country
risks due to factors like political unrest, corruption,
poverty and undeveloped legal systems. As a result, many
incidents go unreported to the authorities.
In India, this concept is a little new,
whereas in the West, it is quite an old area of insurance.
It was initially offered in 1932 by Lloyds of London, shortly
after the kidnapping of the toddler son of world famous
aviator Charles Lindbergh, which made headlines and resulted
in kidnapping being treated as a federal crime. The belief
that people are any company's most valuable asset reinforces
the need for organizations to ensure this kind of protection
for its employees. |
