Coverage
Kidnap and Ransom Protection
The Kidnap and Ransom (K&R) insurance plans available through CCW Global and our partners in Thailand are structured as indemnity policies. This means they reimburse financial losses incurred as a direct result of specific insured events, rather than paying out the ransom upfront.
These policies are tailored to address the multifaceted risks that arise in the event of a kidnapping, extortion, or unlawful detention, and typically include reimbursement for:
- Ransom Payments: Coverage for the financial loss resulting from ransom sums paid to secure the release of a victim.
- Transit and Delivery Losses: Protection in the event that ransom money is lost, stolen, or intercepted during transportation to its intended recipient.
- Accidental Death and Dismemberment: Compensation for bodily harm, dismemberment, or death sustained by the victim during the kidnapping or while in captivity—similar in nature to personal accident cover.
- Legal Liability and Judgements: Reimbursement for costs arising from legal proceedings connected to the kidnapping event, such as lawsuits or third-party claims.
- Associated Expenses: Coverage for a wide array of ancillary costs, including emergency medical care, psychiatric support, salary reimbursement for the victim, and other crisis management-related expenses.
It’s critical to understand that most K&R insurance policies do not pay ransoms directly.
In the event of a kidnapping, the insured party or employer typically arranges the ransom payment independently; either from liquid assets or through emergency financing.
The insurer then reimburses this amount after verification and claims assessment. However, coverage is often extended to include interest on loans taken specifically for ransom payments, ensuring organizations or families aren’t doubly penalized by needing to borrow under extreme duress.
