Wednesday, January 9, 2013

Kidnap Insurance as a Personal Liability Insurance

In the Philippines, there are a great number of local TV shows (telenovelas) and cinema movies that have kidnap and ransom scenes. Sometimes, I think they are not really relevant to the plot and wonder why they are even included.

Do these kidnap and ransom scenes imply that people should purchase their own kidnap and ransom insurance?

I became interested with kidnapping insurance rates when I was in my early teenage years. During these years, kidnapping incidents were very frequent in Chinatown area, where many Filipino-Chinese and Chinese kids were lost, taken by kidnappers.

In the Chinese schools near us, students had to be fetched by their parents immediately after the class dismissal time. Else, parents had to pay extra fees as school guards will have to stay to protect the kids staying inside the school. Students were strictly prohibited to visit ousitde-campus computer shops to play games or use computers. School administrators and parents were afraid that these places could be where kidnappers get their chance to take the kids for ransom.

As kidnapping had been picking up widely in the news headlines, the media raised more awareness about kidnap and ransom insurance. The information they shared has been useful to people since.

As heard and read through the TV news anchors and newspaper columnists, the kidnap and ransom insurance covers not only kidnapping but also hijacking and extortion.

If you're someone who holds a high position in your society and are known as rich, you might have the risks of getting kidnapped. If not you, your kids may be the target. Aside from this, if you have many enemies outside, you are also suggested to get protection by purchasing independent and group kidnapping and ransom insurance plans.

How Much Kidnapping and Ransom Insurance Plans Cover

Disclaimer: I don't know every policy stated in every insurance company that issues kidnapping and ransom insurance plans. I can only share the more generic coverage.

When you don't have money to pay for your ransom and the kidnapper gives you a time limit to pay (else he will do harm to your kid, for example), don't fret. The insurer can get you covered and pay for everything. But you need to pay for the ransom first and they will just offer you the whole compensation.

Compensation here includes the medical expenses and personal losses incurred after the kidnapping scenario. Sometimes, it can't be avoided for the kid or the one who's kidnapped to be traumatized. Expect that there will be mental damages and even disablement.

The kidnapping and ransom insurance plan covers also financial reimbursements for the patient to undergo therapy. When the victim has lost his job for any reason, he is entitled to claim the benefits of crisis management and he will be well-compensated.

Once you sign up for the kidnapping and ransom insurance, the insurance company will require you to attend a kidnap prevention training. This is to ensure that you will not your down guard and be aware at all times.

The insurer will also provide you with a crisis management training for hostage negotiations, hijacking and other high-risk episodes to get you alerted and prepared.

The kidnapping and ransom insurance offers benefits to your dependents, if you the insurer are the victim.

End Notes

If you don't have that amount of cash usually spent for kidnap and ransom, a good way to eliminate your worry is to keep yourself insured from kidnapping and ransom.

You may not be secured in every minute of your breathing life, but you can be sure that you will get insurance claims that will continue providing you with the stable life you were living before the kidnapping incident. Don't be complacent about the now. It's sometimes also good to think about what-if threats and dangerous situations such as this.