KIDNAP and RANSOM INSURANCE

Kidnap and ransom have become an important issue for marine transportation and insurance.  Some areas are consistently known as “kidnap hotspots” such as Gulf of Aden, Somalia, Indian Ocean, the Malacca Straits, Nigeria, Tanzania, Kenya, Mozambique and China.

The K&R (kidnap & ransom) cover is to provide ship owners reimbursement for risks against pirate attacks.  The most important parts of a K&R policy are the preventative and response services included within the policy.  All K&R policies contain a  specialized services of a response firm.  This firm employs consultants who respond to a threat or incident and assist the policyholder in negotiating the safe release of a kidnap incident.  The fees for the response consultants are met by the insurance company.

We as Omni held two seminars in 2009 and 2010 presented by underwriting agency Griffin and insurer Hiscox.  These companies are currently the two of the premier insurers in field of kidnap and ransom insurances.
Subject to policy limits and terms and conditions, a K&R policy provides coverage for the following risks:

Reimbursement of Ransom

Loss of ransom in transit

Security consultants fees  and expenses.

Personal accidents

Additional expenses

Legal fees

Additionally, K&R underwriters can provide, Loss of hire (LOH) cover during the kidnapped period.