Kidnap Ransom & Extortion (KRE)

Kidnap Ransom & Extortion (KRE)

What is Kidnap Ransom & Extortion (KRE)?

  • Kidnap: when a person/s is involuntarily abducted & taken to a different location followed by a ransom demand.  It typically involves 3 parties: a victim, a perpetrator & a party receiving the ransom demand.
  • Hijack: when a person/s is illegally detained on board an aircraft, watercraft or vehicle.
  • Detention: the involuntary confinement (or detainment) of a person/s by a legal authority.
  • Extortion: the:
    • threat to kill / injure / kidnap a person/s;
    • threat of malicious product tamper (Note, this policy covers the response consultant expense & business interruption due to the extortion but there is no cover for product recall costs.  A stand-alone Product Recall insurance policy provides comprehensive cover for product recall); or
    • IT extortion threat (Note, the policy covers the response consultant expense but there is no cover for business interruption. A stand-alone Cyber Insurance policy typically provides cover for business interruption)

 

Who we cover?

Insureds who have operations overseas &/or send its personnel overseas;
Insureds trading in vulnerable sector/trade (e.g. Insured imports/distributes firearms, bullet proof vests, explosives/detonators, professional money carriers, etc) where they are at greater risk of extortion/kidnap.

 

What we cover?

  • Response consultant costs;
  • Ransom / Extortion – reimburse the Insured for any ransom/extortion charge provided always that such reimbursement does not break any relevant laws (e.g. sanctions, etc);
  • Accidental death/dis-member of Insured person; &
  • Other benefits such as:
    • Transit costs of Insured person & in specific instances, immediate family
    • Legal/medical costs
    • Reward
    • Reasonable fees
    • Interest
    • Salary for the replacement individual/s of an Insured person/s

 

Why us?

  • Policy is 100% underwritten by an APRA approved insurer
  • Claims are managed by professional crisis consultants
  • Policy is subject to Australia’s General Insurance Code of Practice
  • Cover is able to be tailored to suit the Insured’s requirements

 

But I have Personal/Corporate Travel Insurance… why do I need KRE Insurance?

For such Travel Insurance, IF there is any cover afforded for KRE, it’s sub-limited for the ransom charge/costs only & there is NO cover in respect to the response consultant and other benefits.

 

But my Personal/Corporate Travel Insurance has response consultants… can they assist with a KRE situation?

A KRE Insurance Policy requires a KRE response consultant with detailed, local knowledge in the event of a KRE situation.
After all, you wouldn’t engage:

  • a car mechanic to repair a boat; or
  • a concreter to lay bricks; or
  • a cardiologist to operate on your brain.

So, why would you rely on a travel insurance response consultant who’s typically handling enquiries about cancelled trips, lost baggage, missed flights, hire car excess reimbursement and medical evacuation?

 

I don’t think we really have an exposure…

In most instances, the KRE exposure is minor but the impact – financial, emotional & otherwise – is substantial hence the need for a KRE policy.
Additionally, there is the potential for litigation from affected employees (& their families/estate) if the employer failed to take all reasonable steps to protect their affected employees. Whilst a KRE policy does not stop such litigation, the existence of a comprehensive KRE policy does demonstrate that the employer  took reasonable steps to at least source insurance for a KRE scenario.

 

Want more information?

Travel Advice from the Australian Government Department of Foreign Affairs & Trade
Central Intelligence Agency’s Worldwide Factbook
EU’s Directory of Travel Advice from their Member States

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