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
- Reasonable fees
- Salary for the replacement individual/s of an Insured person/s
- 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.