KIDNAP INSURANCE DEFINITIONS

Those considering the purchase of extortion insurance or kidnap & ransom insurance, you should be aware of the following industry terms and definitions, needed to compare and understand insurance policies. Understanding these important terms now will help when you speak to one of our associates personally by phone. We have access to different kidnap and ransom insurance markets in order to meet the unique needs of our customers in various countries.

Expatriate: Anyone living outside of their country of citizenship for one year or more for the express purpose of working in the host country.
Express Kidnapping: Typically used to describe a quick or short-term kidnapping in which an expatriate or business traveler is abducted for less than 24 hours. Kidnappers steal cash and can even use the ATM card or credit cards in some cases. Kidnap victims that comply are often returned unharmed in this "back of the van" kidnapping method.
Extortion: When used regarding expatriates and kidnap and ransom insurance, extortion refers to a demand made against an expatriate or foreign traveler where if the demand is not satisfied, harm of some kind will follow. This can be physical harm, bodily harm, expatriate kidnapping, or destruction of the local plant, equipment, or office. Extortion refers to a "general threat" before harm.
Gulf of Aden: The "infamous" body of water off the coast of Somalia, Africa which is the # 1 hotspot in the world today for the hijacking of ocean vessels and the kidnapping of maritime crews.
Kidnap & Ransom Consulting: The process by which a security consultant gets involved as quickly as possible after an international kidnapping to negotiate the safe release of the kidnap victim and to reduce the demands of the kidnappers to a level which can be more easily met to facilitate release. Consulting fees can be included in a good kidnap and ransom insurance plan or it may not be included. Consulting fees can be as high as $3,000 US a day in some locales.
Kidnap & Ransom Insurance: A form of insurance that pays a ransom "benefit" to beneficiaries in the form of a lump sum payment to the insured or kidnappers, and in some instances pays the fees for the consulting necessary to return a kidnap victim unharmed.
International Workers Compensation Insurance: Insurance provided by an employer that is meant to provide coverage for expatriates for work related injury and illness that may occur in the host country. International workers compensation insurance can contain a kidnap and ransom insurance provision which may not be of the highest quality.
Maritime Kidnap & Ransom Insurance / Marine Kidnap & Ransom Insurance: A form of insurance for the shipping industry to protect the crew of ocean going vessels. See "Gulf of Aden".
McKinley International Risk Management: The organization behind www.kidnapandransom.net , an international brokerage firm that works to provide insurance solutions for expatriates working all over the world, of which kidnap and ransom insurance is one solution. Other lines of expatriate insurance include, expatriate medical insurance, life insurance, disability, medical evacuation, repatriation, and international renters insurance.
Assault Expense: A benefit in some K & R insurance policies to cover the response of consultants and the medical and psychological expenses associated with violence on the insured’s residence premises caused by a person that brings weapon onto the premises with the intent to injure an insured person.
Insured Events: In regard to kidnap insurance, the events and incidents listed in the kidnap insurance policy that will be paid or reimbursed by the insurance company, or incidents that qualify for some sort of support by the insurance company, such as the security consulting services. The more insured events that are covered the better
Insured Persons: The beneficiaries of a kidnap for ransom insurance policy; The people covered; For example, an expatriate may be covered by a K & R insurance policy, but are the dependents "insured persons" as well? In a named kidnap and ransom policy only those named and listed on the insurance policy have coverage. Other policies will cover a class or group of individuals by definition without each being listed by name. This policy is called a blanket program.
Kidnap for Ransom Response Team: Refers to the consultant group that is available to intervene in the event of an expatriate abduction or business traveler kidnapping. Kidnap insurance policies differ widely by the competence of the kidnap response team and the consultant behind the coverage.
Kidnap Insurance: See kidnap & ransom insurance: An alternative term for the same insurance product.
NGO: A non-governmental organization (NGO) is a legal entity that is not affiliated with any government nor for profit business who’s purpose is a wide social or humanitarian aim that may have some political agenda. A NGO is very similar to standard non-profit organizations but there are some slight differences. U.S. A.I.D. refers to NGOs as PVOs, or Private Voluntary Organizations.
Political Evacuation: Refers to a product offered in the marketplace where an insurance policy will pay the expenses to evacuate a foreign national out of a country because of a political crisis. Political evacuation is not limited to evacuating expatriates out of a country by air. The most recent large scale political evacuation that met the definition put forth by insurance policies is the uprising in Egypt. War is not the only trigger under a political evacuation insurance policy. Other triggers include the jailing of foreigners by government, a coup d’etat, or the government of a country declaring certain visitors of country persona non-grata (meaning unwelcome person.)
Wrongful Detention: A benefit in many kidnap and ransom insurance policies. Whether inside a policy or not, the term means the false arrest, detention, or incarceration of an expatriate or business traveler by a government agent or authority. If a gang of thugs abducts an expatriate it is not "wrongful detention." Rather, this term refers to being taken by the police, military, or another government agent in the host country. If the expatriate has been arrested and charged with a real crime this benefit, of course, does not apply. For example, an expatriate in Singapore is caught stealing and the charges are legitimate.