Now, Kidnapping Insurance

Today’s Business Times, Singapore (page requires subscription) carries an interesting story that companies in India are taking out kidnapping insurance for their top employees located in high-growth hubs such as Hyderabad, Bangalore and Delhi suburbs Gurgaon and Noida. As for the nature of the policies taken, the newspaper reports:

“The kidnapping-terror policies cover ransom, hiring charges of negotiators and trauma counselling. The insured amounts can range from US$1 million to US$5 million, with premiums typically 1-3 per cent. In the US, such premiums gross over US$300 million.”

This comes in the wake of several kidnappings (high-profile or otherwise) in the recent past that have targeted top-level corporate executives and their families.

About the author

Umakanth Varottil

Umakanth Varottil is an Associate Professor at the Faculty of Law, National University of Singapore. He specializes in corporate law and governance, mergers and acquisitions and cross-border investments. Prior to his foray into academia, Umakanth was a partner at a pre-eminent law firm in India.

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