India ranks second on the list of kidnapping hotspots around the world, a leading daily reports. The leading country on the list is Mexico. India's neighbours Pakistan and Afghanistan rank third and seventh on the list, respectively.
The list, published by Control Risk, based the ranking on reports of abductions. International reinsurers who provide kidnap and ransom cover to Indian and multi-national corporations refer to this list.
According to the report, insurers say that India being ahead of countries like Afghanistan and Pakistan on the list means that number of complaints regarding kidnaps are being made and is increasing. While kidnappings may not be an organised business in India, there are frequents incidents taking place in the North and East of the country. This means that India is beginning to be seen as market for selling Kidnap and Ransom insurance policies.
Sanjay Radhakrishnan, CEO of JLT Independent Insurance Brokers. The firm has been arranging K&R cover for corporates for 25 years. In the report, Radhakrishnan is quoted as saying, "India stands out because of the sheer numbers and the vast spread of the population in remote areas."
MD &CEO of Future Generali India KG Krishnamoorthy Rao says there has been an increase of 25% to 30% in K&R covers in India.
The main reason for corporates to buy the cover are the response consultants who are mostly from law enforcement backgrounds and can ensure the safety of the victim while negotiating with authorities. In the report, Radhakrishnan says that response consultants work with the authorities to ensure safety of life.
Confidentiality is also ensured with the cover as most of the times it's not just the officials but also their family members and employees who are targeted. In most cases, the kidnappers abduct employees, as they are soft targets and any demand can be placed with the bosses.
The report says tha the premiums for the cover have been falling over the years as not many claim it in the market. Rao says that rates could rise if there more people make claims.
