Kidnapped? Don’t worry! Insurance will sort it out
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By Alex Kiprotich An insurance company has introduced a cover against kidnap and ransom. The launch of the Kidnap or Ransom Insurance cover is informed by the wave of abductions. In a move likely to ruffle the security agencies, AIG Kenya Insurance Company has come up with proposals for kidnap and ransom or extortion cover. In the product to be launched next month, the insurer will meet cash ransom demands by kidnappers to ensure safe return of victims. The insurer will also provide services of experienced response team that will work closely with relatives of the kidnapped. "Having a professional response team brings a higher degree of probability that there will be a safe conclusion in most cases," said a manager at AIG who did not want to be named because he is not authorised to speak to the media. Although it is yet to be officially launched, the insurer’s distribution and marketing manager, Ms Catherine Igathe, says the matter has been finalised and a form posted to those interested in the cover. "At the moment we are concentrating on the re-branding and will launch it next month," Igathe said. With the cover, kidnappers will be forced to negotiate with insurance companies on ransom. Kidnapping has been on the rise in the last few months forcing families to pay out millions of shillings to secure the release of victims. The cover defines kidnap or alleged kidnap as a seizure or detention of an insured person for the purpose of demanding ransom. It also includes payment demands following a threat to injure or kill an insured person and involuntary confinement by a government entity or insurgent organisation. The manager, who spoke to us on condition of anonymity, clarified that the cover was new to the extent that it now would target Kenyans instead of foreigners. Risky regions He said the insurer previously targeted people travelling to regions considered risky, and prone to kidnaps. "This policy has been there only that kidnappings have not been common," he said. He said the insurer will target wealthy families, high profile companies, and firms with employees either travelling or based in regions where cases of kidnappings are high. Children and students from rich families are also potential clients for the insurance cover. He said policyholders for the insurance would afford the security of having a professional response team that would assist the victims in the event of a kidnap. Though people can take precautions against kidnapping attempts, they cannot completely eliminate the risk of being forcefully taken away. "That is why we are coming up with this package to for people to be at ease when they unfortunately fall prey of kidnappers or extortionists," he said. He said they are aware of concerns about the cover, but argued that people should consider it as aiding victims of such crime. "We know it will raise eyebrows and that is why we are still treating it as an internal matter," he said. Morara Apiemi, an advocate of the High Court and an associate member of the Chartered Insurance Institute of India, said the cover goes against the principles of insurance practice. "It is an ingenious idea, but it goes against insurance practice besides perpetuating criminal acts," he said. He said victims of kidnapping have no legal liability accrued to kidnappers thus the policy is against the Constitution. "Kidnapping is uncertainty but of what form? This is a crime," he said. He told insurance companies to instead think of packages for tracking devices. "This will enable them trace you by activating it," he said. Police spokesman Eric Kiraithe said it is wrong to pay ransom. He thinks such covers will encourage the crime, arguing that it is wrong to negotiate with criminals. "The police are doing the best they can to deal with the wave of kidnappings and paying ransom is like abetting a crime," he said. He said the police should be given more time to deal with crime and asked people not to rush into paying off kidnappers. He said this was commercialising crime. The Association of Kenya Insurers chairman Nelson Kuria said he had been out of the country and promised to comment once he has studied the cover. He instead referred us to the association’s executive director Tom Gichuhi who, however, could not be reached. Insurance cover Ken Okong’o, a city lawyer who was held hostage for four days by kidnappers and forced to part with Sh1 million for his freedom, said the idea of an insurance cover is good but it runs the risk of legitimising crime. Okong’o said unless the insurance companies put elaborate systems to act very fast when a cover holder is in danger, it might not guarantee safety. "The kidnappers strike very fast and need swift action. They know the danger of taking long negotiating and would not like it," he said. Okong’o said what is important is for the police to assure Kenyans of their security. "Though an insurance cover will be seen as legalising crime, Kenyans are worried of their safety, and do not trust the police to act fast," he said. Another victim Mr Jimmy Musawa said the cover is very tempting for people who have fallen victim to the kidnappers because of their ordeal. "Because of what I went through, I am tempted to take the cover but at the same time it is not the best thing to do," he said. Musawa said as much as the cover is meant to ease the family agony, it might encourage kidnappers to be bold knowing that the probability of being paid the ransom is high. "With this in mind, the best way is not to take the cover because kidnappers will now be in full time business," he said. While this may should a ‘business opportunity’ for insurance firms, there is a possibility of a dead-end deal, of a legal insurance firm paying out criminals to free a victim. It is not clear how a claim would be made and paid out.