Thursday, 21 January 2016

Kidnap and Ransom Insurance

A kidnapping incident can have a devastating effect on the family and employer of a victim. Apart from the mental trauma, the financial impact of paying a huge ransom cannot be ignored. This is where insurance cover for Kidnapping and Ransom or K and R cover can help individuals and employers.
The demand for K and R insurance has seen an increase in India following globalization and MNCs setting up operations in India.  Those in need of such cover include organizations that have high profile management and those that handle large amounts of cash or work with sensitive information or technologies. Top executives of these companies prefer to have K and R cover to protect themselves and their families. Employers too opt for this insurance cover to protect against huge losses on ransom payments, business interruption, litigation, adverse publicity and damage to reputation.

The cover provides financial and other resources to aid corporations and the families of employees in resolving a ransom demand in a kidnap. Most policies also provide financial resources for resolving extortion threats against corporate assets or products.

Another important point is the purchase of K & R insurance must be confidential. The existence of the coverage could create a target where none existed earlier.

Scope of Coverage:
The cover includes

Ø  Ransom / Extortion monies, including delivery expenses
Ø  Transportation loss of ransom money
Ø  Related expenses, viz., salary, personal financial loss, medical costs, rest and rehabilitation, travel and accommodation, loan interest, reward, interpreter, forensic analysis, other reasonable and necessary expenses, recall expenses, business interruption etc.
Ø  Judgment, Settlements and defense costs
Ø  Death or Dismemberment arising from a covered incident
Ø  Crisis management expenses , including negotiation services fees

Possible Extensions:

Ø  Evacuation and repatriation of the person
Ø  Legal costs to defend claims of negligence in incident handling 
Ø  Child abduction
Ø  Post-incident rest & rehabilitation expenses
Ø  Product contamination risks as part of extortion
Ø  Political threat coverage’s


Ø  Fraudulent, dishonest, or criminal acts of the Insured or a covered person(s), or any person authorized by the Insured to have custody of ransom monies
Ø  Monies paid by a covered person(s) in a situation where local authorities have declared such payment illegal
Ø  Monies or property surrendered away from the premises in any face to face encounter involving the use or threat of force or violence unless surrendered by a person in possession of such monies at the time of such surrender for the sole purpose of conveying it to pay an extortion or demand for ransom monies previously communicated to the Insured or a covered person(s); or
Ø  Monies or property surrendered on the premises unless brought onto the premises after the demand for ransom monies for the purpose of paying such demand; or

Premium Rating:
Rating of the policy shall depend upon perceived risks by the underwriter after considering variables which include geographical location, number of employees in a particular location, employee’s travels schedule, past kidnapping and ransom incidents, nature of duties etc.

Policy features:

Ø  The policy is generally issued on reimbursement basis
Ø  The policy includes limits per loss within an aggregate policy limit
Ø  Considering the peculiarities of the policy, it is normally a condition that the existence of the policy is kept confidential

In India K and R insurance is being offered by private sector insurance companies. . To know more about getting the right insurance policy based on your needs  and an unbiased opinion on the best options please visit or call us on +91 9848884363

Monday, 18 January 2016

Insuring Fine Arts

It can be unnerving when a collection of paintings, artifacts, sculptures, paintings or jewelry that one has painstakingly collected over the years gets stolen or damaged. It can be further detrimental if one cannot recover one’s loss considering the investment made to acquire the collection. This is where a fine arts policy offered by insurance companies can come to one’s rescue.
Fine arts insurance is a specialized cover offered by insurance companies that offer insurance cover for paintings, artifacts, antiques, sculptures or jewelry and items of historical importance. Many believe that such items are covered under a home insurance policy or a traditional fire insurance policy. But this is not the case; they are either not covered or partly covered under such traditional policies. So it is necessary to have a specialized policy to protect such items.
A fine arts policy should ideally be on an all risk basis with agreed values.  The policy is basically of two types:
Collectors of fine arts
Gallery owners of fine arts

The difference in the coverage is on factors like itemized listing, value of the coverage, transit limits etc.  Often individual owners of collections are not aware of the value of their collection to get the appropriate coverage for it. In such a situation it would be wiser to get the items appraised by a professional appraiser. Many insurance companies offer the facility of an appraiser to assess the value of the works of art every few years.  This ensures that adequate insurance coverage is provided to the collection and will also provide the insured with documentary evidence for any future claims.
Fine arts insurance is offered by many insurance companies but it is important to know the general coverage and exclusions in such policies before opting for one.  Some policies cover the home collection of fine arts under the homeowner’s insurance policy.
Comparing prices of premiums of policies of different insurance companies is important before taking a final decision. A comparative analysis of the coverage and exclusions in the policies of different companies will help to make a wise choice. One should also be aware of the valuation method used by the company while settling a claim.
 We will help you choose the right policy to protect your valuable works of art. To know more about getting the right insurance policy based on your needs  and an unbiased opinion on the best options please visit or call us on +91 9848884363

Friday, 6 November 2015

Protect your patent with patent insurance

Before introducing patent insurance, let us first understand what a patent is- it is an exclusive right granted by the government to make, use or sell the patented products. In other words, no one other than the patent-holder can manufacture or market the patented products. Going by the definition, one might think a patent itself provides some sort of insurance but what then, is a patent insurance? Patent insurance is a protection against infringement of patents and the costs associated with it.
In these days of internet business and e-commerce, companies come up with new ideas, processes and applications. It is important to patent them and ensure that the copyright of these ideas are not infringed and at the same time make sure that one has not copied the ideas of others. If such situations arise then patent insurance can come to the rescue.
Patent insurance is of two types:
·         Patent liability insurance
·         Patent pursuance insurance
Patent Liability Insurance is a defensive instrument, which helps the insured fight an infringement lawsuit filed by a rival company.  Another term for it is ‘patent infringement defense insurance’ where the insurance company bears a part of the legal expenses incurred and/or the damages to be paid.
Patent Pursuance Insurance, is an offensive instrument which helps the insured fight against a patent infringing company. The other terms for this are ‘patent enforcement insurance’ or ‘offensive patent insurance’, in this case the insurer pays a part of the legal expenses incurred by the insured company. In simpler terms defensive policies covers a company if it is sued for violating a patent and offensive policies help a company to pay for legal expenses and other costs if it sues another party for violating a patent.

Another advantage of patent insurance products are a company can prevent a larger and financially strong company from infringing on its patents or will be in a position to sue a smaller, emerging company by being armed with a stronger litigation position.

Defensive patent insurance policies also help companies reduce the pressure to settle litigations owing to rising legal expenses in relation to lengthy patent litigations. On the other hand offensive patent litigations may attract investors to the company owing to the insured patents it has.
Getting a patent insurance can be a strategic move to avoid losses from patent infringement.

To know more about getting the right insurance policy based on your needs  and an unbiased opinion on the best options please visit or call us on +91 9848884363

Image courtesy-Shutterstock


Tuesday, 3 November 2015

Run off insurance

Run-off insurance is a type of insurance that protects against future loss.  A  run off  insurance is required because under a  "claims made" basis, insurance does not cover a business after the policy expires,  this puts the business in a precarious position if  claims are  made after the expiration date of the policy.
This type of insurance is required  because professional indemnity insurance is provided on a ‘claims made’ basis which means that it is the policy in place at the time that you become aware of the claim that provides the cover and not the policy that was in place at the time the work was undertaken.
Run-off insurance is usually provided by insurance companies that provided cover prior to closure.  New insurers are reluctant to provide a run-off policy for a company which they have not insured prior to closure. Though it is difficult to predict the closure of a business, companies should try and remain with the same insurer two to three years ahead of closure because this will help to get the policy at competitive rates from the same insurer.
The provisions of a run-off policy look identical to extended reporting period (ERP) provisions, there are differences, while ERPs are written for only one year while run-off policies can have a tenure as long as five years. Second, ERPs are mostly purchased when an insured changes from one claims-made insurer to another, runoff provisions are generally used when one insured company is involved in an acquisition or merger with another company. In such cases, the acquired company buys a runoff provision that covers claims associated with wrongful acts that took place prior to the acquisition but are made against the acquired company after it has been acquired.
In case a company is sold and the liabilities are taken care of by the acquiring company then there might be no need to purchase a run-off policy.
Run-off insurance is purchased by individual professionals to protect themselves from professional liabilities after they have ceased to be in service or have closed their business.  For instance a financial consultant may need to buy such a policy to protect him from charges of negligence, errors and omissions from clients he had served prior to his retirement.
A ‘run-off’ cover protects a company or professional from any claims made once the protection offered by a professional indemnity expires.

To know more about getting the right run-off  insurance policy based on your needs  and an unbiased opinion on the best options please visit or call us on +91 9848884363

Friday, 30 October 2015

Why do you need insurance?

When an individual is approached to buy an insurance policy, most often the initial reaction ranges from  ‘I do not need an insurance policy’ or ‘I am financially secure’ or even  ‘Nothing can happen to me.’ But the reality is today one is exposed to more risks than in the past whether it is to one’s life, health, assets or business.  Having an insurance cover to mitigate the risks one is exposed to has become mandatory at present.
But the general reaction when asked to buy an insurance policy is largely skeptical.  People are afraid to invest in an insurance policy because they believe nothing adverse can happen to them or their assets.  They view an insurance policy as a dead investment, paying regular premiums without the expectation of a return is not an attractive proposition to them.  Also the experience of a bitter claims refund process puts some people off from buying an insurance policy altogether.
Today insurance companies offer a range of products to suit different needs and the companies compete with each other to offer the best to the customer. While the customer may be king he is often confused on the kind of policy he needs. He is lost in the maze of policies presented to him.
This is where an intermediary or the insurance broker can be a great source of help and information.  A broker gives the customer a comprehensive picture of the kind of policy he requires, educates him on the benefits and drawbacks of each policy and advises him on the best policy that will meet his needs. The broker also makes the process of buying a policy much easier and even helps in the settlement process when a claim arises.  Moreover a broker is committed to help policyholders in the entire claims procedure as mandated by the IRDA.
The range of services offered by an in insurance broker simplifies the process of buying an insurance policy while at the same time educates and empowers the customer with the right kind of information he needs to get the best benefits out of the policy he has opted for.

To know more about getting the right insurance policy based on your needs  and an unbiased opinion on the best options please visit or call us on +91 9848884363