According to the most recent statistics, Africa has experienced a significant increase in kidnappings in recent months, with June and July 2021 witnessing a 39% increase in the number of victims compared to previous months. Perhaps one of the most prominent cases of kidnapping this year was when Islamic militants attacked the northern Mozambican town of Palma in March and surrounded a hotel where some 200 foreigners and Mozambicans had taken shelter.
With South African businesses increasingly looking to further expand on the African continent, Dave Honeyman, Business Head: Accident & Health/Motor Fleet solutions at SHA Risk Specialist, a division of Santam, says that there has been a move towards expatriating staff to foreign countries to help set up the new business hubs. “This is accompanied by a host of risks - one being potential kidnap and ransom. Employees are often at greater risk of falling victim to opportunistic abductions when traveling to cities that they are unfamiliar with and may be at risk of being snatched by kidnappers who believe they can extort money from their families and employers.”
In addition to this, Honeyman says that the abduction of school-aged children is also becoming increasingly prevalent. “It is believed that there have been numerous incidents where schools and parents have been victims of extortion following the abduction of a child. When faced with the choice of saving a life, there is no sum too high. Coming up with the ransom funds can, however, be financially crippling, this is why we strongly urge organisations (including schools) to familiarise themselves with kidnap and ransom insurance products.”
Honeyman highlights that the real value behind having kidnap and ransom insurance is not only having the policyholder reimbursed for the cost of the ransom, it also provides unlimited access to a team of specialised response consultants. These are highly trained and qualified individuals who have primarily had careers in the military, police, intelligence and diplomatic services. The consultants provide valuable kidnap response advice services, as well as dedicated support to secure the hostage’s safe release.
“Proper management of a kidnapping by highly trained individuals is essential to protecting the life and well-being of the victim, as well as the organisation’s assets. With that said, there is one caveat to keep in mind: when companies take out a kidnap and ransom insurance policy, there is a clear condition in the policy that obliges the insured company to take reasonable steps to restrict knowledge of the insurance as far as possible. In other words, the insured organisation should ensure that only key employees are aware that the cover is in place.”
In addition to the reimbursement of ransom money, kidnap and ransom insurance also covers the destruction, loss, confiscation, or wrongful appropriation of money in transit to the kidnapper. It also reimburses the costs incurred in attempting to mitigate physical disfigurement or emotional harm suffered as a result of a kidnapping as well as judgements and legal expenses incurred by the insured company due to legal action taken by the victims or their families.
“Whilst kidnapping cannot be prevented, businesses can secure the appropriate insurance cover to alleviate the damage caused and assist both the hostage as well as their family on the road to recovery,” says Honeyman.
“The sad reality is that kidnappings are on the rise in Africa and South Africa, and business owners, school administrators and parents alike, need to be prepared to deal with it in the correct and safest manner. Businesses and schools have a responsibility to those in their care, and this cover should be considered as part of every organisation’s overall insurance armoury,” he concludes.
Dave Honeyman
Business Head: Accident and Health/ Motor Fleets
