AIG to Start Kidnap,Ransom Insurance

Kidnapping business executives and relatives of high profile people, by criminals in return for huge sums of cash is emerging as one of Africa and Uganda's new and costly crimes. The offence brings tension and endless worries to the families and companies of those who have been kidnapped for ransom.

But in a move to enhance the comfort of business executives and wealthy families who are prone to the crime in Uganda, insurance firm, American International Group (AIG) will in about a month, unveil its Kidnap, Ransom and Extortion insurance policy. The product, which will be the first of its kind, will be extended to the country by AIG Uganda a subsidiary of the New York-based insurance group.

Speaking at meeting to brief selected business executives, and the press about the new product, Mr Alex Wanjohi the Managing Director of AIG Uganda said, the new cover "seeks to create peace of mind to individuals who by virtue of either their position or personal standing in society, they or members of their families, are prone to being kidnapped for ransom."

"We want to discuss with you this emerging risk so that you are aware because kidnap and ransom is increasing in the region and sometimes law enforcers are not efficient," he told the guests at the Sheraton Hotel Kampala, on Thursday.

Africa is the second continent in the world with the highest number of kidnap and ransom occurrences according to global kidnap and ransom statistics presented at the meeting by Mark Courtney a Consultant for Clayton Consultants, the company which has been contracted by AIG to provide rescue and advisory services to the beneficiaries of the scheme. Mr Courtney said, telecommunication, and oil engineers as well as Non-Governmental Organisation officials, are the leading targets of kidnappers in Africa and South America by criminals in the shs24 trillion ($13 billion) trade.

Keith Marshall, the AIG Regional Manger Africa Liabilities Group said the new cover will help the beneficiaries to have their ransom money reimbursed in the event that they fall victim, or in case of death of the kidnapped person. "This policy can compensate a company in case of financial loss incurred as a result of the kidnapping of a business executive," Mr Marshall said. The insurance cover and associated assistance like; rescue of victims and counselling of family members will be done by Clayton Consultants a partner of AIG Group. The new insurance cover will have to be approved by government before it can be launched to the public.

"I am not sure of when it will be approved but it should be within a month," he told this newspaper.

In a related development, the MD announced that AIG Uganda will change its name to Chartis Uganda insurance Company Limited beginning next month to align the local business with the AIG Group's restructuring process.

"All the current policies that you have with AIG Uganda will remain fully valid and continue to be underwritten by Chartis, until you renew your policies," he told the company's customers at the meeting.

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