More South Africans are said to be seeking insurance cover for kidnapping and ransom. Picture: Gerd Altmann/Pixabay
Kidnapping for ransom and extortion is on the rise in South Africa, and syndicates are no longer just targeting high-profile or wealthy individuals.
SAPS statistics for the first three months of this year show kidnappings in the country to have increased by 10,1%, with a total of 3, 641 cases recorded.
These crimes have been gaining so much prevalence in South Africa that specialist insurance companies offer kidnapping and ransom cover for individuals.
Ransom insurance, says Hermanus van der Linde, chief executive of IntegriSure Brokers, includes cover for the loss in transit of a ransom by means of actual destruction, disappearance, malicious abstraction, actual damage, or theft of the ransom. There are also products that provide cover for the cost of communication equipment, recording equipment, and advertising costs incurred in an attempt to resolve a kidnapping.
Specialist cover is available for a person’s peace of mind and covers the associated costs involved in kidnapping, virtual kidnapping, extortion, cyber extortion, hijacking, malicious detention, disappearance and a hostage crisis, he adds.
“Reasonable costs for cosmetic or plastic surgery which may be required to correct any permanent disfigurement sustained as a result of a kidnapping are also included in some of the kidnap and ransom cover products available.”
Van der Linde notes, however, that these types of insurance products should not only be viewed as providing cover for a ransom, but also assistance should you find yourself in a life-threatening situation.
“Kidnappings have become a prevalent source of income for syndicates as they prey on individuals who have access to cash. In most instances, the victim has been profiled as to their worth or the family’s worth, and the kidnappers ask for an amount they know they can get.”
Due to tough economic times, criminals have now expanded their market and no longer exclusively target wealthy or high-profiled individuals. Syndicates are now kidnapping middle-class people with the means or the support network to raise smaller ransom amounts.
Previously, companies would primarily insure their executives against kidnapping and extortion, particularly when they travelled to high-risk areas. Now the threat extends to entire families who are at risk of becoming potential victims, he says.
“Less affluent communities are also targeted as syndicates have come to realise that lower-income earners make for easy targets and do not draw media attention.”
Back in 2021 already, Justin Naylor, managing director of iTOO Special Risks, noted an increase in demand for this type of cover. The policy covers the costs incurred on responding to a kidnapping as well as the reimbursement of monies paid for a ransom. In terms of the response costs, it covers a team of expert consultants who respond 24/7 on a global basis to assist our clients in all aspects of the hostage situation or incident, including negotiation with kidnappers. Furthermore, he says the police covers the payment of ransom, which is in the form of reimbursement, so the family pays and then the company reimburses them the ransom payment.
The insurer offers three types of kidnapping and ransom insurance products, including:
Other specialist insurance companies in South Africa also offer various options for kidnapping and ransoms, although most seem to aim this cover at particularly at-risk individuals and executives. With the number of kidnappings of seemingly ‘ordinary’ people taking place though, it may be an option that more would want to consider.