General insurance What will be the fate of the insured and the insurance company?

[Mataracy]

I brought out this very question because its very rampant this days that there is kidnappers and bandits kidnapping people.

So in the case where the insured person is kidnap and the kidnappers ask for Ransome that is very huge. Take for example when somebody who has taken life policy not so long found victims of kidnapper's and they started asking for Ransom let say $5000 and the insured premium is not more that $500; what will now be the fate of Insurance Company and the Insured at this moment.

Did you think that Insurance company will paid the ransom for the insured and if they did ;they will be running at loose because they are profit making organisation and not charity organization. And if they refuse to pay will the Insures ever has trust on that insurance company ?
What is your take on this question?

 

[btaliat]

The fact is that life insurance company only cover depending on the types of the life insurances, the expenses after death or serves as saving. But it doesn't answer for ransom. Insurance pays compensation for any damages not ransom. I am afraid to tell you that the insurance company may not be responsible in this case.

 

[Mataracy]

The fact is that life insurance company only cover depending on the types of the life insurances, the expenses after death or serves as saving. But it doesn't answer for ransom. Insurance pays compensation for any damages not ransom. I am afraid to tell you that the insurance company may not be responsible in this case.

Ha.. But I think insurance mean protecting the life of there insured whenever the accident occur and being kidnapped is part of of the accident.
I believe the reason why many people use to take up the policy us that they believe that should in cade any incident happen the insurance company will help them and it normal back. Likewise this is life of the insured at stake now. Would insurer fail to take up its duty now?

 

[Mandy96]

It’s obvious that the both parties made a contract agreement between themselves and what they hope to achieve is the successful business deal. The insured get to be compensated when it is needed while the insurance company get to their job by backing up the client as long as the premiums are all intact

 

[Mataracy]

It’s obvious that the both parties made a contract agreement between themselves and what they hope to achieve is the successful business deal. The insured get to be compensated when it is needed while the insurance company get to their job by backing up the client as long as the premiums are all intact

You are very correct bro. That's what am saying that I think the insurance company do not have any option than to rescue the insured out of the den of the kidnappers since the contract is intact and it was not done intentionally by the insured I believe that before any action will be taken by the insurer many investigation might have been taken place and after then they need to come to the aid of there client .

 

[Nite]

I have read something called kidnap insurance, which is supposed to protect people from kidnapping, hijacking and extortion. However, it's clearly not appropriate for everyone. Basically, it's for high net worth people, like famous personalities, financial institutions, NGOs, and rich travellers because they tend to travel a lot to foreign countries.

 

[Good luck]

The gain or benefits of an insurance company is the premium being paid by the insurer.The insurance company has various policy ranging from car to property and life insurance. The insurer gets something from the insurance company by taking care of any emergency or any situation that may warrant the company to pay the person that is involved.

 

[Wisdom01]

They have certain agreement they would make with you before you sign the deal of life insurance policy with the insurance company , if it covers kidnapping then you would get cover for it , but the mostly common one is death , if the person dies he or she will get the full benefits

 

[Chibson]

I think think there is any insurance policy that states that the insurance company will pay for a kidnapped victim. But anyway that will be possible because different insurance companies have different policies. In such cases, the insurance company may be at a loss because the insurer can fake his kidnap in order to get money.

 

[Alexandoy]

I am not sure but I think the insurance company has nothing to do with the ransom. Even if the insurance policy belongs to the hostage the ransom is the concern of the family of the hostage. When the hostage is killed then that is the time that the insurance company will come in to check on the claims and to pay when there are no issues.

 

[Phabbyfundz]

The real problems of the society today and even individuals is the lack of proper information and most individuals don't even take time to make any further research about insurance policies and so they are still living in the dark. There available insurance policy known as kidnap and ransom insurance policy that cover for cases of kidnappings.