FEATURE ARTICLE
"Taking the headache out of an overseas move."
TIPS & ADVICE
Kidnapping Prevention
PARTNER SPOTLIGHT
Kjaer Group: International Automobile Distributor
PRODUCT SPOTLIGHT
Security Coverage Products
ON A GOOD NOTE
A word from our clients.
|||| Feature Article
While international travel remains relatively routine, some assignees find themselves in volatile regions where safety and security become real concerns.
Below is an excerpt from the Clements article featured in the January 2005 issue of ERC’s MOBILITY magazine. It highlights international safety and security precautions, particularly kidnap and ransom statistics and coverage.
"TAKING THE HEADACHE OUT OF AN OVERSEAS MOVE" by Yan Bui
CONSIDER THIS -
A company executive living and working in Mexico City, Mexico, was driving home from the office one night when he was accosted at a stoplight by a group of local bandits. The gang forced him into their car and drove him to an undisclosed location. They contacted his family with a ransom demand of $300,000. Not knowing what to do, the family contacted the local police, as well as the executive's company. Because the company is not financially or legally obligated to pay the ransom demand, and local authorities were unresponsive, the executive's s family was forced to obtain a security consultant themselves, who then negotiated for the executive’s safe return. Although the executive was released unharmed, in the end it placed the family in dire financial difficulties, having borne the total costs of both the ransom payment and security consultant. Total cost: $425,000.
As the number of U.S. expatriates overseas has increased, the number of crimes committed against them also has intensified. According to the U.S. Bureau of Consular Affairs, political upheavals, acts of terrorism, and hijackings are only a few of the security issues threatening the safety of American citizens overseas. For the nearly half-million expatriates relocating to certain high-risk areas such as the Middle East, Latin America, and Africa, safety and security are of particular concern—and rightly so. Kidnappings in these regions are becoming more prevalent, and motives can range from political to economic. In fact, according to a report cited in Corporate Insurance and Risk, kidnappings amounted to about $500 billion in 2001.
According to Kroll Inc., a New York City-based risk consulting company, half of all kidnappings worldwide occurred in Latin America. A statistical analysis completed by the company revealed that Colombia ranked as the top country for kidnappings in 2003, with an estimated 4,000 cases. In Mexico, where—according to AARO.org—more than one million American expatriates live, an estimated 3,000 kidnappings for ransom and extortion took place. Argentina ranked third in Latin America, with an estimated 2,000 kidnappings reported in 2003.
With Mexico as the top destination for American citizens, coupled with the country’s ranking as the second most prevalent site for kidnappings, safety and security become a very real concern for expatriate assignees. It is further alarming that, according to studies conducted by the National Autonomous University of Mexico, more than 90 percent of kidnappings in Mexico go unreported, partly because victims fear reprisal and believe (in some cases correctly) that law enforcement officials are working with captors. Thus, the number of kidnapping, ransom, and extortion incidences are likely higher. In addition, targets have shifted from political officials to business professionals, including managers of foreign corporations. San Diego, Calif.-based MexiData.Info confirms that gangs are expanding their focus to nearly everyone, from the poorer to the middle to the wealthier classes.
Kidnapping, ransom, and extortion incidences can potentially cause financial hardship to all assignees who fail to secure the proper protection prior to relocation. Some multinational organizations and corporations secure kidnap and ransom protection for their international employees. However, individual short- and long-term assignees should not assume that such precaution has been secured. Assignees are able to secure personal kidnap and ransom protection as an individual.
According to American International Group, Inc. (AIG), New York, NY, an international insurance and financial services organization, kidnap and ransom insurance protection are generally written on an annual, one-year basis with premiums beginning at $1,000 per year (Note: this figure is subject to change.). Policies provide worldwide coverage, extend beyond the posted country, and will provide similar coverage for family members. Kidnap and ransom insurance is only written up to the individual’s net worth. Thus, a company executive worth $1 million will be able to only secure a maximum policy limit of $1 million.
Reprinted with permission of Worldwide ERC®, from the January 2005 issue of MOBILITY
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For those traveling to volatile regions where kidnapping occurs, there are useful tips and advice to help you avoid being a target:
- Dress conservatively. Avoid wearing clothing or accessories (including expensive jewelry) that would indicate wealth.
- Vary your routine. Change your path to and from work and home, but don’t veer into unsafe neighborhoods. Also change the time of day in which you leave for work or home.
- Avoid taking rides from unknown strangers or taxi drivers. If the taxi driver insists that your company sent them to pick you up, contact your employer directly to confirm.
- Be aware of your surroundings. Also, make sure you pay attention to suspicious or erratic behavior in strangers.
- Avoid traveling alone.
- If necessary, secure individual kidnapping and ransom coverage.
- Check the State Department’s travel warnings before reaching your destination.
For additional tips on how to stay safe while overseas, please consult the U.S. State Department’s website for travel warnings and other important information at www.state.gov.
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In 2004, Clements International and Kjaer Group joined forces to launch a unique combination of services to assist our international clients working in emerging markets.
Kjaer Group of companies has provided innovative transport solutions since 1962. Today, Kjaer Group is an international group of automotive companies (Kjaer & Kjaer, AutoTrading, AES and Motorcare) which provide unique solutions to the very diverse transportation requirements found in emerging countries around the world.
Kjaer Group focuses on ”Making a Difference” both internally through diversity in the workplace and externally by being an active partner and investor in the development of emerging countries. Kjaer Group is an active member of Global Compact and a reliable partner with the United Nations, Non-Government Organizations and other government bodies.
In 2003 and 2004, Kjaer Group was named Denmark's Best workplace by Fortune Magazine's worldwide survey. Kjaer Group is also awarded the Diversity prize by The Human Rights Institute in Denmark which signifies an accomplishment of diversity in the workplace.
“Our clients are already enjoying the benefits of the unique Clements/Kjaer Group partnership. The combination of outstanding insurance coverage offered by Clements and our ability to provide vehicles built to endure the challenging conditions our clients face in emerging countries, places our clients in reliable and safe hands” explains Lars Bo Lauritzen, C.O.O. of Kjaer Group.
To learn more about Kjaer Group, please visit www.kjaergroup.com.
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|||| Product Spotlight
In some parts of the world, kidnapping, ransom and extortion occurrences are a very real concern. Many multinational organizations provide kidnap and ransom (K&R) insurance for their senior executives and staff while working on assignments abroad.
A typical Kidnap and Ransom policy is activated when an insured falls victim to a:
- Kidnap
- Hijacking
- Threat to kill, injure, or abduct
- Detention, death or dismemberment
A typical Kidnap and Ransom policy provides coverage for:
- Expenses associated to a Crisis Management Team
- Payment and delivery of ransom following a covered event
- Legal liabilities associated with a covered event
- Travel expenses for immediate family members during crisis
Expatriates who wish to secure personal K&R insurance for themselves or their families can also purchase individual policies. Other security coverages such as War and Terrorism protection are also available. For more information on this policy, click here, or check with your dedicated Clements International Representative, info@clements.com or 1.202.872.0060.
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Here is what our clients have to say...
Dear Clements,
Fourteen years ago, on a recommendation from one of my instructors, I purchased insurance from Clements. From Beijing to Budapest, you provided me with superior service.
In 2001, I returned to service and without hesitation I turned to Clements for my insurance needs. Another few years have passed and I have absolutely no regrets in again choosing Clements International.
Warmest Regards,
Foreign Service Officer
Kuala Lumpur, Malaysia
Dear Clements,
I am writing you this letter to express my gratitude and thanks to Clements International.
Your company and my account executive have demonstrated commitment to the client and an excellent follow through on all matters relating to our policies. As a result we plan to expand our business to include additional policies with your company.
I want to congratulate you and Clements International again on your business ethics and commitment to offering a fine service to international schools.
Superintendent
International School
Israel
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