KIDNAPPING RISKS

Nelson Evening Mail, Volume LXVI, 29 July 1932, Page 7

KIDNAPPING RISKS

INSURANCE ACCEPTED LLOYD’S CHARGE 2 PER CENT. MINIMUM COVER, £IO,OOO ~ V SAN FRANCISCO, 6th July. Sailing on the more or less uncharted sea of underworld tactics in kidnapping, for a fee, and ransom demands, Lloyd’s, of London, are now willing to take a chance on financial losses through such plots and are prepared to guarantee replacement of cash expended to obtain a victim’s release. Announcement of the new. and unusual channel of coverage came from N.W. Aronson Company, Los Angeles representatives of the English firm, with an explanation of costs, rules governing payment and details to be carried out should an acute fear of kidnapping disturb the financial equilibrium. The rate is 2 per cent, per annum. The minimum about of coverage is 50,00.0 dollars, but there is no high limit. A figure of 100 million dollars was mentioned. The coverage is arranged for the whole family. The underwriters guarantee to pay the amount demanded by the kidnappers, less 10 per cent, in case the figure is within that bought and paid for.

Here is how it works: You have a policy for 50,000 dollars covering all members of the family, for which you are paying 1000 dollars yearly. Along come the kidnappers, taking the youngest. A ransom is set at 35,000 dollars. •You deal with the abductors, sending them the amount. Then on proof of the return of the child and proof of the payment, Lloyd’s sends you a cheque for 31,500 dollars. As a result the kidnappers have 35,000 dollars, Lloyd’s lose 31,500 and you lost only 3500, plus the annual 2 per cent. However, the child must be returned and roust be well and healthy, or Lloyd’s pays nothing. The same rules apply in case it is father that spends time in the kidnapper’s clutches. If found dead or if lie is never found, Lloyd’s wins.