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Claims Scenarios

Claims represent the moment of truth for any insurance policy and never more so than in the incidents covered by AIG’s Crisis Solution.

Kidnap

The following are real examples illustrating how AIG’s Crisis Solution can respond to an incident. Two employees of an international construction company were abducted while returning to their work camp in Nigeria, despite the precaution of a police escort. The kidnappers demanded NGN100m (US$623k) for their release.

 

Response

The insured called the AIG crisis centre hotline and NYA deployed immediately to both Nigeria and the client’s headquarters in Paris. NYA assisted in negotiations and, after 20 days, secured the employee’s release for a payment of $125,000. AIG reimbursed the insured for $195,000, which included the ransom, medical and rehabilitation costs and payments to local officials to assist in delivery of the ransom.

Extortion

The head of a wealthy family in Mexico City received several calls demanding the disclosure of business details and a US$1m payment or the extortionists threatened to release information about the company and/or kidnap his eight year old daughter.

 

Response

NYA immediately deployed to the insured’s residence; they provided a complete risk assessment of the insured’s home and business, together with a protocol for handling future calls. NYA continued to monitor the matter, but no further calls were received.

Piracy

An international shipping company had one of its ships was hijacked by Somali pirates off the coast of Yemen. The pirates demanded US$50m to release the vessel.

 

Response

NYA deployed immediately to the insured’s corporate offices. After several months of negotiations, the vessel was released for a $9.5m payment. The insured’s policy had a $5m ransom limit, which AIG reimbursed to the insured. AIG also reimbursed the client an additional $2.75m for covered expenses.

Evacuation

Following an attempted coup, the US State Department issued a Travel Advisory Warning recommending the evacuation of all non-essential foreign nationals. This impacted our insured, an NGO operating throughout the Middle East.

 

Response

The insured contacted the AIG crisis centre hotline. AIG assisted in securing travel arrangements for six employees and their families, and reimbursed the insured for these evacuation costs.