KIDNAP, RANSOM AND EXTORTION INSURANCE IN SERBIAN INSURANCE MARKET

After kidnapping of the Serbian embassy staff ers in Libya, the subject of kidnapping, ransom or extortion occurring in high-risk areas all over the world, has become quite a topical issue. Another question is what high-risk areas are. From the aspect of occurrence of kidnap risk, these are not just war-ravaged countries, but also the countries with under-developed rule of law, high levels of corruption, poverty, etc. An interesting fact is that none of the various theories about the way and motives for kidnapping Serbian diplomats proposed by the government offi cials, journalists and analysts, including the conspiracy theories, touched upon the issue of kidnap insurance. Just how aware is our professional and general public of the possibility to insure a person against the risk of kidnap, ransom or extortion? That is the central focus of this paper. Who is the insured, what is the insured risk, what is the legal nature of kidnap insurance contract, what are the moral and legal principles of this insurance – are the questions to be considered in order to fully clarify the notion of kidnap insurance.

Key words: kidnap insurance, ransom and extortion insurance, fronting insurance, insurance parties, insured risk.