Insurance companies to be banned from covering the cost of terrorist ransoms

The government hopes banning insurance companies from covering ransoms will deter firms and families from paying kidnappers.

17:51 24 November 2014

UK Home Secretary Theresa May has unveiled a new counter-terrorism bill that will ban insurance companies from covering the costs of terrorist action. The government hopes that the move will deter firms and families from paying kidnappers’ ransoms.

Mrs May said that the package, which will be introduced to Parliament on Wednesday, was “properly considered.” It’s only one of several measures proposed in response to the terror threat.

Ministers maintain that paying terrorists ransoms encourages kidnapping adding that Islamic State militants are taking hostages to fund their operations.

Other measures which will be part of the Counter Terrorism and Security Bill are the following:

•    Cancellation of the passports of individuals who are suspected of being involved in terrorist acts so they can only return to the UK on the government’s terms.
•    Allowing authorities to force suspects to move to another part of the country.
•    Making it compulsory for public bodies to work to prevent terrorism.
•    Forcing firms to hand information to police to identify who was using a computer or mobile phone at a given time.