Firm offers ₹80 LPA CTC at IIM placements… with ₹40 lakh kidnapping insurance

An interesting anecdote shared podcaster Kushal Lodha reveals the huge gap between the total package offered companies vs what employees get in hand. Last year, during a conversation with entrepreneur Aman Dhattarwal, Lodha revealed that an African company came to an IIM for placements and offered a package of ₹80 LPA on paper. The catch? Exactly half of that ₹80 lakh was earmarked as “kidnapping insurance”, and employees would only earn ₹40 lakh as fixed income.The company’s ‘kidnapping insurance’ component was revealed Kushal Lodha during a podcast with Aman DhattarwalFirm offers kidnapping insurance“This CTC vs in-hand salary is a sort of a scam, I feel,” said Kushal Lodha during the podcast. He went on to elaborate on this point citing the example of a company that came to IIM Calcutta for placements with an attractive package of ₹80 LPA.While the package sounded impressive on paper, IIM students soon realised that they would not actually be earning ₹80 LPA.The company, based somewhere in Africa, had set a “kidnapping insurance” component in the CTC. This meant that should their employee be kidnapped, the company would pay up to ₹40 lakh as ransom to the kidnappers.(Also read: UAE-based Indian businessman kidnapped in Kerala, rescued. Ex-employee among accused)“This company came to IIM Calcutta offering ₹80 lakh per annum. And this was an Africa-based company. Apparently, kidnappings are very common there,” Lodha told Dhattarwal during the interview.“So out of that ₹80 LPA, ₹40 LPA was fixed. The other ₹40 lakh was kidnapping insurance… which the company would pay as ransom if the employee was abducted,” Lodha revealed.