What Does a Cyber Insurance Policy Cover in India?

Cyber insurance in India is gradually becoming the need of the hour. The cases of online fraud and phishing are on a rise. During the pandemic, a rise in digital payment has been seen leading to digital and cyber fraud.

Why Cyber Insurance is the Need of the Hour?

Financial safety against any type of cyber fraud is important. A cyber insurance policy offers cover against any financial loss via malware or phishing attack. A cyber security breach is the cause of concern for every individual. As per the National Cyber Security Agency, there is an increase in the cyberattacks on the networks and routers of personal computers. One of the key reasons behind it is that a major population has been working from home since the outbreak of COVID-19. The exposure to cyber risk is increasing as we are getting more exposed to the digital world. Thus, we cannot deny that there is a dire need for Cyber Insurance for individuals.

What Should a Cyber Insurance Policy Cover?

Here is a rundown of some of the covers that an individual cyber insurance policy offers:

1. Cyberstalking: Cyberstalking is a crime wherein someone stalks or harasses a victim using any digital or electronic means like an email, social media, etc. Most of the time, cyberstalkers take the benefit of anonymity using the internet to harass or stalk. A cyberstalking cover takes care of the incurred costs for the prosecution against the third party.
2. Cyber Extortion: Under cyber extortion, the hackers hold the data, computer system, or any other important information until their demands are met. The hackers hold the data as a hostage and in return demand money. Sometimes the hackers give threats to leak data on the public domain. Having this cover will take care of the costs incurred against the third party.
3. Identity Theft: It is an act of obtaining an individual's personal/ financial information. The information includes name, contact number, debit/credit card number or bank account number, etc. Identity theft has adverse effects leading to fraud. A fraudster might use such information and gain access to the bank accounts, file a tax refund, apply for loans or cards, and so forth. The cover takes care of the various expenses such as the incurred prosecution and transportation costs of the case.
4. Malware Attack: It is one of the common cyberattacks wherein malicious software executes an unauthorized action on the system of an individual. A malware attack includes various types of attacks like command and control, spyware, and so forth. Having this cover takes care of the restoration expenses of the computer system that incurs due to the malware damage.
5. Phishing: It is an attempt to trick into providing personal or financial information simply by pretending to be from the legitimate entity/person. It usually happens via emails/phone calls, instant messaging disguised as legitimate communication from sources. The Bajaj Allianz Individual Cyber Insurance Policy not only helps to cover the monetary loss but also enables to fight back.

We are living in the era of digitalization, cyber risks and threats will be there. Hence, having cyber insurance coverage is important for optimum protection. October is observed as Cybersecurity Awareness Month. The internet has become an important aspect of our lives so our responsibility is to keep our online lives secured. In case, anything unfortunate happens, inform the nearby police station and bring it to the notice of the respective authorities.

The Bottom Line

It is important to understand that every insurance policy has a defined set of inclusions and exclusions. Hence, read the policy wordings carefully before signing below the dotted lines. Do not wait for an eventuality to take place, choose an individual cyber insurance policy and safeguard yourself from potential cyber risks. #BeCyberSmart