- Date : 07/12/2021
- Read: 3 mins
Cyber insurance is the new-age risk protection that you may need. Find out how it can safeguard you.
Owing to the COVID-19 pandemic, the whole world seemed to go digital. With work-from-home (WFH) gaining prominence and people’s online presence seeing a huge boom, the extent of digitalisation is only poised to increase. Although digitalisation is undoubtedly a boon, increasing instances of internet fraud and cyber attacks are causing us rampant economic and personal damage.
Insurance is the survival or remedial cover you take when you are at any financial risk. So, the Insurance Regulatory and Development Authority of India (IRDAI) has brought about a model cyber insurance policy to safeguard the end-users of the cyber world. After IRDAI came up with the plans, several leading general insurance companies started offering cyber insurance to individuals, which was previously limited to corporates only.
What is the cyber insurance coverage?
Cyber security insurance is an insurance policy that may lower the financial risk caused due to any cyber threats while doing online financial transactions. A cyber insurance plan provides coverage against threats such as:
- Malware attack
- Cyber extortion
- Identity theft
- Email spoofing
- Media liability claims
- Identity theft on social media
- Privacy breach and data breach by a third party
It is not uncommon for senior citizens to be afflicted by such fraud emails and messages as they are less aware of the virtual world. But even the tech-savvy can fall prey, given that such emails and calls can look or sound deceptively genuine. In the worst-case scenario, the fraudsters may be equipped with your personal details to such an extent that you are susceptible to phishing even after being alert.
Cyber security insurance covers give you protection against such financial losses by:
- Paying the cost of data restoration in case of malware attack or unauthorised financial transactions. Your family members, too, can be insured under the same cover.
- In case of identity theft on social media, these covers pay for the expenses of summoning the fraudsters for harming your reputation.
- In case of cyberstalking or extortion, you can get a reimbursement on the legal fees you paid for the cases against the stalkers.
- Depending on the policy you choose, you may even get reimbursed for medical bills that you incur for mental health consultation due to trauma caused by such crimes.
If you have decided to go for cyber insurance in India, you must be aware of the fine print and realise what is payable and what is not. However, reimbursements have some limits. For instance, if you notify a complaint with the cybercrime cell many months after it happened, the insurance company may reject your claim.
Depending on your financial activities in the online world and your online presence, you can weigh your options regarding a cyber insurance cover. It is safe to assume that the rampancy of cyber attacks will only increase as the world gets more and more digitised. So eventually, cyber insurance for us may be a question of ‘when’ rather than ‘if’.