Cyber Insurance: Protecting Against the Increase in Cyber Crimes

The internet has brought the world closer together, and it offers new opportunities for everyone. The internet is a great tool for connecting, doing business or interacting with others. This increase in its use has led to an increase in cybercrime. Everyone is at risk, from the average person to large corporations. Cybercrime is a constant risk as India continues to digitalise its economy. It is essential to invest in cybersecurity in order to protect yourself from these crimes. Cyber insurance Here is some more information about this insurance policy.

What is cyber insurance ?

Cyber insurance covers the financial losses that are incurred as a result of a cyber attack. This insurance protects individuals and businesses from the financial effects of cybercrime. For example, the cost to restore lost data or reimburse customers for losses. Cyber insurance covers third-party claims such as lawsuits arising from data breaches. *

What is the role of government

Indian government is encouraging businesses and individuals to buy cyber insurance. Due to an increase in cybercrimes, the Reserve Bank of India has made it compulsory for banks to buy cyber insurance. The government also announced plans to create a national cyber insurance pool that will provide coverage for small and medium businesses who may not have enough resources to buy their own coverage.

Exclusions and Inclusions

Cyber threats are categorized under Cyber insurance coverage :

1. Money-siphoning
2. Theft or theft of identification
3. Online stalking or bullying
4. Online Shopping
5. Breach of data and privacy

Exclusions include:

1. Intentional actions
2. Information about the incident not being disclosed properly
3. Injury or damage
4. Electrical or mechanical failures can cause data loss
5. Engaging in illegal activities
6. Dealing with funds and currencies not regulated and authorized by the central banks

*Standard Terms and Conditions apply

How do I file a claim for a refund?

Here are five steps to start the Cyber insurance claim process :

1. Inform your insurer if a cyberattack occurs.
2. An investigator will be sent by the insurer to determine what type of breach or attack may have occurred. The insurer can then determine the severity of an attack.
3. The insurer will send a cyber-security expert to the scene if necessary, depending on the severity.
4. The policyholder receives a briefing on the details of the incident and possible solutions.
5. The insurer will pay compensation based on the solution.

*Standard Terms and Conditions apply

Future of Cyber Insurance

Cyber insurance is likely to become more popular in India as businesses and individuals begin to understand the risks and potential consequences of cybercrime. As a result of increasing internet usage and technology, and digitisation in the economy, cyber attacks have increased in number and complexity. Businesses and individuals must protect themselves more than ever. * The implementation of the General Data Protection Regulations (GDPR) as well as the Personal Data Protection Bill in India will increase demand for this service.