Hyderabad: With technology getting deeply integrated into people’s lives, the risk of sensitive personal data being compromised has never been higher. With people depending on various Internet-based digital tools for shopping, entertainment, financial transactions, data storage, education and social interactions, and at a time when work-from-home has become the new normal, cyber security has become a key issue for individuals, making personal cyber security insurance almost an essential.
On 19 June, the Indian Computer Emergency Response Team (CERT-In) warned that malicious actors were expected to launch a large-scale phishing campaign against nearly two million Indians under the pretext of dispensing government funds for COVID-19 related initiatives. The Galwan Valley dispute has also resulted in 200% increase in cyberattacks from China towards India since the beginning of June, according to a recent report by cyber threat intelligence firm Cyfirma.
In such times, it is an individual’s liability to protect his/her hard-earned money, social reputation and mental health, and a cyber security cover could serve some of that purpose.
What is a personal cyber insurance policy?
A personal cyber insurance policy, eligible for individuals above 18 years of years, is designed to help people mitigate cyber risk exposure by offsetting costs involved with recovery after a cyber-related security breach.
Who needs to buy personal cyber insurance?
Individuals involved in any form of online payment transactions at any digital platform (for shopping, subscriptions, bill payments, money transfer etc), use of payment gateways, use of cloud services, use of home-assistance or connected devices etc, should definitely consider buying cyber insurance in India.
Which insurers provide personal cyber insurance policies?
The three major private insurers in India that provide personal cyber insurance include HDFC ERGO, Bajaj Allianz General Insurance and ICICI Lombard General Insurance.
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What is covered?
The coverage usually includes protection against identity theft, cyber-bullying, cyber extortion, malware intrusion, financial loss due to unauthorized and fraudulent use of bank account, credit card and mobile wallets. Most of the policies also covers legal expenses arising out of any covered risk. All the expenses incurred in restoring digital reputation with means of removal of the harmful publication from the internet can also be claimed under some policies.
What is not covered?
Some of the common exclusions under the cyber insurance policies include dishonest and improper conduct, bodily injury/property damage, unsolicited communication, unauthorised collection of data, immoral/obscene services.
Policies also do not cover claims that have arisen due to facts or circumstances that existed prior to the commencement of the policy. Claims in connection with loss or damage caused by the order of any government authority is also not usually covered.
What’s the cost of personal cyber insurance?
Premium rates of personal cyber insurance start at around Rs 600 for every Rs 1 lakh of sum insured:
- E@Secure by HDFC ERGO provides sum assured of Rs 50,000 to Rs 1 crore for premiums starting around Rs 1,500 per year.
- Cyber Safe by Bajaj Allianz General Insurance charges premiums starting from Rs 700 to nearly Rs 9,000 a year for a sum insured of Rs 1 lakh to Rs 1 crore.
- The Retail Cyber Liability Insurance policy by ICICI Lombard General Insurance levies premium of Rs 6.5 to Rs 65 per day for the sum insured ranging from Rs 50,000 to Rs 1 crore.
Points to remember while buying the policy
Individuals should match the policy coverage with their needs and should keenly check the inclusion and exclusion sections to ensure their needs are being met by the policy. Also check for family floater options as it covers your spouse as well as children with no minimum age limit.
How to buy?
Most of these policies can now be bought online through the official websites of these insurers. Fill and submit the policy proposal documents, along with the required documents, and the policy will be structured and mailed over to you on your registered email ID. Alternatively, you can also visit at the registered offices of these insurers for physical applications.
(ETV Bharat Report)
