Each year, millions of dollars' worth of fraud is committed as a result of internet scams that target victims using internet platforms. And the numbers are rising as internet usage rises and sophisticated cybercrime methods are developed. Internet fraud is carried out by cybercriminals using a range of attack routes and tactics. This comprises harmful software, fake websites used to steal user data, and complex, extensive phishing schemes.
The Insurance Regulatory and Development Authority (IRDA), the nation's top insurance regulatory body in collaboration with insurance companies have introduced cyber insurance policies that provide coverage against financial loss due to cyber fraud in order to ensure financial safety.
What is a cyber insurance cover?
A corporation or an individual policy holder may be protected by cyber insurance coverage from financial damages resulting from network-based events. Its purpose is to shield policyholders from the consequences of cyberattacks and risk exposure by paying out costs after a cyberattack or security breach has taken place.
A portion or all of the 11 cybercrimes specified by IRDAI are presently covered by the individual insurance policies, which range in price from Rs.10,000 to Rs. 5 crore. The majority of insurers also provide customized policies that may be tailored to the insured's risk tolerance and financial situation, and one can select the exact offences they want covered. You may also add IT advice and mental health counselling for an additional fee.
Which services are included in the insurance coverage?
- Personal cyber insurance plans provide coverage for losses resulting from cyber incidents or third-party hacking of bank accounts, credit/debit cards, and/or mobile wallets.
- The costs of finding and bringing the cyber stalker to justice are reimbursed.
- Costs associated with data restoration after malware-related loss are compensated.
- It offers defence against financial extortion by online crooks. The cost of prosecuting offenders is also reimbursed.
- Defence costs, including those associated with prosecuting the perpetrators, are covered for claims made against insured by third parties or impacted parties owing to hacked social media accounts.
- Financial damages brought on by phishing attempts, including costs associated with pursuing offenders, are covered.
- Online purchases made by third parties fraudulently using a bank account, credit or debit card, or an e-wallet are protected.
- Financial losses brought on by a fake email attack are compensated, including costs associated with holding offenders accountable.
- Legal defence costs, including those associated with prosecuting offenders and travel expenses, are paid for claims made against an insured by a third party or an affected person as a result of fraud or identity theft.
- Defence expenses and losses resulting from third-party data breach and/or privacy violation claims are covered.
However, losses from cryptocurrencies, gambling, dishonest behavior or unauthorized data gathering, accessing blocked websites, the expense of updating equipment, and a number of other activities are not covered by the insurance.
An individual must be older than 18 to acquire a cyber insurance. Such insurance plans are provided by reputable private insurance companies like HDFC, Bajaj Allianz, ICICI Lombard, and others. Certain plans, however, require a minimum age of 21 to be purchased.