By bringing the world closer together, the internet opens up a variety of opportunities for everyone. The internet has been a boon for humanity in regards to connectivity, business, and other forms of interaction.
The rise of cybercrime has also been attributed to this increase in its reach. It does not matter whether you are a regular person or a big business corporation; you are all at risk. The threat of cybercrime continues to rise as India’s economy digitizes and its reliance on technology increases. The best way to protect yourself from these crimes is to invest in cyber insurance. Here is more information on this policy.
What is cyber insurance?
An insurance policy that covers financial losses as a result of a cyber-attack is known as cyber insurance. Business houses and individuals can purchase this kind of insurance to cover the financial costs of restoring lost data and reimbursing their customers for losses caused by cybercrime. Liability coverage for cyber insurance covers third-party claims, including lawsuits caused by data breaches.
The role of the government
India has been taking steps to increase awareness about cyber insurance and encourage businesses and individuals to buy it. As a result of the increasing number of cybercrimes against financial institutions, the Reserve Bank of India has made cyber insurance mandatory for banks.
As well as setting up a national cyber-insurance pool, the government also announced plans to provide coverage for small and medium-sized businesses, which may not have the resources to do so.
Including & Excluding :
There are many cyber threats that are covered by cyber insurance, including:
- Fund siphoning
- Fraudulent identification
- Stalking or bullying online
- Shop online
- Breaches of data privacy
The following are excluded:
- Intentionally harmful actions
- Information related to the incident was not disclosed properly
- Damages or injuries
- An electrical or mechanical failure results in the loss of data
- Engaging in illegal activities
- Dealing with funds and currencies that are not regulated and authorized by the central bank
How to file a claim?
Here is a five-step process for initiating a cyber insurance claim:
- As soon as you become aware of a cyberattack, you should notify the insurer.
- It is likely that the insurer will send an investigator to investigate the type of attack and breach that might have taken place in the event of a claim. It is through this that they can understand how serious the attack was.
- The insurer may send a cyber security expert if it feels that a cyber attack has been committed with severe consequences.
- The policyholder is briefed on the details of the attack and is informed on the possible solutions he or she can take in order to deal with it.
- The insurer will compensate the loss according to the solution that has been found.
*T&C apply as per the standard rules and regulations
Future of cyber insurance
In order to meet the demands of the growing number of businesses and individuals who are becoming aware of the risks and consequences of cybercrime, the demand for cyber insurance is expected to increase rapidly in India.
There has been an increase in the number and complexity of cyber-attacks due to the growing use of technology and the internet, as well as the digitisation of the economy, resulting in an increase in the number and complexity of cyber-attacks, which makes it more important than ever for businesses and individuals to protect themselves.
There will also be an increase in its demand due to the implementation of the General Data Protection Regulation (GDPR) and the Personal Data Protection Bill (PDPB) in India, which are both designed with the purpose of protecting personal data and privacy. There are no exceptions to the standard terms and conditions.
This market for general insurance coverage is still at a relatively nascent stage, but it is predicted that in the next five to ten years, it will continue to grow rapidly. There has been a lack of awareness and understanding of it among businesses and individuals that has deterred the market from growing to its full potential.
There is a growing awareness of cybercrime in recent years, and as the government promotes its adoption, this situation is gradually changing as more people become aware of the risks and consequences it can have. The best way to understand the importance of this type of insurance is to speak with your insurance advisor as well as a cyber security expert so that you can better comprehend how it safeguards the private and public data that pertains to you and people who rely on you.
The solicitation is related to the subject matter of insurance. We recommend you read the sales brochure/policy wording carefully before concluding a sale in order to find out more information about the benefits, exclusions, limitations, terms, and conditions of the plan.