Stay cyber safe with insurance

Hyderabad: With the rise of cyber fraud cases in India every year, it has become necessary for individuals and companies to opt for cyber insurance coverage. Cyber insurance policies, introduced by the Insurance Regulatory Development Authority of India (IRDAI), help people manage their cyber risks during unforeseen circumstances. It protects an individual or an organisation […]

Hyderabad: With the rise of cyber fraud cases in India every year, it has become necessary for individuals and companies to opt for cyber insurance coverage. Cyber insurance policies, introduced by the Insurance Regulatory Development Authority of India (IRDAI), help people manage their cyber risks during unforeseen circumstances.

It protects an individual or an organisation from a variety of risks such as online financial fraud, ransomware, cyberbullying, malware intrusion, data fishing, and other kinds of fraud – by covering costs associated with cyber attacks.

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In addition to covering costs incurred during the investigation process, it also covers service charges and court charges. However, the insurance policy doesn’t cover the loss or damage caused due to the sheer negligence of an individual and sharing of sensitive information with others. It may also not be possible to claim insurance for damages caused while trying to gain access to restricted sites, collecting unauthorised data, and other fraudulent conduct.

Bajaj Allianz, ICICI Lombard, HDFC ERGO, Future General, and SBI General Insurance are some of the companies that are offering cyber insurance policies in India. The premium may cost anywhere between Rs 700 to Rs 3,000 for a policy of Rs 1 lakh. Any individual aged 18 or above can opt for cyber insurance.

To raise a claim, an individual needs to file an FIR with the police and the respective State Cyber Cell Department. At the same time, the policyholder should also report the crime to the bank concerned or relevant entity. The policyholders can also register their complaints at cybercime.gov.in or by calling the round-the-clock national helpline 1930. The documents required may change from case to case.
Moreover, it is important to inform the insurer at the earliest, mostly within 24 to recover your lost money or data.