Cyber security insurance is the new age policy which tries to safeguard online users from online criminal acts. Net banking, social networking and online shopping are some of the daily activities performed by Indian users over the internet.
The increasing use of the internet is also increasing the users’ risk to become a victim of thefts, hacking, cyber stalking and digital fraud. Keeping all this scenario in mind, today the demand for cyber security insurance is going up.
This insurance can be classified under two headings:
Individual Cyber Security Insurance: It is meant for the daily online users. The policy covers risks associated with fraudulent activities like identity theft, malware attacks, cyber stalking, IT theft loss and social media liabilities.
Cyber Liability Insurance: It covers cyber risks associated with IT firms. It is an IT firm’s liability when it stores customers’ personal and financial data on the servers.
Cyber security insurance coverage can be classified under the following heads:
Identity Theft: Use, deletion or alteration of personal data stored on the computer:
Social Media Liability: Identify theft occurring on social media account.
Cyber Stalking: Using digital media to harass or frighten an online user.
Malware Attacks: This is a computer program which is received through texts, file transfer, downloaded programs or malicious activities on digital devices.
IT Theft Loss: Cyber intrusion in the computer which led to unauthorised payment to third parties.
Phishing: Unauthorised access to usernames, passwords and credit card details.
Email Spoofing: Forgery or manipulation of email headers so that the recipients understand that the email is from the actual source.
Media Liability Claims: Unintended publication or broadcast of any digital content as a result of cyber-attack.
Cyber Extortion: Threat to cause privacy breach, cyber attack or data breach.
Privacy & Data Breach by third party: Unauthorised disclosure of personal data.
Applying for cyber security and getting the coverage is an easy process. Let us understand how it works:
Anyone above the age of 18 years can buy the cyber security insurance policy.
Cyber security insurance has a quick and easy claim settlement process. Let us look at the steps to make claims:
After filing the claim for cyber security insurance, the insurance company usually takes approximately 30 days to make the payment under the claim.
Cyber security insurance safeguards online users from risks arising out of multiple unpleasant circumstances. However, in certain cases, you cannot claim the insurance. Some of the exclusions under the policy are:
Many insurance companies in India offer cyber security insurance at a reasonable premium. The sum insured can range from Rs 1 lakh to Rs 1 crore. Some of the companies in India offering this insurance are:
Before purchasing a cyber security insurance, it makes sense to understand certain points that will help in gaining the maximum out of the insurance.
Increasing cases of cyber threat is now forcing organisations to take steps to protect themselves. One such step is to purchase a cyber security insurance. Looking at the benefits, many Indian firms are now opting for cyber security insurance. Some of the advantages of purchasing cyber security insurance are: