In India, under cyber insurance for individuals, which of the following benefits are generally covered, in addition to payment for the loss of funds and other benefits? Cost of restoration of the computer system in case of malware disrupting access to one’s computer Cost of a new computer if some miscreant wilfully damages it, if proved so Cost of hiring a specialized consultant to minimize the loss in case of cyber extortion Cost of defence in the Court of Law if any third party files a suit Select the correct answer using the code given below: 1, 2 and 4 only 1, 3 and 4 only 2 and 3 only 1, 2, 3 and 4

In India, under cyber insurance for individuals which benefits are generally covered

In India, under cyber insurance for individuals, which of the following benefits are generally covered, in addition to payment for the loss of funds and other benefits?

Cost of restoration of the computer system in case of malware disrupting access to one’s computer
Cost of a new computer if some miscreant wilfully damages it, if proved so
Cost of hiring a specialized consultant to minimize the loss in case of cyber extortion
Cost of defence in the Court of Law if any third party files a suit

Select the correct answer using the code given below:

1, 2 and 4 only
1, 3 and 4 only
2 and 3 only
1, 2, 3 and 4

Answer: B

Explanation

Cyber insurance for individuals policies are designed to cover expenses related to post factor actions of a cyber-attack. Such as, the cost incurred during the prosecution process and defense costs are paid by the insurance company relating to the types of cyber risks mentioned in the documentation of the policy. Other costs such as financial losses, online loss of money suffered by the policyholder due to cyber-attacks are also covered in the policy up to the sum assured as mentioned in the policy.

Expenses incurred for counseling treatments post a cyber-attack is also paid for including damages against third party liabilities and restoration costs. It also takes care of consultant fees, court expenses, and legal fees concerning the cyber-attack. So (1), (3), and (4) are covered.

What is not covered?

If the attack was intentionally and deliberately done, the policy will not pay any claim. Insurers do not cover any fraudulent, dishonest or malicious act. These policies do not provide any cover for any prior actions of the attack that the policyholder has faced before buying the policy; nor do they cover for personal data or lost pictures in the policy.

The insurers also take measures to avoid any cyber-attack to their customers by prompting for backing up their data, updating anti-virus and having a proper set of passwords. If such measures are not taken properly, in case of a cyber-attack, your claim can be jeopardized.

Exam Year: 2020