Online Hacking Becomes More Invasive: Insure Yourself against Losses Today!
Published On Sep 11, 2019, Updated On Oct 20, 2020
As per a survey by Symantec Norton, nearly 978 million individuals across the world fell prey to cybercrimes in 2017, shares Partner at Deloitte India, Jayant Saran. But in most cases, people fail to understand the extremely serious consequences that these crimes can bring.
Cyberinsurance is an old phenomenon when it comes to securing businesses, but the concept is new when it comes to an individual. The first general insurance company in India to launch this policy was Bajaj Allianz. The Individual Cyber Safe scheme offered by Bajaj Allianz provides cover for data restoration, financial losses, and defence or prosecution costs pertaining to cyberattacks. The cover can be purchased for as low as Rs. 1 Lakh to as high as Rs. 1 Crore. Listed below are some reasons why you should go for a cyber insurance policy.
1. Coping with financial losses
A cyber insurance policy gets you covered against monetary losses occurring due to unauthorised online transactions. In case you have been tricked into making a transaction online or sharing financial information, or have become a victim of e-mail spoofing or phishing, then the insurer will bear your losses. You can make a claim either from a bank/financial institution or from the insurer. Also, your insurance company must be informed about any amount that you have recovered from your bank or financial institution.
2. Staying protected on social media
With a lot of people sharing personal information on social media platforms, the cases of cyberbullying and cyberstalking have been on a rise. Cyberstalking gets the victim involved in the case emotionally and psychologically, as the victim here is attacked personally via messenger applications, e-mail, and other mediums. If the insured person sees a psychologist to deal with such situations, then the cost is borne by the insurer subject to sub-limits. The insurance company will also pay for IT services to manage content, and also pay for the cost of the lawsuit.
3. Managing legal costs
Costs of legal consultation and criminal lawsuits against third parties in the event of identity theft, financial fraud, data or privacy breach are borne by the insurance companies. Legal coverage includes the cost of transportation, legal fee, call charges, and postage and bank charges, if applicable. HDFC Ergo provides for loss of wages for a maximum of 7 days.
There are significant differences among cyber insurance policies offered by different insurers. HDFC Ergo covers legal expenses for up to 100% of the sum insured in comparison to 10% under Bajaj Allianz. HDFC Ergo offers a family cover as an add-on; however, Bajaj Allianz does not provide it. You will have to purchase individual policies in case you wish to add more family members under your policy.
Rakesh Goyal, Director at Mumbai-based Probus Insurance shares, "Whoever deals in this online world will need the cyber cover sooner than later. I would recommend it to every adult like most of the transactions are now done online." In the today's digital world, it is highly recommended to buy cyber insurance at the earliest, as one cannot afford to take risks where cybersecurity is concerned.