Why you need cyber insurance policy? All you need to know

Cyber insurance in India is turning out as need of the hour as cases of online frauds through malware ad phishing emails are on the rise year after year. Such cases have witnessed quantum jump during the Covid-19 spread as rise in digital payments have led to rise in the digital fraud as well. To ensure monetary safety against any kind of cyber fraud, insurance companies have coined cyber insurance policies offering cover against any kind of monetary loss through the malware or phishing attack.

Speaking on cyber insurance policies available in India Jignesh Shah, a Mumbai-based IRDAI registered insurance advisor said, "Cyber insurance policies are available in India on both corporate level and on the individual level. Cyber security breach is a common cause of concern for both corporates and for the individuals. So, cyber insurance companies are offering cyber insurance policies customised for both companies and individuals."

Shah said that the cyber insurance policies in India are available from ₹650 to ₹700 annual premium for ₹1 lakh sum assured and it needs to be renews on the yearly basis. The IRDAI registered insurance expert went on to add that in the case of individual cyber insurance policy holder, the premium is not subject to the policy holder's age as it is in the case of life insurance or health insurance.

On how cyber insurance policies in India provides cover against any kind of malware or phishing attacks Deepak Desai, Director at Auxillium Insurance Broking — an IRDAI registered insurance solution provider company said, "Cyber insurance policies in India are providing cover against all kinds of monetary losses caused by e-theft and e-communication. It not only gives cover against the monetary losses but provides cover against the legal defense cost incurred during the legal formalities as well."

Desai went on to add that cyber insurance policies currently available in India also provides cover against third party loss as cyber data breach of an individual or of a company may lead to monetary loss of others too.