Cyber Insurance For Individuals: Should You Purchase It?

Lives have changed since the pandemic has rooted itself across the world — partly good, partly bad. Some of these changes are for the short term, while some are for the long term. While no one had imagined before the pandemic that a digital revolution would be forming the basis of the entire economy. From doctor’s consultations] to ordering your groceries online, all of it is possible with just a few clicks. Many public services like applying for a driving licence, paying stamp duty, paying your taxes and more are all possible online.  

While these changes have brought a great deal of convenience to everyone, they have significantly exposed individuals to cyber threats. Malicious hackers and fraudsters are snooping on people to steal their identity, reputation and even money. 

The National Crime Records Bureau of India even reported a spike in cybercrime cases by 50,000 that were reported in the year 2020. As corporations began to change the way of working making work-from-home a standard norm, the cyber security incidents jumped to 14.02 lakhs in 2021 from 2.08 lakhs in 2018 as reported by CERT-In. 

The need for cyber insurance for individuals

Large business houses handle data whose breaches may cost them millions. Hence, they ensure adequate safety standards regarding information technology (IT) practices. This includes putting in place firewalls, security systems, and buying cyber insurance coverage. But that isn’t possible when it comes to individual users of the internet. Further, many users are even negligent of their actions resulting in data breaches and financial losses.

The focus on individual cyber insurance policies increased only after the regulator, the Insurance Regulatory and Development Authority of India (IRDAI) listed some standardised guidelines. At present, few companies offer cyber coverage for individuals. 

Individual cyber insurance covers losses arising from breaches of data, phishing, identity theft, stalking, and social media hacking among the different forms listed by the IRDAI. You can visit the official website of IRDAI for further details.

Losses covered by personal cyber insurance plans

The insurance regulator, the IRDAI has outlined the losses that need to be covered by a person’s cyber insurance plan – 

  • Theft of funds

Financial losses due to cyber incidents or hacking of bank accounts, credit or debit cards, and wallets are covered under the policy’s scope. *

  • Cyberstalking or bullying

A cyber insurance policy covers the costs to prosecute the stalker. *

  • Data restoration cost

The cost of data restoration required due to malware is covered under a cyber insurance cover. *

  • Phishing cover

This covers the financial losses that may be incurred by an individual due to phishing attacks, including the cost of prosecution. *

  • Cyber extortion

Cyber extortion cover provides protection for the losses that may be caused due to a cyber extortion threat. *

  • Identity theft

Identity theft made with malicious intentions to cause financial and reputation damage is covered by the identity theft cover of a personal cyber insurance cover. *

  • Media liability claims

The defence cost in the case of a third-party claim due to defamation or invasion of privacy due to the insured’s broadcast or publication of digital media content is covered by media liability claims. *

* Standard T&C Apply

Considering the numerous risks that are faced in today’s online landscape, a consistent insurance renewal of a cyber insurance plan helps keep you financially secured in the case of a cyber-attack. 

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

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