Author: Siddharth PriyadarshiPublish Date: Wed, 20 Jul 2022 02:35 PM (IST)Updated Date: Wed, 20 Jul 2022 02:35 PM (IST)
New Delhi, Business Desk. With the knock of Corona epidemic in the country about two years ago, cyber crime has also increased significantly. With the introduction of ‘work from home’ culture, the number of cyber crimes in India has increased tremendously. According to one figure, the incidents of cyber fraud increased to 14.02 lakh in 2021, from just 2.08 lakh in 2018. Most of the frauds have been seen in the banking sector. If we look at the data published by public sector banks, it is found that the loss due to ATM/debit card, credit card and internet banking frauds is estimated to be around Rs 63.4 crore in 2020-21. Keeping all these in mind, taking cyber insurance cover seems to be a better option.
As new threats of online fraud are getting exposed, the number of people taking cyber cover is also increasing. Now big companies are also worried due to online fraud. However, unlike the corporate cover provided by insurance companies, currently very few companies offer personal cyber cover.
Why cyber cover is necessary
Cyber insurance covers loss due to data theft for individuals or firms. For individuals, these can include phishing, identity hacking, repeated chases, social media hacking and other things listed by IRDA. Large corporates usually have firewalls to check cyber attacks. This is not always possible in the case of individuals. Many people are careless in their online transactions, which increases the risk of loss.
cover what happens
The individual plans currently available insure some or all of the 11 cyber crimes listed by IRDA. The cover can start from Rs 10,000 to Rs 5 crore. Most insurers also offer a variety of schemes depending on the risk appetite and budget of the insured. You can get information from the insurance company about the cybercrimes that you want to cover.
Money theft: Covers losses due to cybercrime or hacking of bank accounts, credit/debit cards and/or mobile wallets by a third party.
Cyber Stalking: It covers the cost of prosecuting the stalker.
Phishing: Covers financial losses caused by phishing, including the cost of prosecuting offenders.
Identity Theft: Covers losses due to identity theft or fraud.
social media cover Covers claims for damages caused to the insured due to a hacked social media account.
e-mail spoofing: Covers financial losses caused by fraudulent e-mails; It also includes the cost of prosecuting criminals. Data breach and privacy matters are also covered.
what are the conditions
Most cyber policies are renewed annually. The policies also do not have a waiting period and can be purchased by anyone over the age of 18, although some have an age limit of 21 years. The cover you need depends on how much loss you are at risk of, be it money, data or bank account details. If you do more online transactions, you will need higher cover.
how much will be the premium
The premium for a cover of Rs 1 lakh for an individual can range from Rs 700 to Rs 3,000 annually. The annual premium for a plan of Rs 1 lakh for a Bajaj Allianz Personal Cyber Safe insurance policy is Rs 781. It is Rs 2,708 for ICICI Lombard Retail Cyber Policy. The premium for HDFC ERGO Cyber Sachet plan for a working professional is Rs 984. Considering different plans, before choosing a policy for yourself, check not only the premium but also the things that are covered in it.
Edited By: Siddharth Priyadarshi