Why is Having a Personal Cyber Insurance Policy Important?
The above infographic clearly illustrates the need to be aware of various cyber risks in India and the role of tools like personal cyber insurance in managing their effects. Let us look at more data points that highlight why it is important to buy cyber insurance in today's time:
- As of March 2024, there were a total of 954.40 million internet subscribers in India.
- More internet users imply more space for digital fraud.
- According to government data (as of April 2024), 95.15% of Indian villages now have access to the internet.
- Cyber attackers and scammers can now easily reach the grassroots level.
- Not just this, Indians did 13,116 crore UPI transactions in FY 2023-24, amounting to INR 200 lakh crore.
- As Indians are rapidly adopting digital technology like e-banking, online shopping, UPI payments, etc., scammers are executing even faster attacks.
- With the continuous addition of more smart devices to your homes, it becomes all the more important to protect all the devices from cyber risks.
It can be a major concern if people are unaware of such frauds or do not have personal cyber insurance, which can help them financially if they fall prey to them.
It is to be noted that some insurance providers offer personal cyber insurance as an add-on with other insurances, but keeping in mind the digitalisation that has happened over the recent years, this insurance is now becoming a must for people who use the internet for their day-to-day operations.
Who Should Purchase Personal Cyber Insurance Policy?
Personal Cyber Insurance is beneficial for individuals who are at risk of cyber threats due to their digital activities. This includes:
- Frequent online shoppers and banking users: Those who regularly make online transactions and store payment details.
- High-net-worth individuals: People who may be targeted for financial fraud or cyber extortion.
- Remote workers and freelancers: Individuals handling sensitive data or using unsecured networks.
- Social media users and influencers: Those exposed to identity theft, cyberbullying, or account hacking.
- Families with children using the internet: To protect against cyberbullying, identity theft, and unauthorized online purchases.
- Individuals storing personal information digitally: Those who keep sensitive documents, passwords, or financial data online.
What is Covered Under Personal Cyber Insurance?
The inclusions under the Personal Cyber Insurance are as follows:
- Theft of Funds
- Identity Thefts
- Malware Decontamination & Data Restoration
- Cyber Extortion and Ransomware
- Online Shopping
- Online Sales
- Social Media and Media Liability
- Cyber Bullying & Loss of Reputation
- Network Security Liability
- Privacy and Data Breach Liability
- Privacy Reach by a Third Party
- Smart Home Cover
What is Not Covered Under Personal Cyber Insurance?
The exclusions under the Personal Cyber Insurance policy are:
- Losses due to non-disclosure of facts or circumstances
- Investment or trading activities
- Loss of or damage to tangible property
- Any action, misbehaviour, or omission which is malicious, dishonest, or deliberate
- Bodily injury, trauma, or death
- Gambling
- Transactions in cryptocurrencies
- Cyberwar
Disclaimer: Coverage inclusions and exclusions may vary by policy. It is advisable to review the policy terms and conditions thoroughly.
What are Cyber Risks?
Ever received an email claiming you have won a jackpot? Or did you get a call from an unknown number asking for the OTP? You must have also heard of the rising cases where someone impersonates a police officer and alarms you about your involvement in serious crimes. All these are examples of different types of Cyber Fraud. These are online scams whose network is expanding rapidly in today's age of digitalisation.
The most common types of cyber crimes in India include:
- Theft of Funds
It is one of the most common types of cyber crimes wherein scammers indulge in unauthorised transfer of money, assets, or any other funds. They get access to your bank accounts, debit or credit cards, or digital wallets through hacking, phishing, pharming, and malware attacks.
- Identity Theft
It is a cyber fraud that arises when a third party steals or misuses your personal information, legal documents (like Adhaar or PAN card), or financial information on the internet. Cyber attackers take your identity to commit fraud.
- Phishing
It is one of the most common social engineering attacks where attackers send spoofed emails or fraudulent texts/calls pretending to be a trusted entity or person to extract personal and sensitive information. They may trick you into taking some actions like downloading an image, clicking a link, or filling out a form, ultimately resulting in downloading malware or exposing you to a cyber attack.
- Fraudulent Online Sales
Ever ordered something from an online store which never reached you? Well, this is a classic example of fraudulent online sales. Scammers create fake websites to deceive customers into paying for online services or products that do not exist. They often create legit-appearing websites and social handles to deceive their targets into making payments or giving out personal or financial information.
- Digital Arrest
It is one of the most recent and trending cyber frauds that is around the corner. It usually involves scammers impersonating as government or law enforcement officials falsely accusing the victim of involvement in illegal activities and serious crimes. They are threatened with severe consequences or imprisonment. This is usually done to create a sense of panic and fear, ultimately tricking the victim to give sensitive personal or financial information or pay a large amount of money.
How to Choose the Right Personal Cyber Insurance Coverage?
When choosing a personal cyber insurance, you must consider the following factors:
- Digital Footprint: Analyse your digital activities to assess how much cyber risk you are at. Consider the number of UPI transactions you make daily, the net banking services you use, the sites you make online payments on, the social sites you engage with, the quality of your social interactions, the amount of data you work with, the networks you use, and so on.
- Coverage Options: Be clear about what the personal cyber insurance policy covers and excludes. Your coverage options should match the risks you are prone to, i.e., the coverage amount should be enough to cover the risks you may be exposed to. This also means that buying insurance that exceeds the risks you may be prone to will not be helpful.
- Coverage of Devices: It is important to check whether a personal cyber insurance policy covers all the devices in use before making a purchase.
- Including Members: The number of members covered under a policy is a key consideration when selecting a personal cyber insurance plan, as coverage needs may vary for each individual.
- Incident Response: Check out the incident response time taken by the cyber experts and the process they follow to investigate a cyber incident to ensure you choose the right insurance policy.
Benefits of Personal Cyber Insurance
Here is a closer look at the benefits of personal cyber insurance:
- Financial Protection: Cyber insurance covers the costs for reimbursement of financial losses associated with a cyber attack. It also covers data breach losses by covering the cost of restoring lost or stolen data.
- Reputation Restoration: In case a cyber attack results in damage to your reputation, personal cyber insurance assists you with the necessary course of action to manage the crisis. It may also reimburse the revenue loss you may have incurred due to reputation loss.
- Expert Assistance: If you unfortunately become a victim of any cyber fraud, with personal cyber insurance, you can get easy, quick assistance from cyber security experts on reducing the impact of the fraud. This helps you better manage the unforeseen situation and recover from the cyber incident.
- Peace of Mind: Obtaining cyber insurance allows you to surf the internet and use digital modes of payment, shopping, transactions, etc., without worrying much about potential cyber-attacks.
How to Buy Cyber Insurance Online?
Follow the below steps to buy personal cyber insurance online through Policybazaar.com:
- Visit the official website of Policybazaar Insurance Brokers Private Limited.
- Click on 'Insurance Products' at the top navigation banner. Toggle to 'Other Insurance' and select 'Cyber Insurance' from the drop-down.
- Select the 'Individual' or 'Family' option based on your desired coverage. Enter your details and the desired sum insured amount to view different plans.
- Go through all the plans thoroughly and select the one that matches your needs.
- Fill in the necessary details and pay the premium using UPI, debit/credit cards, or internet banking.
- The insurer will review your documents and issue you the policy. You will receive a copy of the policy on your registered email address.
How to File a Claim for Cyber Insurance Online?
Here is a step-by-step process to file a claim for personal cyber insurance:
- The foremost step is to become aware of a cyber security breach and file a legal complaint or FIR with the nearest police station or cyber security department.
- Inform your insurer about the cyber incident within the specified time duration as mentioned in your personal cyber insurance policy. You can also inform the Policybazaar support team about the incident, which is available online 24/7.
- Submit the claim form along with all the necessary documents. The insurance company will investigate the incident and determine its intricacies to assess if the claim is covered under your cyber insurance plan.
- If the claim is covered, you will receive the payment per your cyber security policy's terms and conditions.
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