Cyber insurance, an insurance product protects individuals and businesses from Internet-based risks and in general from risks associated with information technology infrastructure or activities. In general such a policy extends coverage for losses that include data destruction, theft, hacking, extortion in addition to some other advantages that include security-audit, criminal reward fund and expenses incurred towards post-incident public relations or investigations.
In a first of its kind, recently private sector insurer Bajaj Allianz has come up with a unique Cyber protection policy plan for individuals. Though customised cyber liability covers for businesses existed for quite some now. The policy titled Bajaj Allianz Individual Cyber Safe' is aimed at increasing and improving the comfort level among e-commerce and individual internet users.
Eligibility: An individual aged 18 years and above who uses Internet on computer or other digital devices can buy the cyber attack insurance plan at an affordable cost. The sum assured for the policy can be anywhere between Rs 1 lakh to Rs 1 crore.
Premium schedule for the policy still has not been disclosed by the company. According to officials the rate will vary depending on the number of hours the individual spends online. "The premium will be in a broad range," said Singhel- MD and CEO of Bajaj Allianz General Insurance.
Coverage and Benefits extended: Overall the protection shall be extended in respect of various cyber risks that include malware attack, identity theft, IT theft loss, e-mail spoofing, cyber extortion, phishing and cyber stalking. The policy shall also compensate for financial loss due to reinstallation or retrieval of data, restoration cost incurred due to the entry of malware in the computer program.
The coverage shall also be extended for prosecution and defence cost per se identity theft, transportation cost incurred in respect of attending summons from court, counselling services or claim for damage for data breach and privacy breach against third party.