Be cyber safe than sorry
With cybercrime on the rise, you must not only take preventive measures, but also have a cyber insurance. Here’s how you can pick the right policy
MUMBAI: There were 478 million mobile internet users in India at the end of June 2018, according to a report by Data Security Council of India, a non-profit NASSCOM initiative. With more users online, cybercrime is on the rise. According to National Crime Records Bureau, there was a 6% rise in cybercrimes in 2016 compared to the previous year. Uttar Pradesh and Maharashtra topped the list with more than 2,000 reported cybercrimes.
In such times, other than taking preventive measures, you also have an option to go for cyber insurance.
“Cyber security insurance policies will become a vital financial precaution. It is important to create policies that have context and value within daily lives,” said Rohan Kumar, chief executive officer of web insurance aggregator, Toffee Insurance, an online insurance platform.
To address the issue, private general insurance firm, HDFC Ergo General Insurance Co. Ltd launched a cyber policy cover last week for retail individuals.
Bajaj Allianz General Insurance Co. Ltd also has an insurance cover for individuals against cybercrimes – Bajaj Allianz Individual Cyber Safe Policy.
WHAT IS ON OFFER?
The policy, known as E@secure Insurance, protects customers from an online breach (arising directly from internet usage) by third parties. Anyone above 18 years can purchase this policy. The plan covers incidents that take place only after 45 days from the day of purchase. It covers legal costs incurred in the event of a legal dispute and costs of legal advice sought. The legal dispute should have risen out of the risks specified by the plan.
E@secure insurance covers the following risks: unauthorised online transactions – fraudulent online transaction made on your bank account, e-wallets, debit or credit card – phishing and e-mail spoofing; damage to e-reputation – covers damage to one’s online reputation if a third party publishes harmful information about you online; identity theft – reimburses expenses incurred due to loss of personal information online by a third party to obtain money, goods or services; cyber bullying – covers expenses incurred for psychological counselling and e-extortion.
You also get a 5% discount if purchased online from HDFC Ergo’s website. The policy also has two optional covers: cover that can be extended to family members and protection of digital assets from malware. The premiums for individual covers start from ₹1,410 to ₹14,273 and the sum assured limit ranges between ₹50,000 to ₹1 crore. If you wish to cover your family in the same plan, the minimum premium that you pay is ₹6,617 and the sum assured limit starts from ₹5 lakh. The family add-on can cover the insured, spouse and two dependent children.
Bajaj Allianz Individual Cyber Safe Policy is also available for those who are 18 years and above. The premium for this cover ranges from ₹662 to ₹8,933 depending on the sum insured opted and is same across all ages. The sum insured for the cover ranges from ₹1 lakh to ₹1 crore. This plan does not cover incidents that take place prior to your purchase of the plan. This plan covers identity theft, social media, cyber stalking, IT theft loss, malware, phishing, e-mail spoofing, media liability claims, cyber extortion and privacy breach and data breach by third party.
This policy has two extensions: it can cover for your counselling services and expenses incurred to prove the extent of a covered loss (under IT Consultant Services Cover). This plan, however, has no waiting period. Hence, cybercrimes occurring right after your purchase can also be covered.
WHAT YOU DON’T GET
HDFC Ergo’s cyber policy excludes illegal acts, prior situations, losses already reimbursed by the bank, claims reported after six months from date of occurrence, damage caused by a journalist, any damage on non-digital media, among others. In case of Bajaj Allianz cyber policy, it excludes improper conduct, bodily injury/property damage, unsolicited communication, unauthorised collection of data, obscene services.
WHICH ONE SHOULD YOU PICK?
One great advantage that gives HDFC Ergo’s policy an edge is the cover for actual financial loss and not just litigation, said Kapil Mehta, co-founder and CEO of insurance broking firm, SecureNow.
The Bajaj Allianz policy is more oriented towards litigation, but has lesser exclusions, said Mehta. Some very specific exclusion such as damage caused by a journalist needs clarity on who is defined as a journalist. Customers concerned about monetary loss can look at HDFC Ergo’s plan whereas those more concerned about litigation can opt for Bajaj Allianz’s plan.