It is now possible to buy insurance protection against cybercrime. This is inclusive of funds lost to online fraud, cyberstalking, identity theft, phishing, extortion, and malware attack.
Although cyber insurance cover has been available for businesses for a few years now, these could not be purchased over the counter by individual subscribers. Bajaj Allianz General Insurance has configured a Cyber Safe insurance scheme that is targeted at individual e-commerce and internet users. The plan will improve the comfort level of these customers when using the internet and protect them from cyber attacks.
The MD and CEO of Bajaj Allianz, Tapan Singhel, stated that this insurance plan is the first scheme designed based on the changing needs of the customer base. He compared the risk of cybercrime to pickpocketing in the yesteryears.
Singhel mentioned that the amount of confidential information that is being generated, stored, and transmitted to various digital devices is on the rise. The criticality of the data and the complex systems that generate/transmit it have given rise to several cybercrimes.
The Cyber Safe policy can be bought for a sum assured that ranges between Rs.1 lakh and Rs.1 crore. The schedule of premium payment has not been revealed by the insurer. However, the rate is expected to vary based on the amount of time the insured individual spends online.
The insurance plan is not specific to devices and it will protect the individual when transactions are made from devices at work or at home. The insurance will not offer coverage if the transaction is made from a suspect device or an internet cafe.
Currently, the Indian cyber insurance domain is valued at just Rs.30 crore and includes coverage bought by companies/institutions.
Apart from protection against financial losses, the Cyber Safe insurance cover will offer compensation to the insured for the cost of obtaining legal defence if his/her credentials are hacked by someone and controversial comments are posted on social media subsequently. The coverage also includes protection from stalkers and phishing frauds.