Personal Cyber Insurance Policy

Personal Cyber Insurance aims to protect individuals from losses arising from cyber attacks such as phishing, bullying, etc. While extension options for families might be available, this insurance primarily aims to protect individuals.

Personal Cyber Insurance aims to protect individuals from losses arising from cyber attacks such as phishing, bullying, etc. While extension options for families might be available, this insurance primarily aims to protect individuals.

While corporate cyber insurance is quite popular, most people remain unaware of the importance of Personal Cyber Insurance policy. Hacking an personal's database can be easier than hacking into a company’s data. This makes Cyber security insurance for individuals more prone to cyber data attacks.

Many companies do not protect their employees' personal data, even if their cyber coverage policies include it. Cyber Insurance policy thus becomes a necessity for individuals. As a business owner, people can use your personal information against you and your company, like passwords and identification. However, Commercial Insurance usually excludes coverage for such personal data.

India has witnessed a digital boom in the past few years. In this era, almost every corner of the country has access to unlimited information. With such rapid adoption of internet technologies, threats related to the sector have also seen a rise.

The introduction of UPI in India has enabled smoother online transactions. But the losses due to internet-related payments, such as Net Banking, ATMs, Credit cards, etc., have increased significantly. In the fiscal year 2020-21 alone, financial institutions recorded these losses at an amount of Rs 63.4 crore.

Since COVID, working from home has been prevalent in the country, leading to more online interactions. In 2018, pre-Covid stats of cyber security incidents was 2.08 lakh. This saw a more than five times increase, with 14.02 lakh cases reported in 2021.

In September 2021, the Insurance Regulatory and Development Authority of India (IRDAI) issued guidelines for insurers. These guidelines pertain to the inclusions and protection of individuals against cyber attacks. This is a step to fill the gaps in the cyber security space in the country.

In August 2023, the Lok Sabha passed the Digital Personal Data Protection Bill. This bill establishes rules for data-related companies and enumerates consumer rights. The bill suggested a highest fine of 250 crore and a lowest fine of 50 crore for any violation. Such Cyber laws are becoming more prevalent as the government considers cyber security and data breaches as serious offenses.

Individual cyber insurance policy, includes coverage for sensitive information, safeguarding you from financial loss because of identity theft or malware attack. Hence, people sometimes label this policy as Identity Theft Insurance. Moreover, it provides protection against potential bodily injury risks arising from cyber threats, ensuring your peace of mind.

As a country, India is still learning to deal with technological threats. This makes it vulnerable to cyber attacks in a world where technology gets more intelligent daily. Plus, ransomware threats are surging worldwide, and India is no exception. Hence, individuals need to have Cyber Insurance policy in place.

Individuals, compared to organisations, may take cyber security concerns less seriously. Companies maintain dedicated teams of IT professionals and cyber security experts, along with substantial funds and robust security policies. In contrast, most individuals hardly implement similar measures for personal data protection.

Some people prefer a 4-digit password for convenience, even though it may not be as secure as a longer one. So, this would make him more vulnerable to cyber attacks such as data breaches and hacking.

Individuals can fall victim to malpractices like phishing more frequently than companies. Such criminals manipulate people into clicking malicious links or submitting money, which makes individuals more susceptible to these attacks. Individuals also use multiple devices and services, such as smartphones, tablets, and laptops.

This increases their attack surface. Each device and online account can become a potential entry point for cyber criminals. Cyber criminals deploy various social engineering strategies to exploit human psychology. They tend to evoke emotions such as fear, urgency, and trust to gain access to prohibited personal information.

Impersonation refers to the act of posing or pretending to be someone known to access information. Criminals may play on empathy or compassion to have the upper hand. Naturally, individuals are more prone to such threats as exploitation can be more accessible.

Tailgating is another form of attack that individuals are prone to. It refers to (mostly physically) following a person, building connections, and using their kindness to gain information against them. In fact, individuals usually have limited resources and information on such attacks at a personal level.

People are also more prone to risks such as financial defaults. Companies can get money or loans to handle cyber attack losses, but individuals have less protection against these attacks. Therefore, it becomes essential for each person to have Cyber Insurance.

Personal cyber insurance policy provides protection against various cybercrimes for individuals, such as:

•   Theft of identity leads to financial losses. This would cover identity restoration costs, legal fees, and related expenses.
•   Data breach and related costs such as notification costs incurred, credit monitoring, and potential legal fees.
•   The insurance covers ransom money demanded for lost or unauthorized data access.
•   Any financial losses occurring from fraudulent online transactions or stealing.
•   Coverage and aid related to cyber extortion.
•   Coverage from phishing and other malpractices.
•   Legal expenses in cases of defamation or claims.
•   Coverage from privacy violations in case of prohibited social media account access (media liability).
•   Protection in case of defamation or slander.
•   Coverage and restoration in case of a cyber attack on your home system or personal network.
•   Legal fees incurred in court settlements.
•   Monetary losses resulting from fraudulent email attacks.
•   Any third-party charges against you because of the attack, such as malpractices, defamation, privacy violation, etc.
•   In cases of cyber stalking, the insurance covers expenses for investigating and prosecuting online stalkers.
•   Access to fraud specialists and cyber security experts.
•   Monitoring and investigation costs
•   Replacing or repairing digital data

Personal Cyber Insurance policy excludes certain risks such as:

•   Events or attacks that occurred before the policy’s commencement.
•   Insurance doesn't cover crypto currency and related attacks because of their non-recognition as legal tender in India.
•   Losses resulting from illegal or malicious activities of an individual.
•   Personal Cyber Insurance policy does not cover your work or business-related attacks.
•   Damages and losses incurred because of war, terrorism, or natural causes.
•   Losses occur from intentional acts or individual negligence.
•   If the insurance company knew about a data breach or incident beforehand, they might not provide coverage.
•   Intentional lack of security measures or not following regulated safety guidelines.
•   Loss of potential future earnings that may have happened if not for the attack.
•   Damage or loss to any physical property or non-digital assets.
•   Any losses already covered by another insurance policy.
•   Financial losses due to government policy changes.

A significant problem while selecting a Personal Cyber Insurance policy is balancing coverage and premium cost. Usually, individuals look for higher coverage in case of cyber attacks. But that also means a higher premium price. However, achieving this balance is crucial.

First, you must analyse your needs and risks carefully. A universal policy that accommodates every individual does not exist. Then, assess your risks and liabilities. Also, identify priorities by spotting your vulnerable areas.

Ensure thorough comprehension of policy terms. Maintain clean financial records. Integrate deductibles, your personal expenses, to significantly lower the premium.

Please ensure to compare and purchase policies. Customise the Personal Cyber Insurance terms to your needs. Consider your budget well. Assess your risk tolerance levels.

You may sometimes be eligible for discounts if you buy multiple insurances as a bundle.

As an example, home insurance typically includes Personal Cyber Insurance policy as an available choice. Talk to your insurance provider regarding the same.

Finally, do not compromise coverage costs to lower your premium amount. In case of an attack, the more coverage you have, the better protected you are. You may consider seeking professional advice.

Personal Cyber Insurance policy costs can vary widely for everyone. No two people need the same policy, and changes can lead to such differences in cost. Further, factors like the Insurance provider, your location, age, and individual risk profile also affect the policy cost.

An Individual cyber safe insurance that covers Rs 1 lakh for one person can cost anywhere from Rs 700 to Rs 3,000. The scope of cybercrimes determines the premium amount the policy covers, and the range of services included.

Bajaj Allianz's Cyber Safe Insurance covers up to Rs 1 lakh for a yearly premium of Rs 781. On the other hand, ICICI Lombard’s Retail Cyber policy charges an annual premium of Rs 2,708. The HDFC Ergo Cyber Sachet plan, designed for working professionals, has an annual price of around Rs 984.

These plans follow an annual renewal cycle and extend coverage to multiple devices. Additionally, some plans allow for the inclusion of family members, typically for parents and up to two children.

Consult with your insurance provider for Personal Cyber Insurance. You may visit the office offline and purchase the policy.

Alternately, you can utilize online marketplace platforms like SecureNow. We make policy purchases super simple and comfortable for you.

Start by entering your preferred policy needs. Then, choose from the array of coverage options provided by different insurance providers. Finally, compare and pick the policy that suits you best. Afterward, upload and validate your documents, make an online payment, and activate your chosen policy.

Kindly visit www.securenow.in for additional information.

Inform your individual cyber safe insurance provider as soon as an attack takes place. They shall lodge an FIR with both the police and the cyber cell. You'll need to provide information about the attack, relevant documents, identity proof, financial loss proof, and related evidence.

Fill out the claims form provided by your insurer accurately. An investigation will take place. Corporate with the officials and stay updated on the process. The insurance provider will assess your claim based on the information provided and the terms of your policy.

We will inform you about the approval status of your claim. Upon approval of your claim, they will proceed to address the issue. This could include compensating for money lost, providing services, or following the policy terms in different situations. If not approved, ask your insurance provider or a higher authority for information or assistance.