New Delhi: The substantial increase in digital transactions has led to a sharp rise in cyber scams. In response, more businesses and individuals are opting for cyber insurance coverage to protect against financial loss caused by the leakage of any personal data.
What is Cyber Insurance?
Cyber insurance is a type of coverage that protects against financial loss caused by many of the threats of the digital age, including malware attacks, phishing, identity theft, and social media breaches, among others. ,Also read: Smartphone Tips and Tricks: Your phone will not break even after falling from the height of several floors, follow these 5 easy rules,
“The volume of e-transactions increased significantly after the pandemic, which fueled the expansion of cyber insurance. Additionally, there was a chance of online fraud. Accordingly, there is a growing need for cyber insurance from both corporate customers and retail customers who are According to Rajesh Kumar Sharma, CEO and Principal Officer, Anand Rathi Insurance Brokers, it is becoming more and more aware.Also read: Alert! CERT-In allows WhatsApp users to…,
The Reserve Bank of India (RBI) reports that at the end of FY 2012, digital payments represented 96.32 per cent of all payments, up from 95.4 per cent in FY10. The RBI Digital Payments Index, which analyzes digital payments, rose 29.08 per cent from a year ago to 270.59 in March 2022, the highest ever level.
The Insurance Regulatory and Development Authority of India (IRDAI) last year published recommendations for a sample cyber insurance policy for individuals that general insurers are encouraged to follow in light of the rise in fraud. “A person should buy cyber-insurance coverage because everything they have, including their savings and money, is at risk of being stolen by hackers.
The price of these plans is also reasonable. For example, Bajaj Allianz charges a premium of Rs. 2,848 for a sum insured of Rs. 10 lakh (excluding GST). According to SK Sethi, Director, RIA Insurance Brokers and author of Book 1 Cyber Attack, other insurance companies like Tata AIG, ICICI Lombard and New India Assurance also offer this policy.
It is always advisable to buy cyber insurance coverage to protect both you and your company.