Firms log into insurance to cut cyber crime losses

Font Size

Print

Feedback

Email

Discuss

Related Articles

Insurance cover? Not if you die in terrorist attac...Insurance plan for Indians in Qatar launchedNew York Life could hike stake in India once laws ...Australia insurer IAG enters India with SBI ventur...

Chandigarh, Aug 13: With the incidents of cyber crime on the rise especially in industries like banking, IT/ITES, BPO/KPO, the corporates have started opting for cyber crime insurance.

Currently, some middle and large sized companies buy this insurance either as a standalone policy or bundled policy for covering cyber crime losses. The average amount insured starts from $5 million and goes up to $50 million and the cost of premium ranges between 0.5 to 1 % of the sum insured and in some cases can go up to 5%.

Discussing about the growth of such plans, Rahul Aggarwal, CEO click2insure.in told FE that cyber crime is a menace for any organisation transacting business through internet. He said, “Despite best efforts the technical systems with the organisations are not adequate to tackle industrial and commercial espionage leading to cyber crimes. But as huge losses occur due to distortion of data the big firms have started taking cyber crime insurance seriously. HDFC General Insurance, Tata AIG and ICICI Lombard. Companies like HCL infosystems, Annik Technologies, Nucleus Technologies, Punj Star, NIIT, etc. have already adopted this policy. But the small and medium companies are yet to wake up to this product.”