Important things to keep in mind before buying a Cyber Insurance policy

By: |
Updated: Sep 03, 2020 6:15 PM

While there are several cyber insurance plans available in the market, experts say to opt for the ones that are designed specifically to cover individuals against potential cyber threats and risks.

NPCI, cyber security, Narendra Modi, digital payments system, National Cyber Security, cyberattacks,NPCI database, RuPay, latets news on cyber securityKeep in mind that some insurers offer low premium rates, but charge exorbitant deductibles. Experts say, it is better to pay a decent premium than pay high deductibles in case of a claim.

To get cover against cyber-crimes, people have been opting for cybersecurity Insurance for some time now. It is a type of general insurance that covers the policyholder against cyber-crimes and digital frauds. It protects the policyholder from risks of getting exposed to cyber-attacks such as email spoofing, IT theft, cyber extortion, etc. while browsing the internet be it for personal use or for business.

While there are several cyber insurance plans available in the market, experts say opt for the ones that are designed specifically to cover the individuals against potential cyber threats and risks. Additionally, there are various things one should check before buying a cybersecurity insurance policy

What’s your risk exposure?
Evaluate your risk associated before opting for a plan. Simply put find out how much of your private data is exposed, such as financial transactions are done through internet banking, card payments, e-wallets. Along with information stored on digital devices, social media usage, etc. should be looked at before buying a cyber insurance policy.

How much will be covered?
While opting for a policy understand the limitations of liability that you need to opt for. Experts say policyholders should opt for a sufficient limit of liability, based on their evaluation of risk exposure. Additionally, choose the sum insured of your policy depending on the risk covered. For instance, Bajaj Allianz offers Sum insured options ranging from Rs 1 lakh to Rs 1 crore with their individual Cyber Safe Insurance Policy.

Threats covered
Before finalizing an insurance cover, understand the coverages offered by the insurance company. This will help you understand the threats covered in the policy. Usually, these type of policies covers against 10 or 15 major cyber threats – email spoofing, cyberstalking, malware attacks, identity theft, data breach by third party, media liability, cyber extortion, social media liability, it theft loss, phishing, etc.

Premium
Along with the premium understand the amount of deductible of a policy. It is the amount, that the policyholder has to bear first and the insurance company pays over and above the same, in case of a loss incident. Keep in mind that some insurers offer low premium rates, but charge exorbitant deductibles. Hence, experts say, it is better to pay a decent premium than pay high deductibles in case of a claim.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Market Linked Debentures: Who should invest, tax benefits, associated risks – All you need to know
2Applicability of NAV upon realisation of funds: Will it impact your Mutual Fund SIP too?
3Lok Sabha passes taxation bill