By Bhakti Dhama
The financial losses from cybercrimes in India are estimated to be massive. India witnessed a surge in cybercrimes in 2021 compared to the previous year, with over 52,000 cyber-crime incidents being reported, according to the latest data released by the National Crime Records Bureau, ministry of home affairs.
As we continue to rely more and more on technology in our daily lives, the risks of cyber-attacks and data breaches are becoming increasingly prevalent. Personal cyber insurance is a policy designed to protect individuals from the financial consequences of a cyber-attack or data breach.
Key factors to consider
When choosing a personal cyber insurance policy, several factors should be seen. Firstly, assess your risk level. Consider your online activity, the types of personal information you share online. This will help you determine the level of coverage you need.
Next, evaluate the coverage options available to you. Look for policies that cover a range of cyber threats, including identity theft, cyber extortion, social engineering attacks, online shopping frauds etc. Consider the limit of liability or the maximum amount the policy will pay out in case of a claim. Also, review the policy exclusions, which are situations or events not covered by the policy.
Look for policies without sub-limits and other cappings. Sub-limits are limits within the policy that cap the amount of coverage available for specific types of claims. This can reduce your coverage and limit your ability to recover from a cyber attack. A policy without sub-limits will offer more comprehensive coverage and ensure you are fully protected in the event of a cyber attack.
Secondly, look for flexible coverage options. A flexible policy will allow you to adjust your coverage levels as your risk profile changes. Your cyber security needs may change over time, so choosing a policy that can be customised to meet your evolving needs is important. Lastly, consider a policy that provides holistic financial fraud coverage, covering both digital and offline financial frauds. A policy that covers these types of fraud will provide more comprehensive protection.
When choosing a personal cyber insurance policy, relying on more than just the premium is crucial. Instead, examine the product as a whole and evaluate the features and benefits offered. By taking the time to consider your options carefully, you can choose a policy that provides comprehensive protection against cyber threats. Another vital factor is the insurance company’s reputation and financial stability. Look for an insurance company with a good record of paying claims and high financial ratings from independent rating agencies.
In addition to purchasing personal cyber insurance, taking other measures to protect oneself from cyber threats is crucial. With the growing culture of smart homes and online purchases, installing home cyber security is equally important.
Home cyber security involves securing all devices connected to your home network, including laptops, smartphones, smart TVs, and even appliances such as refrigerators and thermostats. This can include installing firewalls and antivirus software and keeping all devices updated with the latest patches.
The writer is senior vice president, Products, Raghnall Insurance Broking & Risk Management