ICICI Lombard introduces cyber insurance; should you buy?

With the spread of coronavirus the trend of contactless payment through digital means has been on the rise. With this also comes the risk of cyber fraud. While cyber insurance for businesses has been around for quite some time, the options for individuals are limited. Adding on to available options, ICICI Lombard General Insurance has launched a Retail Cyber Liability Insurance policy that will protect individuals from the critical threat of digital world. The policy offers protection to individuals and their families against any cyber fraud or digital risk that could result in a financial or reputational loss. The product is a form of insurance that protects policyholders against losses that may vary from online theft to unauthorised transactions.

All digitally active individuals can buy the policy at an affordable rate. The premium ranges from Rs 6.5 to Rs 65 per day. The sum insured for the cover ranges from Rs 50,000 to Rs 10,000,000 as opted by the policyholder. The policy provides coverage to the entire family, including children for a duration of one year.

"We are living in a digital world where data is being engendered, transmitted and deposited every nanosecond. Today, data is gold. And, to protect it, is paramount. While we live a digital life, the risks of cyberattacks have also grown exponentially. Our new product comes at an opportune moment when everybody is working remotely, using social media and net banking and is digitally active," said Sanjay Datta, Chief - Claims, Underwriting and Reinsurance.

The product offers protection against losses in the event of a cyberattack. The coverage includes protection against identity theft, cyber-bullying, cyber extortion, malware intrusion, financial loss due to unauthorised and fraudulent use of bank account, credit card and mobile wallets and legal expenses arising out of any covered risk. "The product is designed to protect individuals against the dangers that come with the connected life like cyber-bullying, identity theft and more. The policy asserts the company's pledge to provide innovative new-age risk solutions to our customers while protecting their reputation, prospective data breaches and losses in case any vital information is stolen or abused," said Datta.

The plan covers newer threats. For example, in the coverage against reputation injury, all the expenses incurred in restoring digital reputation with means of removal of the harmful publication from the internet can be claimed. If someone loses wages that would have been otherwise earned, for the time necessarily taken off from work to rectify facts arising out of any covered risk, can also be claimed.

Should you buy?

If you think you are not a tech savvy person and have significant exposure to digital transactions, this plan offering protection against any possible loss may suit you best. If you have good enough knowledge of cyber security threats and you do take all precautions to safeguard yourself against it, you may evaluate all risks and use this insurance as a supplement to your efforts.

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