Insurers to Offer Cyber Risk Covers to Individuals

Cyber Insurance, where earlier used to preserve large businesses, these days is offered to cover individuals too. An increasing number of internet users who get tricked online, leading to fraudulent transactions, online extortion, risk to reputation, and identity theft can now get themselves protected against the same. HDFC Ergo has recently launched a cyber insurance policy named E@secure, to protect individuals.

The Managing Director and Chief Executing Officer of HDFC Ergo, Ritesh Kumar said, “A special feature of this policy is that it provides cover to the entire family, including children. In addition to compensating for losses due to fraudulent transactions, it compensates for legal cost and counselling for any traumatic experience online.”

The policy provides protection against monetary frauds at times where the bank denies to pay for the incurred losses. It includes the instance where the insured accidentally shares his/her password. But to make a claim, filing police complaint before 72 hours is a must.

The policyholders also have the advantage to make a claim request for the ransomware. For example, in the case when ransomware ‘WannaCry’ locked the users from their own computer systems, this policy would have worked. Apart from ransomware, the policy also provides protection against the extortionists who threaten the internet users to make their private data or pictures public.

The policy is available for a premium amount starting from Rs. 1,340 and goes up to Rs. 3,348 for sum insured options of Rs. 50,000 and Rs. 5 Lakh respectively (subject to an extra premium for malware protection). The maximum sum insured option available under the policy is of Rs. 1 Crore.

Previously, even Bajaj Allianz General Insurance introduced a cyber protection policy for individuals. Also, ICICI Lombard is in the middle of launching a cyber insurance policy of its own.

The protection offered by HDFC Ergo is not confined to any location or device. The insured can request for a claim in the case of him/her facing a loss after using the computer system in public network. All it requires is a police complaint, and the insurer will provide help and legal guidance. Kumar shares, “Legal advice will be provided by our in-house team, but for counselling sessions, we will be having an external panel of psychologists."