Coverage of Cyber Insurance
Question
In India, under cyber insurance for individuals, which of the following benefits are generally covered, in addition to payment for the loss of funds and other benefits? Select the correct answer using the code given below:
- 1.
Cost of restoration of the computer system in case of malware disrupting access to one's computer
- 2.
Cost of a new computer if some miscreant wilfully damages it, if proved so
- 3.
Cost of hiring a specialized consultant to minimize the loss in case of cyber extortion
- 4.
Cost of defence in the Court of Law if any third party files a suit
Options
1, 2 and 4 only
1, 3 and 4 only
2 and 3 only
1, 2, 3 and 4
Explanation
Cyber insurance policies for individuals typically cover financial losses and recovery expenses stemming from cyberattacks. This includes the cost of IT restoration following a malware attack (1), extortion/ransomware negotiation consultants (3), and legal defense costs against third-party claims (4). However, physical damage to hardware (like a miscreant physically smashing a computer) is covered under standard property or home insurance, not cyber insurance (2 is incorrect). > One-line conceptual takeaway: Cyber insurance covers digital and legal liabilities arising from cyberattacks, but strictly excludes physical hardware damage. Answer: (b).
Question details
Year
2020
Paper
GS Paper 1
Question
Q60
Subject
Economy
Sub-topic
Financial Inclusion & Schemes
Type
Statement-based
Difficulty
Medium
Nature
Current-affairs-linked
Source hint
IRDAI guidelines on cyber insurance
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