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 ?
- 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 willfully 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
Select the correct answer using the code given below :
1, 2 and 4 only
1, 3 and 4 only
2 and 3 only
1, 2, 3 and 4
Answer is Wrong!
Answer is Right!
This question was previously asked in
UPSC IAS – 2020
Statement 2: While some comprehensive policies or riders might exist, the primary focus of cyber insurance is not on covering the cost of replacing hardware that is physically damaged, even if the damage is caused by a miscreant. Physical damage is usually covered by standard property or home insurance. Cyber insurance focuses on financial losses, data loss/recovery, system restoration, cyber extortion, identity theft, and associated legal costs resulting from cyber events. This is generally *not* a standard cyber insurance benefit. Incorrect.
Statement 3: Cyber extortion, such as ransomware attacks, is a key risk covered by individual cyber insurance. This coverage often includes the cost of hiring specialists (like cybersecurity consultants or negotiators) to help resolve the extortion demand and minimize loss. Correct.
Statement 4: If a cyber incident originating from an individual’s system (e.g., spreading malware, involvement in a botnet) causes harm to a third party, leading to a lawsuit, cyber insurance can cover the legal costs for defence in court. This falls under the liability aspect of cyber insurance. Correct.