The recently launched “Individual Cyber Insurance Policy” by Bajaj Allianz General Insurance Co. Ltd., is one of the few solutions present in the market which provide an Individual a cover from all kinds of Liabilities and Costs which can arise out of a Cybercrime or any other such damaging incident. This blog will provide an overview and some necessary details of this Policy which one needs to know if they are searching for a Solution such as Cyber Insurance or are Planning to subscribe to one.
Instances covered by the policy
The policy covers the following instances of Cybercrimes and incidents
● Identity Theft Cover
● Social Media Cover
● Cyber Stalking Cover
● IT Theft Cover
● Malware Cover
● Phishing Cover
● E-mail Spoofing Cover
● Media Liability Cover
● Cyber Extortion Cover
● Data and Privacy Breach by third Party Cover
Expenses and Liabilities covered
● In all of the above instances of Cybercrimes and incidents, the policy covers the entire Legal expenses be it for defending of a Lawsuit filed against the Individual for damages caused to
another entity due to the incident or for the prosecution of a criminal case.
● Another aspect which the policy covers is the indemnification of the amount which is lost due to the incident i.e. a direct consequence caused on an Individuals Financial Situation
such as money deducted from the bank account.
● The policy also covers the costs incurred to repair and restoration due to the loss/tampering of data/device due to a malware.
● The policy also covers the costs and damages incurred by a Third Party in case of a Data
Privacy Violation or a financial loss incurred because of a Cyber Threat.
● Going Beyond these costs and indemnification of direct consequences, the Policy also provides for a Cover to Consult with an IT specialist in order to repair and improve the Infrastructure and also with a Therapist to cope with the loss and deal with the Mental Agony Suffered.
● The policy provides a Cover Starting from Rs. 1 Lack and up-to Rs. 1 crore, where one will need to renew the policy annually.
Limitations of Policy
While it is important to understand the full extent of a policy’s Indemnification features, one also needs to understand the Limitations and prerequisite conditions which can often reject insurance claims.
● The First and the Most important Prerequisite condition, to reap the benefits of this policy. is for the inured to have reasonable precautionary security measures in place which prevent such incidents from happening in the first place.
● Besides the above condition, the Insuring company can disapprove a claim if the Loss/Damage arising out of any fraudulent/Dishonest/Criminal Intention or act/omission of the Insured.
● The policy also doesn’t cover any Bodily injuries or damages to any tangible resources(Except to the extent mentioned above)
● Another limitation in the policy is that It only covers one instance of the problems i.e. in a situation where one is a victim of multiple Cyber crimes/incidents, they will only be allowed to avail the benefits of one incident.
● One also needs to remember that this policy is only available to an individual who is above the age of 18 years which means that this Policy is only exclusive to Individuals and not for the Organizations or Companies.
This Cyber Insurance solution, while is a good step in the right direction, it does fall short on various instances by limiting the scope of the Cover to a very large extent and leaving many apprehensions upon the liabilities arising out of a statuary obligation. However, an individual’s apprehension can be resolved by talking with a Bajaj Allianz Executive and reading the Entire Policy Text. This blog is intended for Educational Purposes Only and shouldn’t be considered as a Professional Financial Advice or a sponsored/ promotional Post of Bajaj Allianz General Insurance