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Cyber Insurance Coverage Checklist 2023
Feb 20, 2023

Cyber Insurance: Protection Against Increase in Cyber Crimes

As the world is now closer with the help of the internet, it opens up different avenues for everyone. Be it for connectivity, business, or other types of interaction, the internet has been a boon for humanity. However, this increase in its reach has also led to the rise of cybercrimes. From regular people to big business corporations, everyone is at risk. With India continuing to digitise its economy and increase its dependence on technology, the risk of cybercrimes is continuous. To be safeguarded from these crimes, it is important to invest in cyber insurance and here is more information related to this insurance policy.

What is cyber insurance?

Cyber insurance is a form of insurance that covers financial losses incurred due to a cyber-attack. This type of insurance is designed to protect business houses and individuals from the financial consequences of cybercrime, such as the cost of restoring lost data and reimbursing the customers for any losses. Cyber insurance also covers liability for third-party claims, such as lawsuits stemming from a data breach. *

The role of the government

The Indian government has been taking steps to increase awareness of cyber insurance and encourages businesses and individuals to purchase coverage. The Reserve Bank of India (RBI) has made it mandatory for banks to purchase cyber insurance for protection due to the increase in cybercrimes against financial institutions. The government has also announced plans to set up a national cyber-insurance pool to provide coverage to small and medium-sized businesses, which may not have the resources to purchase their own coverage.

Inclusions and Exclusions

The following are some of the cyber threats included under cyber insurance coverage:
  1. Siphoning of funds
  2. Theft of identification
  3. Online bullying or stalking
  4. Online shopping
  5. Data and privacy breach
The exclusions are:
  1. Any action caused due to ill-intent
  2. Non-disclosure of proper information related to the incident
  3. Injuries or damage
  4. Loss of data caused due to electrical or mechanical failure
  5. Being involved in unlawful activities
  6. Dealing in funds and currencies that are not authorised and regulated by the central bank
*Standard T&C apply

How to file a claim?

Here’s a five-step process to initiate the cyber insurance claim process :
  1. Inform the insurer when a cyberattack has taken place.
  2. The insurer will send an investigator to assess the type of attack and breach that might have taken place. This helps them understand the severity of the attack.
  3. Based on the severity of the attack, the insurer may send a cyber security expert if required.
  4. The policyholder is given a brief about the details of the attack and the possible solutions for it.
  5. Based on the solution, the insurer will compensate for it.
 *Standard T&C apply

Future of cyber insurance

The demand for cyber insurance in India is expected to increase as more businesses and individuals become aware of the potential risks and consequences of cybercrime. The increasing use of technology and the internet, as well as the digitisation of the economy, has led to an increase in the number and complexity of cyber-attacks, making it more important than ever for businesses and individuals to protect themselves. * In addition, the implementation of the General Data Protection Regulation (GDPR) and the Personal Data Protection Bill (PDPB) in India, which are aimed at protecting personal data and privacy, will also increase its demand. *Standard T&C apply


While the market for this general insurance  coverage is at a fairly nascent stage, it is expected to grow rapidly in the coming years. The lack of awareness and understanding of it among businesses and individuals has been a major barrier to the growth of the market. However, this is changing as more people become aware of the potential risks and consequences of cybercrime, and as the government takes steps to promote its adoption. You can get in touch with your insurance advisor as well as a cyber security expert to understand the growing importance of this insurance and how it safeguards private and public data that pertains to you and those dependent on you.   Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.  

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