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 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
Select the correct answer using the code given below :
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Answer: B. Typical individual cyber insurance policies in India cover the cost of restoring data or the computer after malware, the cost of a consultant to handle cyber extortion, and legal defence costs if a third party sues. They do not pay for a new computer damaged physically by someone. So 1, 3 and 4.
Watch for: 'Cyber' insurance covers digital losses, not physical damage to hardware.
Why the other options are wrong
- A. Wrong because a new computer after physical damage is not covered.
- C. Wrong because physical damage is not covered and restoration and legal costs are.
- D. Wrong because a new computer is not covered.
Source to check: IRDAI-approved individual cyber insurance policy wordings (for example Bajaj Allianz Individual Cyber Safe, HDFC ERGO Cyber Sachet), irdai.gov.in
Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.