Rising cyber threats: Get your cyber insurance soon or else you may have to...

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New Delhi: A substantial increase in digital transactions has led to a sharp increase in cyber scams. In response, more businesses and individuals are choosing cyber insurance coverage to guard against financial damage brought on by the leaking of any personal data.

What is Cyber Insurance?

Cyber insurance is a sort of coverage that guards against financial losses caused by many hazards of the digital age, including malware attacks, phishing, identity theft, and social media breaches, among others. ()

"The volume of e-transactions significantly increased following the pandemic, which sparked the expansion of cyber insurance. Additionally, there was a chance of online fraud. Accordingly, there is a rising need for cyber insurance from both corporate clients and retail clients who are getting more and more conscious of it, according to Rajesh Kumar Sharma, CEO and Principal Officer of Anand Rathi Insurance Brokers. ()

The Reserve Bank of India (RBI) reports that at the end of FY22, digital payments represented 96.32 per cent of all payments, up from 95.4 per cent in FY20. The RBI Digital Payments Index, which analyses digital payments, increased by 29.08 per cent from a year ago to 270.59 points in March 2022, an all-time high.

The Insurance Regulatory and Development Authority of India (IRDAI) last year published recommendations for a sample cyber insurance policy for individuals that general insurers are encouraged to abide by in light of the growth in fraud. "A person should buy a cyber-insurance coverage since everything they own, including their savings and money, is at risk of being stolen by hackers.

These plans are also reasonably priced. For instance, Bajaj Allianz charges a premium of Rs. 2,848 for a sum assured of Rs. 10 lakh (exclusive of GST). According to S.K. Sethi, Director of RIA Insurance Brokers and author of the book 1 Cyber Attack can ruin you forever, other insurance companies such as Tata AIG, ICICI Lombard, and New India Assurance also provide this policy.

It is always advisable to purchase cyber insurance coverage to protect both you and your company.