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:
Explanation
Individual cyber insurance policies protect consumers against losses stemming from malware, phishing, and online identity theft:
– 1. System restoration cost (Covered): Covers expenses incurred to reinstall operating systems and remove malicious malware or ransomware.
– 3. Cyber extortion consultant fees (Covered): Reimburses professional fees paid to certified cybersecurity consultants or forensic specialists handling ransom demands and extortion negotiation.
– 4. Legal defence costs (Covered): Reimburses litigation expenses and legal defence fees if third parties initiate legal actions or regulatory claims against the policyholder resulting from unintentional data leaks.
– 2. Cost of a new physical computer for intentional physical vandalism (Excluded): Physical property destruction, hardware vandalism, and deliberate intentional damages are standard property insurance exclusions and are not indemnified under cyber insurance.
Therefore, benefits 1, 3, and 4 are covered — Option B.