IRDAI has issued a circular to insurance companies regarding individual cyber insurance. Accordingly, this insurance will cover fund theft, unauthorized online transactions.
As digitization is happening, cases of cyber fraud are coming to the fore at a faster rate. The method and scale of cyber fraud has increased a lot. In such a situation, in order to reduce the risk, the insurance regulator IRDAI asked the insurance companies to expand the scope of individual cyber insurance. Irda has clearly told the companies that what they have to include in their product.
According to the latest circular issued by IRDAI on September 8, it has been made mandatory to cover incidents like fund theft, identity theft, unauthorized online transactions, email spoofing in individual cyber insurance. According to the National Cyber Security Agency CERT-In (Computer Emergency Response Team of India), more cyber attacks are happening on individual networks during the Corona period. People are working at homes, so cyber frauds are targeting personal computers and networks.
Individual cyber insurance is now necessary
In a report published in the Economic Times, TA Ramalingam, Chief Technical Officer, Bajaj Alliance General Insurance said that cyber insurance has now become necessary for individuals. According to the IRDAI circular, there will be certain rules for individual cyber insurance, such as theft of funds, theft of identity, theft of social media data, cyber stalking/bullying, malware cover, phishing cover, un-authorized online transactions, It will be necessary to cover email spoofing, media liability claims, cyber extortion, data breaching and privacy breaching.
Four major categories on the basis of loss
The liability of individuals towards cyber insurance has also been fixed in the ITRDAI circular. In this it has been told when the company can reject the claim. What will be the rule in case of financial loss. Apart from this, the damage done through cyber fraud is divided into four different categories. Necessary instructions have been issued for each category.
