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 :
- (a) 1, 2 and 4 only
- (b) 1, 3 and 4 only ✓ UPSC's answer
- (c) 2 and 3 only
- (d) 1, 2, 3 and 4
Why the answer is (b)
• Individual cyber-insurance policies in India (e.g. HDFC ERGO, Bajaj Allianz) cover financial loss from online fraud plus related costs.
• Typically covered: restoration/data-recovery costs after a malware attack (1), fees of a specialist consultant to handle cyber extortion or ransomware (3), and legal defence costs if a third party sues over, say, defamation or IP infringement from the insured's device (4).
• Item 2 is wrong: physical damage to the computer by a miscreant is a property-insurance matter, not cyber insurance.
• IRDAI issued model cyber-insurance guidance in 2021.
• Hence 1, 3 and 4 only, option (b).
Why the other options are wrong
- (a) 1, 2 and 4 only
- Item 2 (physical damage) is not a cyber-insurance benefit.
- (c) 2 and 3 only
- Item 2 is wrong; items 1 and 4 are covered.
- (d) 1, 2, 3 and 4
- Item 2 is wrong.
Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2020, held on 4 October 2020. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.