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
- C.2 and 3 only
- D.1, 2, 3 and 4
▶ Answer & Explanation
Correct answer: B. 1, 3 and 4 only
Cyber insurance policies for individuals typically cover direct financial losses and expenses related to cyber incidents. This includes the cost to restore IT systems damaged by malware or cyber-attacks, expenses incurred for hiring experts to mitigate losses from cyber extortion, and legal defence costs if a lawsuit is filed by a third party due to a cyber incident. Coverage for the outright replacement of a new computer due to wilful damage by a miscreant falls under property insurance rather than standard cyber insurance.
Source: UPSC gs1 2020