Question 69 from UPSC CSE 2020 - CURRENT AFFAIRS

Question

In India, under cyber insurance for individuals, which of the following benefits are generally covered, in addition to payment for the 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:

Accepted Answer

Correct Option: B. 1, 3, and 4 only

Strategy: Focus on the typical costs included in individual cyber insurance policies: system restoration, hiring consultants for cyber extortion, and legal defense. Physical damage to computers, even if deliberate, is generally not covered as it's not considered a cyber risk. This distinction helps in identifying valid coverage options by excluding physical damage.

Key Info: Cyber insurance for individuals is a specialized product designed to cover various risks related to loss and liability arising from cyber incidents, including cyber-attacks, extortion, and online fraud.

*   **Cost of restoration of computer system** -- Coverage includes expenses involved in restoring or retrieving data and system access lost or corrupted due to malware, ransomware, or unauthorized cyber activity.
*   **Cyber extortion** -- Policies usually allow reimbursement for costs related to hiring professional consultants (including negotiators or IT specialists) during cyber extortion, as well as possible compensation paid to cyber criminals under expert advice.
*   **Legal defense** -- Most policies reimburse the insured for costs incurred in defending themselves in a court of law if a third party brings a suit related to a covered cyber event (such as data breach or privacy violation).
*   **Physical damage to hardware** -- Standard cyber insurance policies exclude physical loss or damage to computers or gadgets, even if caused willfully by an external party. For such cases, a typical electronics or property insurance policy is relevant.

Common inclusions in Indian cyber insurance policies for individuals are identity theft, cyber-bullying, financial loss due to phishing or unauthorized access, malware remediation costs, legal expenses, and privacy breach cover. Noteworthy insurers offering these policies in India include ICICI Lombard, HDFC ERGO, and Bajaj Allianz.

Answer

Option A: 1, 2, and 4 only

Answer

Option C: 2 and 3 only

Answer

Option D: 1, 2, 3, and 4