[Solved] 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

Q90. 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: B

Restoration Cost of Computer Systems:

Cyber insurance policies typically cover the cost of restoring the computer system if a malware attack disrupts access.

This includes costs related to identifying, removing, and recovering from the malware to restore normal computer functions.

Hence, statement 1 is correct.

Cost of a New Computer:

The cost of purchasing a new computer, even if it is proven that it was wilfully damaged by a miscreant, is generally not covered under cyber insurance policies.

Insurance focuses on digital losses and system recovery rather than the replacement of physical hardware.

Hence, statement 2 is incorrect.

Hiring a Specialized Consultant for Cyber Extortion:

Cyber insurance often covers expenses related to hiring specialized consultants to mitigate losses from cyber extortion, such as ransomware attacks.

This may include costs associated with negotiating, recovering data, or preventing further damage.

Hence, statement 3 is correct.

Cost of Defense in Court:

If a third party files a lawsuit related to a cyber incident, cyber insurance policies commonly cover the legal defense costs.

This includes expenses incurred in defending against lawsuits and paying for legal counsel.

Hence, statement 4 is correct.

Extra:

Cyber Insurance in India:

The Insurance Regulatory and Development Authority of India (IRDAI) is working on

standardizing cyber liability insurance products to ensure comprehensive coverage against

various cyber risks, including legal expenses and extortion-related costs.

Exclusions:

While cyber insurance covers many aspects of cyber risks, physical damage to computer

hardware, such as purchasing a new computer due to wilful damage, is generally excluded.