ICICI Lombard General Insurance, on Friday, launched its Retail Cyber Liability Insurance policy.
The policy offers complete protection to individuals and their families against any cyber frauds or digital risks that could result in a financial or reputational loss.The retail cyber insurance product is a form of insurance that protects individuals against losses that individually vary from online theft to unauthorised transactions.
The policy can be purchased at an affordable rate by all digitally active individuals. The premium ranges from Rs 6.5 per day to Rs 65 per day. The Sum Insured for the cover ranges from Rs 50,000 to Rs 10,000,000 as opted by the policyholder. The policy provides coverage to the entire family, including children for a duration of 1 year.
The company's product is designed to secure the digital world against losses in the event of a cyberattack. The coverage will include protection against:
• Identity theft
• Cyber extortion
• Malware intrusion
• Financial loss due to unauthorized and fraudulent use of bank account, credit card and mobile wallets
• Legal expenses arising out of any covered risk
ICICI Lombard has innovated by covering newer threats such as:
•Reputation injury- all the expenses incurred in restoring digital reputation with means of removal of the harmful publication from the internet can also be claimed.
•Individual lost wages– if someone loses wages that would have been otherwise earned, for the time necessarily taken off from work to rectify facts arising out of any covered risk can also be claimed
Speaking on the launch, Sanjay Datta, chief – claims, underwriting and reinsurance said, "We are living in a digital world where data is being engendered, transmitted and deposited every nanosecond. Today, data is gold. And, to protect it, is paramount. While we live a digital life, the risks of cyberattacks have also grown exponentially. Our new product comes at an opportune moment when everybody is working remotely, using social media and net banking and is digitally active. The product is designed to protect individuals against the dangers that come with the connected life like cyber-bullying, identity theft and more. The policy asserts the company's pledge to provide innovative new-age risk solutions to our customers while protecting their reputation, prospective data breaches and losses in case any vital information is stolen or abused."
India is one of the most prominent digital markets, with a vast potential for exponential growth. Data shows on a country level; we have over 560 mn internet subscribers and over 350 mn social media users. India is the second-largest App Market by Download and has over 180 Mn+ e-commerce users. When it comes to phone-based transactions, we have over Rs Trillion UPI transactions.
This lays the ground for a huge potential for cyberattacks. Undoubtedly, and this opportunity is followed by the menace of cyber risks and frauds which, too, have been growing considerably.
Research shows that:
• Cyber-attacks have soared 86% in the four weeks roughly between March and April & overall 37% in first quarter of 2020
•Hackers based in China attempted over 40,300 cyber-attacks on India in 3rd week of week of June, mostly covid-19 based scams. The attacks aimed at causing issues such as denial of service, hijacking of Internet Protocol and phishing
• Rs 1.24 trillion is the amount lost in India in the past 12 months due to cybercrime.
• 131.2 million is the number of cybercrime victims in India in 2019 & 63% of them were impacted financially
According to the Internet Crime Report for 2019, released by FBI's Internet Crime Complaint Centre (IC3), India ranks third among the top 20 countries that are victims of cybercrimes. Going by this data, we are at a high risk of exposure, and personal cyber insurance seems the only respite.