IRDA forms panel to examine the need for a standard cyber liability cover for Indian market

The General Liability policies available currently in the Indian market do not cover cyber risks and cyber insurance policies currently available are highly customized for clients in a new and quickly growing market. Hence, it is felt that a basic standard product structure is required to provide insurance cover for individuals and establishments to manage their cyber risks, said the IRDAI.

 

Hyderabad:

The insurance regulator IRDAI has formed a panel with P. Umesh, consultant-liability insurance as its chairman, to  examine the need for a standard Cyber Liability Insurance product in the country and recommend the scope of the cyber liability insurance covers for the present context and for the medium term.

The General Liability policies available currently in the Indian market do not cover cyber risks and cyber insurance policies currently available are highly customized for clients in a new and quickly growing market. Hence, it is felt that a basic standard product structure is required to provide insurance cover for individuals and establishments to manage their cyber risks, said the IRDAI.

The panel will also explore possibility of developing standard coverages, exclusions and optional extensions for various categories. .

The panel will also evaluate critical issues involving legal aspects of transactions in cyber space and to examine various types of incidents involving cyber security in the recent past and possible insurance coverage strategies for those.

The panel will examine the cyber liability insurance covers available in Indian market and in other developed jurisdictions.

It will aslo study various statutory provisions on Information and Cyber Security.and examine various types of incidents involving cyber security in the recent past and possible insurance coverage strategies for those.

Amid the COVID 19 pandemic, there are rising incidences of cyberattacks and a growing number of high-profile data breaches. It is felt that cybersecurity is the most important need for all sectors today to address the numerous risks posed by cyber-attacks, explained the IRDAI .

Since the online exposures offices, business organizations and other establishments face continue to increase even as they become more globally networked and complex, insurance products need to adapt to the changing environment. 
  


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