Page 37 - Insurance Times Janaury 2021

In India, very few law firms have virtual
private networks (VPN) and cloud solutions so
that basic security is taken care of even in a
WFH environment. The draft of National
Cyber Security Strategy 2020, that envisages
creating a secure cyberspace in India provides
for a watertight mechanism to ensure the
protection of one's data. The rights provided
under the Bill are on par with the rights
provided under the GDPR. Apart from dealing
with rights concerning one's data such as the
right of access, right of erasure, right of
correction, right of data operability etc., it
Y Use safe payment options when making purchases also has specific provisions on the transfer of data, including
online. Credit cards are generally the safest option data localization requirements and restrictions on cross-
because they allow buyers to seek a credit from the
border transfer of data thereby ensuring a holistic
issuer if the product isn't delivered or isn't what was protection of one's personal data and information.
ordered.
Y Upgrade your computer and devices with the latest Hence, we hope that the Bill will strike a balance between
updates and operating systems. data privacy and fostering digital innovation simultaneously.
As India gears up to become a digital economy, with its
Y Backup your digital information, such as photos, music, thriving ICT and ecommerce sectors, coupled with the rise in
financial and health records, and personal contacts, by
remote working and people spending more time online, data
making copies of your data. breaches and security threats have increased manifold. At
present, India does not have a comprehensive data protection
We live in a digital world where information is created and framework when compared to other countries. The IT Act
transmitted at hyper speed, thus, making it crucial to and the SPDI Rules only offer minimal protection with respect
safeguard ourselves against the risk that digitization brings to personal data and sensitive personal information.
with it i.e. cyber threats. There has been an increase in the
usage of internet on personal computers and digital devices All of this makes it critical to implement an overarching data
in the recent past and that has seen an uptick in the protection framework that adequately deals with data
lockdown. Post the lockdown, as more and more individuals privacy and security. Businesses that bear sensitive customer
are using digital means to process payments, this has led to information, finance, banking, health care service providers,
increased cyber threat exposure, especially to new users, IT services etc must take a dedicated cyber insurance policy.
Businesses, regardless of its service, chiefly depend on IT
the elderly or less tech-savvy.
infrastructure to perform their day to day operations and
businesses. Any event of compromise with IT security can
While opting for a cyber-insurance cover, individuals need
bring about enormous data and business loss, expensive
to match the policy coverage with their needs and select lawsuit etc. As a result, to safeguard business functioning
the sum insured according to their exposure. Many and its operations, enterprises must decide on a
insurance companies in India offer cyber security insurance comprehensive cyber risk insurance policy.
at a reasonable premium. The sum insured can range from
Rs 1 lakh to Rs 1 crore. The number of cyber insurance claims
References:
has steadily risen over the last few years.
1. https://www.weforum.org/agenda/2020/10/there-s-not-
enough-money-in-cyber-insurance/
Business interruption is the main cost driver behind cyber
2. https://www.spglobal.com/ratings/en/research/articles/
losses, accounting for around 60% of the value of all claims
200902-cyber-risk-in-a-new-era-insurers-can-be-part-of-
analyzed, followed by costs involved with dealing with data the-solution
breaches. During 2020 Google said it has had to block over 3. https://home.kpmg/in/en/blogs/home/posts/2020/11/
11,000 government-sponsored potential cyber-attacks per cyber-insurance-a-proactive-measure-for-
quarter. Recent years have seen critical infrastructure, such enterprises.html
as ports and terminals and oil and gas installations hit by 4. IRDAI Annual Report 2019-20
cyber-attacks and ransomware campaigns. 5. Newspapers & Journals

The Insurance Times, January 2021 37