Page 27 - RMAI Bulletin July - September 2021

RMAI BULLETIN JULY TO SEPTEMBER 2021

evaluate critical issues involving legal aspects of connected to the internet are rapidly increasing, and
transactions in cyber space; and to examine various all of them provide opportunities for a cyber-attack to
types of incidents involving cyber security in recent hit your home.
past and possible insurance coverage strategies for
them. The working group examining the cyber liability External attacks on companies result in the most
insurance covers available in the country and abroad. expensive cyber insurance losses, but it is employee
Many cyber attacks are not publicly known as it is not mistakes and technical problems that are the most
mandatory in India to report such crimes, and frequent generator of claims by number. If a cyber-
sometimes companies too refrain from it fearing dent attack results in people being unable to access their
in image and reputation. home or needing to replace an electronic device, the
coverage will ensure they're reimbursed for the costs
Cyber security insurance is the new age policy which associated with coping up with the unfortunate event.
tries to safeguard online users from online criminal
acts. Net banking, social networking and online
shopping are some of the daily activities performed by
Indian users over the internet. Individual Cyber
Insurance policies were written with the expansion of
the internet of things in mind, and coverage extends
to most items on your home network that are owned
or leased and operated by you or a member of your
family. Such attacks can happen to anyone, so buying
a cyber insurance is a smart option. First-party
coverages apply to losses sustained by you directly. An
example is the damages caused to your electronic data
files by a hacker. Third-party coverages apply to claims
against your firm by people who have been injured as
a result of your actions or failure to act.

Cyber Attack:

The word cyber-attack refers to data breaches at a
retailer or some big organizations, but did you know
that you could personally bear the brunt of a cyber
attack too? From a surprise virus to a deliberate rental
scam, to deeply hurtful cyber-bullying, the threats you
and your family face in the connected world are real
and not to be ignored. If electronic data stored on your
firm's computer system is lost, stolen, or compromised,
the cost of restoring it can be significant. A data breach
can damage more than just your computer system; it
also can damage your reputation and put you and your
family at risk.

That's why cyber insurance can be a smart precaution
to avoid such threats. A cyber-attack is likely what you
first thought of as being protected by Individual Cyber
Insurance. If a computing device (desktop, laptop,
tablet, etc.) or connected home device (smart phone,
thermostat, security system) owned/leased and
operated by you is attacked by a virus, this portion of
the policy will help you recover. The ways that we are

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