Page 8 - Insurance Times November 2020
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the report says it is the largest risk fac-  mated at around Rs 8,000 crore. The  than 50 paise per day, you can protect
         tor for deaths for India, followed by  total export credit disbursement sup-  yourself against the financial risk of
         high blood pressure. The report, how-  ported over the five-year period under  getting defrauded online. During this
         ever, notes the success of the 'Pradhan  this scheme, is estimated to be at  COVID-19 era, as you shop online, this
         Mantri Ujjwala Yojana Household LPG'  around Rs 26 lakh crore.        insurance will provide coverage
         programme, saying it helped dramati-  Sources said the main purpose of this  against various cyber threats. Thus,
         cally expand access to clean energy,                                  making your online experience worry-
                                            scheme is "to revive export credit dis-
         especially for rural households and                                   free."
                                            bursement and to ensure flow of ad-
         helped reduce "household air pollution  equate and affordable export credit to  Commenting on the new offering,
                                            exporters".                        Ranjith Boyanapalli, Head - Fintech
                                                                               and Payments Group, Flipkart, said,
                                            Due to the Covid pandemic, there has
         Centre looks to boost ex-                                             "At Flipkart, it is our constant en-
                                            been a sharp decline in export credit
         port credit disbursal              disbursement by banks. The major rea-  deavor to make online shopping safer
                                                                               and more convenient for customers
         through Rs 8,000 crore in-         son for the decline is the risk of NPAs.  transacting digitally. The cyber insur-
                                            Expanding the insurance support to
         surance scheme                     banks will help exporters get easy  ance offering in partnership with Bajaj
         The Central Government is considering  credit.                        Allianz is a step in this direction. As the
                                                                               festive season nears, we want to en-
         a special scheme for exporters under
                                                                               sure that the customers' online shop-
         which a premium subsidy of up to Rs  Digital Suraksha Group In-
         8,000 crore will be provided on export                                ping experience, across any digital
         credit insurance, sources said. This will  surance launched           medium, is devoid of stress and appre-
         help exporters get easier and cheaper  Flipkart, and Bajaj Allianz General In-  hensions."
         credit.                            surance Company, have jointly      A recent survey conducted by
                                            launched 'Digital Suraksha Group Insur-  NortonLifeLock stated that about 80%
         A proposal to this effect is at the final
                                            ance' for customers who want to cover  of respondents reported being a victim
         stage and could be part of the next
                                            themselves against financial losses  of cybercrime at some point in their
         stimulus package, a source added.
                                            caused as a result of cyber-attacks,  lives. Now, with customers spending
         Under the proposed scheme, 90 per-  cyber frauds, or other such malicious  more time online for activities such as
         cent of the export credit will be in-  activities across various online plat-  working, learning, gaming, entertain-
         sured, said the sources. Currently un-  forms.                        ment, shopping, and transacting, they
         der the Export Credit Insurance for                                   are more vulnerable than before to
         Bank (ECIB) facility, 60 percent of the  The Digital Suraksha Group Insurance
                                            compensates for direct financial loss  cyber-attacks, especially the ones
         export credit is insured by the ECGC                                  which are directed at individuals. In-
                                            (up to the sum insured) due to unau-
         (Export Credit Guarantee Corporation).                                surance products such as Digital
                                            thorized digital financial transactions
         The Central Government will provide  as a result of identity theft arising out  Suraksha Group Insurance, provide
         the increased cost of the premium as  of cyber-attacks, phishing/spoofing,  consumers ease of mind and a strong
         a premium subsidy. The subsidy rate  and SIM-jacking. Customers can opt for  tool to safeguard them from any new-
         will vary from sector to sector. The  a one-year cover at premiums as low  age digital transaction risks that they
         highest premium subsidy has been pro-                                 might be exposed to.
                                            as Rs. 183 for a cover of Rs. 50,000.
         posed for agro product exports such as
                                            Highlighting the benefits of the prod-  Pricing
         tea and rice, followed by Engineering
                                            uct, Mr, Tapan Singhel, MD & CEO,  Customers can get a cover of Rs.
         Products and others.
                                            Bajaj Allianz General Insurance said,  50,000 (for a premium of Rs. 183),
         New exporters will get an additional                                  Rs.1,00,000 (for a premium of Rs. 312)
                                            "Cyber-attacks pose a serious threat
         benefit as a higher premium subsidy  wherein your money, reputation, and  and Rs.2,00,000 (for a premium of Rs.
         compared to existing exporters.    personal data is at stake. With this  561), for a 12-months tenure, with
         For the next five years, the total cost  Digital Suraksha Group Insurance in-  covers also extending up to Rs.
         of premium subsidy has been esti-  troduced on Flipkart's platform, at less  10,00,000.

           8  The Insurance Times, November 2020
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