Q. In India, under cyber insurance for individuals, which of the following benefits are generally covered, in addition to payment for the loss of funds and other benefits?
1.Cost of restoration of the computer system in case of malware disrupting access to one’s computer
2.Cost of a new computer if some miscreant wilfully damages it, if proved so
3.Cost of hiring a specialized consultant to minimize the loss in case of cyber extortion
4.Cost of defence in the Court of Law if any third party files a suit
Select the correct answer using the code given below:
a) 1, 2 and 4 only
b) 1, 3 and 4 only
c) 2 and 3 only
d) 1, 2, 3 and 4
Correct Answer : b) 1, 3 and 4 only
Question from UPSC Prelims 2020 GS Paper
Explanation:
1. Cost of restoration of the computer system in case of malware disrupting access to one’s computer
This is a common coverage in cyber insurance policies for individuals. It covers the expenses involved in restoring the functionality of a computer system after it has been compromised by malware, which is a frequent cyber threat.
2. Cost of a new computer if some miscreant wilfully damages it, if proved so
This is generally not covered under standard cyber insurance policies for individuals. Cyber insurance typically focuses on the losses incurred due to cyber threats and attacks such as hacking, phishing, identity theft, etc., rather than physical damage to the computer hardware caused by a person. Physical damages are usually covered under a different type of insurance policy, like homeowners’ insurance or specific gadget insurance policies.
3. Cost of hiring a specialized consultant to minimize the loss in case of cyber extortion
This is also a benefit commonly covered under cyber insurance policies. Cyber extortion, where an attacker demands money in exchange for not carrying out a threat against the insured’s computer system or data, can lead to significant losses. Hiring a specialized consultant can help in mitigating these threats, and the costs associated with such consultancy are often covered.
4. Cost of defence in the Court of Law if any third party files a suit
This is another aspect typically covered under cyber insurance policies. Legal costs can accumulate quickly in the event of lawsuits related to cyber incidents, such as data breaches that compromise third-party information. Cyber insurance policies often provide coverage for legal defense costs to protect the insured from financial losses arising from such legal actions.
Therefore, options 1, 3, and 4 are benefits generally covered under cyber insurance for individuals, making option b) the correct answer.
