Cyber insurance safeguards against financial fraud in India

Cyber fraud is on the rise, making cyber insurance increasingly important for individuals. This type of insurance helps cover financial losses from online scams and provides legal and technical support. In recent years, digital activities have become part of daily life. However, this convenience comes with risks, including cyber fraud. Many people, even those who are tech-savvy, find themselves victims of scams. One notable case involved Ananya Sharma, a 32-year-old IT professional from Bengaluru. She lost 80,000 rupees after clicking a link in a fraudulent message about her electricity bill. Scams can be very sophisticated, using advanced technology like AI and deepfake techniques. Many people remain unaware of how to report these crimes, and the number of cyber fraud cases in India is staggering, with estimates suggesting that one-and-a-half million are reported each year. The real number may be higher, as many incidents go unreported. Cyber insurance can protect individuals from these threats. Most policies cover losses from financial cyber fraud and can reimburse victims if money is stolen through unauthorized online transactions. For an annual premium of 600 to 25,000 rupees, individuals can secure coverage between 1 lakh and 1 crore rupees. Many policies also offer protection against identity theft and cover legal and recovery costs if social media accounts are hacked. Additionally, these insurance plans include features for ransomware attacks, online blackmail situations, and even counseling for victims of cyberbullying. Specific policies cater to different needs, including those for students or social media liabilities. However, cyber insurance does have exclusions. It typically does not cover losses due to dishonest or malicious acts, or those related to natural disasters and cyber terrorism. Individuals must understand the limits of their coverage to avoid unexpected gaps in protection. In conclusion, as we navigate the digital world, cyber insurance has become essential. It offers a safety net and support for individuals facing the growing risks associated with online fraud. Preparing for these risks is crucial in today's technology-driven society.