In India, under cyber insurance for individuals, which of the following benefits are generally cover

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UPSC Prelims is a competitive examination conducted in India. This question is from the 2020 UPSC Prelims Current Affairs paper.

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Question

In India, under cyber insurance for individuals, which of the following benefits are generally covered, in addition to payment for the funds and other benefits?Cost of restoration of the computer system in case of malware disrupting access to one's computerCost of a new computer if some miscreant wilfully damages it, if proved soCost of hiring a specialized consultant to minimize the loss in case of cyber extortion.Cost of defence in the Court of Law if any third party files a suitSelect the correct answer using the code given below:

Accepted Answer

Correct Answer: B — 1, 3 and 4 onlyStep-by-step Solution:Cyber insurance policies for individuals typically cover:1. Restoration cost: Yes, recovery from malware, ransomware attacks. ✓2. Cost of new computer (wilful damage): Not covered; physical damage is not covered under cyber insurance (it would be under home insurance). ✗3. Consultant for cyber extortion: Yes, policies cover negotiating with hackers and paying ransom (subject to terms). ✓4. Legal defence costs: Yes, if sued by a third party for data breach, cyber‑stalking, etc. ✓Why other options are incorrect:Option A (1,2,4): 2 not covered.Option C (2,3): 2 not covered.Option D (all four): 2 not covered.Key Concept: Cyber insurance is a growing market in India. IRDAI has issued guidelines. Coverage may include identity theft, phishing, social media cover, etc. Many banks and fintechs offer cyber insurance to customers.

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